Ethics | Nous

Ethical Approach in the corporate decision-making process in regards to employees.

By Dionysios Prodromitis

An ethical approach in corporate decision-making concerning employees is crucial for fostering a positive work environment, ensuring fair treatment, and upholding the dignity and rights of all individuals within the organization.

The perspective of this philosophical article about ethics in the corporate decision-making process is focused on employees more than the business. Aristoteles said: ‘’Businesses are self-created mini societies geared to one goal, which in turn serves larger goals, which in turn serve the state and society as a whole’’. Let’s see a company as a society, we must consider the possibility that one of the employees, is not happy with the environment and the pressure from the workplace (society) to bring more results. What do we have to do to fix the issue, how do we approach the issue, and what is the ethical strategy we need to follow?

In this article, we focus on Employee development programs, because employee development programs are crucial for maintaining engagement, developing an internal talent pipeline, and retaining top talent. Investing in employee development attracts high-quality candidates by demonstrating that the company values growth and professional development. There are many benefits to implementing incentive structures, such as increased job satisfaction, motivation, teamwork, communication, and loyalty to your business. It may also bring forth disadvantages in that employees can feel pressured to achieve unrealistic goals and resort to unethical behaviour disadvantages in that employees can feel pressured to achieve unrealistic goals and resort to unethical behaviour to meet targets.

Here are specific ways companies can integrate ethical considerations into their decisions regarding employees.

Fair Employment Practices:

Equal Opportunity: Ensuring equal opportunities for all employees regardless of race, gender, age, religion, sexual orientation, or other protected characteristics.
Diversity and Inclusion: Promoting a diverse and inclusive workplace that values differences and fosters a sense of belonging.

Fair Compensation and Benefits:

Living Wage: Providing employees with a wage that enables them to meet basic living expenses.

Benefits: Offering fair benefits including healthcare, retirement plans, and paid leave to support employees’ well-being and work-life balance.

Workplace Safety and Well-being:

Health and Safety: Ensuring a safe working environment and taking measures to protect employees’ physical and mental health.
Work-Life Balance: Promoting policies that support a healthy balance between work and personal life, such as flexible working hours and remote work options.

Employee Development:

Training and Education: Providing opportunities for skill development, training, and education to enhance employees’ capabilities and career growth.
Mentorship and Support: Offering mentorship programs and supportive environments for employees to thrive and advance in their careers.

Respect and Dignity:

Anti-Discrimination: Implementing strict policies against discrimination, harassment, and bullying in the workplace.
Privacy: Respecting employees’ privacy rights and ensuring confidential information is protected.

Communication and Transparency:

Open Communication: Encouraging open dialogue between employees and management, allowing employees to voice concerns and ideas without fear of retaliation.
Transparency: Being transparent about company decisions that affect employees, such as layoffs, restructuring, or policy changes.

Ethical Leadership:

Empathy: Leaders demonstrating empathy and understanding towards employees’ concerns and challenges.

Integrity: Leaders acting with integrity, honesty, and fairness in all interactions with employees.

Conflict Resolution:

Fair Grievance Procedures: Establishing fair and transparent procedures for addressing employee grievances and conflicts.
Mediation: Providing mediation services to resolve disputes amicably and fairly.

Whistleblower Protection:

Protection: Safeguarding employees who report unethical or illegal activities within the organization from retaliation.
Anonymous Reporting: Allowing employees to report concerns anonymously to encourage reporting without fear.

Employee Involvement:

Participation: Involving employees in decision-making processes that affect their work environment, when applicable.
Feedback: Seeking regular feedback from employees through surveys or other means to understand their needs and concerns.

Business owners need teams that continue to innovate and grow to remain successful. Hiring top talent is essential to growing your organization, but promoting internally is just as critical and can be a win-win for you and your employees who want to move up within your organization.

Investing in employee development is one of the best ways to ensure your organization continues to evolve. The right professional development plans can equip your current employees with new skills and experiences that prepare them for leadership roles within your company. They can move up, and you can focus on hiring entry-level employees.

In this article, we'll explain why your organization needs to invest in employee development, why professional development matters to your employees, and how you can support your development efforts through employee benefits.

What is employee development?

Employee development is the process of supporting your employees' professional development through leadership training, learning opportunities, or hands-on experience. It also involves making your employees feel appreciated and supported so they can continue to grow in the workplace. Employee development activities can help workers establish career goals, develop new soft skills, and provide new opportunities for advancement at your organization.

