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In a constantly changing world of work, developing employee skills is no longer an optional extra for companies. It is a key success factor for remaining competitive and promoting talent in the long term. The eighth step of the proven KIROI model offers decision-makers structured support for targeted employee competence development. This methodology helps organisations to systematically develop their employees while pursuing strategic corporate goals. In this article, you will learn how to implement employee competence development in practice and which tools have proven their worth in various industries.
Why employee competence development is crucial today
Employees are the most valuable asset of any organisation. But their skills are not static. Markets change rapidly, new technologies are constantly emerging and customer expectations are constantly growing. Companies that do not invest in employee skills development will be left behind[1].
The pressure is great: a shortage of skilled labour, rising staff turnover and declining loyalty are a reality in many industries. At the same time, talented employees are looking for employers who offer them development opportunities. A structured employee competence development programme solves this dilemma. It shows employees that the company is investing in their future. This strengthens loyalty and motivates employees to perform better[2].
This effect is particularly evident in the financial sector. Managers promote talent through individual coaching sessions. This teaches them to better master complex decision-making processes. The result: greater expertise, better collaboration and reduced staff turnover[1].
Understanding the three levels of employee competence development
Employee competence development does not work according to a universal recipe. Instead, it is based on three different levels that work together and complement each other[1].
Level 1: Learning by doing in practice
At this level, the focus is on direct application. Employees learn through real work situations, not through theory. Job rotation, project work and on-the-job training are typical methods[1].
Companies in the mechanical engineering industry often use this strategy. Experienced employees are deployed as mentors and pass on their knowledge directly in the workplace. A young technician learns to solve practical problems right from the start. This is much more effective than explaining theoretical concepts in a seminar room[4].
Job rotation works in a similar way in retail. Employees rotate through different departments. They gain varied experience and develop key competences beyond their actual area of responsibility. This practical form of learning promotes flexibility and prepares employees for broader responsibilities[4].
Level 2: Coaching for individual support
Not all employees benefit equally from learning by doing. Some need personal support. This is where the coaching level comes into play. Mentoring programmes and one-on-one coaching create a protected space for development[1].
Coaches provide targeted feedback and support in overcoming challenges. In the healthcare sector, for example, a team leader introduces monthly feedback rounds. This allows them to recognise where individual development needs arise at an early stage[2].
A logistics company uses coaching even more systematically. It supported a young manager through continuous coaching. At the same time, it organised job rotation in various departments. The result: the competences were sustainably expanded and the career path was shaped for the long term[2].
Level 3: Training to expand theoretical knowledge
Practical learning and coaching are often not enough. Expertise and soft skills also need a theoretical foundation. Workshops, seminars and training courses impart structured knowledge[1].
The integration of artificial intelligence is becoming increasingly important in the IT sector. Systems automatically recognise where deficits arise and recommend personalised learning content. Employees can expand their skills in programming languages in a targeted manner and thus remain marketable[4].
Further training programmes for industrial foremen are standard in mechanical engineering companies. These consist of academic courses accompanied by practical learning workshops and coaching sessions. Such a mix supports individually tailored employee skills development and helps to secure the next generation of managers in the long term[4].
KIROI step 8: Structured monitoring of employee competence development
The KIROI model offers decision-makers a proven framework. The eighth step focuses specifically on structured support for employee competence development. This step combines all three levels in an integrated strategy[4][6].
KIROI Step 8 recommends a combination of several learning formats. These proven formats are: Training on the job, training near the job and training off the job. In addition, there is accompanying coaching that supports the entire process[6].
Training on the job: learning while working
Employees learn directly during their daily work. Experienced colleagues or superiors are available as contacts. What is learnt is immediately applied in practice, which increases effectiveness[5].
In a medium-sized technology company, a mentoring programme was combined with practical on-the-job training.
BEST PRACTICE with one customer (name hidden due to NDA contract) This practical support noticeably increased employees' methodological skills. They were now able to solve complex tasks more independently. This was particularly evident in technical projects, where employees previously often had to ask questions. After the mentoring programme, they worked more independently and purposefully.
Training near the job: theory with practical relevance
Theoretical content is taught in the company's own seminar rooms. The advantage: the content can be directly adapted to the realities of the company. Employees immediately understand how to apply what they have learnt in everyday life[6].
One software company makes clever use of this method. It regularly organises internal workshops in which new programming languages or frameworks are presented. The lecturers are experienced developers from within the company. They know the challenges and can give realistic examples[2].
Training off the job: External perspectives and specialisations
External seminars and online courses broaden professional and methodological horizons. Employees learn best practices from experts outside the company[6].
Large IT companies are establishing structured mentoring systems. These prepare junior staff specifically for management tasks. External coaches bring experience from other organisations. This helps to recognise blind spots and gain new perspectives[2].
Practical tools for effective employee competence development
KIROI Step 8 provides managers with specific tools. These proven methods can be used in a targeted manner. The right choice depends on the needs and objectives[2].
Coaching and mentoring as core processes
Individual coaching sessions help to recognise personal strengths and overcome challenges. An experienced mentor accompanies the employee over a longer period of time. This method not only promotes technical skills, but also soft skills and career development[5].
A peer feedback system was established in a service company with the help of KIROI Step 8.
BEST PRACTICE with one customer (name hidden due to NDA contract) Employees were able to provide each other with targeted support. This significantly improved collaboration and led to greater employee loyalty. People who give each other feedback also develop more understanding for each other. This creates a positive working atmosphere.
Job enrichment and job rotation
These tools give teams the opportunity to acquire new skills. The field of work is deliberately expanded. Job enrichment means deepening and expanding the current role. Job rotation means rotating through different positions[2].
The benefits are clear to see in the mechanical engineering sector. Technicians go through various production steps and later understand the entire value chain. This makes them better problem solvers[2].
Target-setting meetings and feedback cultures
In retail, managers are increasingly focussing on concrete target agreements with quantifiable results. This makes personal development measurable. Regular feedback creates transparency and supports continuous improvement[2][5].
A strong feedback culture is essential. Employees should not only have an annual appraisal once a year. Continuous dialogue about performance and development is necessary. Digital tools simplify this process and help to document learning progress[2].
Artificial intelligence as a supporter of employee competence development
Modern technology offers new possibilities. Artificial intelligence makes it possible to customise learning content. This means that personalised development programmes can be offered that are precisely tailored to the employee[8].
In the manufacturing industry, companies use AI-supported systems to automatically recognise training needs. This prevents under- or overstraining and increases motivation. The development of employee skills is thus precisely monitored[8].
Valuable practical examples can be seen in the IT sector: Employees automatically receive suggestions for programming languages and frameworks. These are based on analyses of the AI systems and future project requirements. This provides targeted support for development[8].
In the financial services sector, AI solutions often lead to improved transparency in career paths. Employees can clearly see which skills they need for which positions. This has a positive impact on employee retention[8].
Combining methodological expertise and professional competence
Employee competence development is not just about professional competence. Methodological competence is just as important. It describes the ability to apply suitable working techniques and analytical techniques[7].
A particular focus is on promoting presentation skills. Employees learn to present information in a structured, understandable and convincing way. They use suitable media to convey their content[7].
Methodological competence can be measured. The assessment is based on specific work results and behaviour. Managers ask themselves: How systematically are challenges tackled? Are goals achieved on time? How quickly are new methods adapted?[7]
The role of communication and feedback
A key aspect of successful employee competence development is open communication.
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