Employee development refers to the process of investing in employees' skills, knowledge, and abilities to improve their performance and effectiveness in the workplace. It is a strategic initiative undertaken by organizations to enhance the personal and professional growth of their employees. Employee development programs aim to help individuals acquire new skills, expand their knowledge base, and improve their attitudes and behaviours, making them valuable assets to the company. Employee development can take various forms, including training programs, workshops, mentoring, coaching, online courses, seminars, and higher education opportunities. These initiatives are tailored to the specific needs of employees and the organization, ensuring alignment with business goals and objectives.

Key aspects of employee development include:

Training and Skill Development: Providing employees with training sessions and workshops to enhance their technical, job-specific, and soft skills. This could include training in new technologies, software applications, customer service, leadership, and communication skills.

Education Assistance: Supporting employees in pursuing higher education, such as degree programs, certifications, or specialized courses related to their field. Some organizations offer tuition reimbursement programs to encourage continuous learning.

Mentoring and Coaching: Pairing employees with experienced mentors or coaches within the organization. These mentors provide guidance, share knowledge, and offer support, helping employees navigate their careers more effectively.

Leadership Development: Offering leadership training programs to prepare employees for leadership roles within the organization. These programs focus on skills like decision-making, strategic thinking, team management, and effective communication.

Career Path Planning: Assisting employees in identifying their career goals and creating a plan to achieve them. This includes providing opportunities for job rotations, cross-functional experiences, and exposure to different roles within the organization.
Performance Feedback: Providing regular feedback on employees' performance, strengths, and areas for improvement. Constructive feedback helps employees understand their development needs and areas where they can focus their efforts.

Skill Assessment and Development Plans: Assessing employees' skills and competencies to identify areas for improvement. Based on these assessments, personalized development plans are created to address specific skill gaps.

Soft Skills Development: Focusing on developing essential soft skills such as communication, teamwork, problem-solving, adaptability, and emotional intelligence. These skills are crucial for effective collaboration and leadership.

Workshops and Seminars: Organizing workshops, seminars, and conferences on topics relevant to the employees' roles or the industry. These events provide exposure to new ideas, industry trends, and best practices.

Cross-Functional Collaboration: Encouraging employees to collaborate with colleagues from different departments or teams. This cross-functional interaction promotes the exchange of knowledge and ideas, fostering a culture of continuous learning.

Overall, employee development initiatives are essential for enhancing employee engagement, improving performance, increasing retention rates, and ensuring that employees remain competitive and capable in their respective fields. By investing in employee development, organizations create a skilled and motivated workforce that contributes significantly to the company's success.

How does employee development affect employees?

Improving your employees' skills and experiences helps create a more motivated workforce. Your employees can become more productive at work, helping you reach your goals.

When your employees feel appreciated and supported thanks to your employee development activities, they'll have higher job satisfaction. This can lead to improved employee retention.

Most importantly for your employees, providing them with tools and access for personal development helps them achieve their personal career goals, including moving up in your organization.

Many employees feel that professional development is essential to reaching their full potential. According to a survey from ClearCompany1, 74% of employees said a lack of employee development activities keeps them from their full potential in the workplace.

Failing to provide career progression for your employees can result in them leaving your organization for one that offers more career growth opportunities.

How does employee development impact your organization?

When you take employee development seriously, you’ll notice positive changes in your organization.

Increased Productivity and Performance: Well-trained employees are more skilled and efficient in their roles. This increased competence leads to higher productivity and improved performance, directly impacting the organization's bottom line.

Higher Employee Satisfaction and Retention: Employees appreciate organizations that invest in their growth. When employees see opportunities for development, they are more likely to stay with the company, reducing turnover rates. High retention rates save the organization costs associated with recruitment, training, and lost productivity due to frequent turnover.

Enhanced Innovation and Creativity: Continuous learning encourages innovative thinking. Employees exposed to new ideas and experiences are more likely to come up with creative solutions to problems, which can give the organization a competitive edge.

Improved Quality of Work: Skilled and motivated employees produce higher quality work. Investing in their development ensures that the organization delivers better products or services to customers, enhancing the company's reputation and customer satisfaction.

Adaptability to Change: In rapidly changing industries and markets, employees need to adapt to new technologies and methodologies. Continuous development programs ensure that employees are up-to-date with the latest trends and can adapt swiftly to changes, making the organization more agile.

Leadership Development: Employee development programs often include leadership training. Nurturing leadership skills among employees ensures a pipeline of capable leaders within the organization, fostering a strong management team for the future.

Positive Company Culture: A focus on development creates a positive company culture. When employees see that their growth is valued and supported, it fosters a sense of loyalty and commitment to the organization. This positive atmosphere can enhance teamwork and collaboration among employees.

Customer Satisfaction: Well-trained employees provide better customer service. Satisfied and knowledgeable employees can engage effectively with customers, leading to higher levels of customer satisfaction and loyalty.

Cost Savings: While there is an initial investment in employee development, in the long run, it can lead to significant cost savings. Skilled employees are more efficient, make fewer errors, and require less supervision, reducing operational costs.

Compliance and Ethics: Training programs often include education on organizational policies, industry regulations, and ethical standards. Properly trained employees are more likely to adhere to these guidelines, reducing the risk of legal issues and ensuring the organization operates ethically.

Encourages growth

By providing your employees with career advancement and development opportunities, you'll ensure your current workforce continues to grow. This will allow your organization to stay ahead of industry trends. By continuing to grow your workforce's skill sets, your organization can innovate and become an industry leader. This can lead to better business outcomes.

If your employees become highly skilled and specialized, your organization has a greater competitive advantage.

Skill Enhancement: Development programs provide employees with opportunities to acquire new skills or improve existing ones. Whether it's technical skills, soft skills, or leadership abilities, continuous learning enhances an individual's skill set, making them more proficient in their current role and more versatile for future positions.

Career Advancement: Employees who participate in development programs are often more prepared for promotions and career advancements. These programs provide the necessary knowledge and skills required for higher-level positions within the organization, enabling employees to climb the career ladder.

Increased Confidence: Mastering new skills and knowledge boosts an employee's confidence. Confident employees are more likely to take on challenges and responsibilities, leading to personal and professional growth. This confidence often translates into improved performance and leadership capabilities.

Adaptability: Development programs help employees stay updated with industry trends, technological advancements, and best practices. This knowledge equips them to adapt to changes in the workplace and industry, fostering a growth mindset and a willingness to embrace new challenges and opportunities.

Networking: Training sessions, workshops, and seminars provide employees with opportunities to network with colleagues, industry experts, and mentors. Networking fosters personal growth by exposing employees to diverse perspectives and opening doors to collaborative opportunities and mentorship.

Entrepreneurial Thinking: Some development programs encourage employees to think like entrepreneurs. By understanding business concepts and market trends, employees may identify new opportunities for the organization or even consider starting their ventures, promoting a spirit of entrepreneurship and innovation.

Personal Development: Development programs can extend beyond professional skills to include personal development aspects such as time management, stress management, and communication skills. These skills not only improve workplace performance but also enhance an individual's overall quality of life.

Leadership Development: Leadership training programs are essential for employees aspiring to leadership roles. These programs cultivate essential leadership qualities such as decision-making, strategic thinking, and effective communication, fostering personal growth and preparing employees for leadership positions.

Encouragement of Lifelong Learning: Employee development initiatives often instil a love for learning. When employees are encouraged to engage in continuous learning, they are more likely to pursue further education and certifications, leading to continuous personal and professional growth throughout their careers.

Prevents skill shortages

Investing in your employees can reduce any skills shortages you might face. These investments are especially important in highly skilled environments like the technology and manufacturing sectors. This allows your employees who already understand your company culture, goals, management, and products to move up to specialized positions rather than focusing your resources on hiring someone from the outside.

Preventing skill shortages is crucial for corporations to ensure they have the right talent to meet current and future demands. Here are several examples of how corporations can proactively address potential skill shortages:

Internal Training and Development Programs: Establishing robust internal training programs to upskill existing employees. This can include workshops, seminars, online courses, and certifications to enhance employees' skills and prepare them for future roles within the company.

Succession Planning: Identifying high-potential employees and creating a succession plan. By grooming current employees for key positions, corporations ensure a pipeline of skilled talent for critical roles, reducing the impact of skill shortages due to turnover or retirement.

Partnerships with Educational Institutions: Collaborating with universities, colleges, and vocational schools to design curriculum and programs that align with the skills the corporation needs. These partnerships can also include internship and apprenticeship programs, providing students with real-world experience while preparing them for specific roles within the corporation.

Talent Pipelining: Actively sourcing and building relationships with potential candidates even before positions become available. By maintaining a pool of pre-qualified candidates, corporations can quickly fill skill gaps when they arise.

Cross-Training Employees: Encouraging employees to acquire skills beyond their primary roles. Cross-training ensures that employees have a broader skill set, making it easier to shift them into different roles if necessary.

Flexible Work Arrangements: Embracing remote work and flexible schedules allows corporations to tap into a global talent pool. By hiring skilled professionals regardless of their location, corporations can access a wider range of expertise.

Employee Retention Strategies: Creating a positive work environment, offering competitive salaries, and providing attractive benefits and career development opportunities. Satisfied employees are more likely to stay with the company, reducing the risk of skill shortages due to high turnover.

Continuous Skills Assessment: Regularly assessing employees' skills and identifying gaps. This helps in designing targeted training programs and ensures that the workforce's skills remain aligned with the company's needs.

Lifelong Learning Culture: Fostering a culture of continuous learning where employees are encouraged and supported to pursue further education and professional development. This can include providing educational stipends or paid study leaves.
Utilizing Technology: Implementing technology solutions like AI-driven HR platforms and analytics to identify skill gaps in real-time. Predictive analytics can help corporations anticipate future skill needs and take proactive measures.

Employee Referral Programs: Encouraging employees to refer skilled candidates for open positions. Current employees often have networks in the industry and can help identify potential candidates with the required skills.

By employing a combination of these strategies, corporations can effectively prevent skill shortages, ensuring they have a skilled and adaptable workforce to meet their business objectives.

Reduces employee turnover and increases job satisfaction

Employee development programs also reduce your employee turnover rate. That's because employees value professional growth. According to Zippia2 research, 45% of employees would stay at a company longer if it invested in their learning and development. Additionally, our 2022 Employee Benefits Survey Report found that 61% of surveyed employees value professional development benefits in the workplace. However, only 40% of employers offer them.

Establishing a development program will give you a competitive advantage in hiring and allow you to better attract and retain employees. Employee satisfaction is good for business. When your employees are happy, they’re more likely to give their best effort each day and stick around for the long haul.

Investing in employee development can significantly reduce employee turnover and increase job satisfaction within an organization. Here's how:

Career Advancement Opportunities: Providing opportunities for skill development and career advancement signals to employees that the organization is invested in their future. When employees see a clear path for growth within the company, they are more likely to stay and build their careers there.

Increased Job Satisfaction: Employees who feel valued and supported in their professional growth are generally more satisfied with their jobs. Knowing that their employer cares about their development fosters a positive work environment and a sense of loyalty.

Recognition and Appreciation: Training and development programs are a form of recognition. They show employees that their skills are valued, and their contributions are essential to the organization's success. Recognized employees tend to be more satisfied and engaged in their work.

Enhanced Skills and Confidence: Development programs enhance employees' skills and boost their confidence in performing their roles effectively. Competent and confident employees are more satisfied in their jobs as they experience a sense of achievement and mastery.

Improved Work-Life Balance: Training programs that enhance efficiency and productivity can help employees manage their tasks more effectively, leading to an improved work-life balance. Employees who can balance their professional and personal lives tend to be more satisfied with their jobs.

Personal Development: Employee development programs often include personal development components, such as communication and leadership skills. These skills not only enhance job performance but also contribute to personal growth, increasing overall job satisfaction.

Stronger Employee-Employer Relationship: Investment in employee development demonstrates that the employer values its employees as individuals, not just as workers. This strengthens the relationship between employees and the organization, leading to higher job satisfaction and reduced turnover.

Increased Engagement: Engaged employees are those who are enthusiastic about their work and are emotionally committed to the organization's goals. Development opportunities keep employees engaged and motivated, leading to higher job satisfaction and lower turnover rates.

Sense of Stability: Knowing that their skills are being continually developed provides employees with a sense of stability and job security. This sense of security enhances job satisfaction and reduces the likelihood of employees seeking opportunities elsewhere.

Positive Company Culture: A commitment to employee development fosters a positive company culture. When employees are satisfied and engaged, it creates a supportive atmosphere where teamwork and collaboration thrive, further enhancing job satisfaction and reducing turnover.

In summary, investing in employee development not only improves skills and knowledge but also creates a positive work environment where employees are satisfied, engaged, and motivated to stay with the organization, reducing turnover rates and contributing to long-term success.

How to create an employee development program

If you're thinking about launching employee development opportunities for your organization, you'll need to consider the unique needs of your organization and your employees. This ensures you’ll tailor your employee development activities to match your industry and your employees’ current skills.

Think about the skills critical to your industry. How can you create a robust employee development program that caters to all learning styles, preferences, and skill levels? If your program doesn't appeal to your employees, they'll lose interest in it, preventing them from developing these valuable skills.

Creating an effective employee development program involves careful planning, clear objectives, and a commitment to supporting your employees' growth. Here are the steps you can follow to create a successful employee development program:

1. Assess Organizational Needs:

Identify Goals: Determine the organization's overall objectives and align the employee development program with these goals.
Skills Gap Analysis: Identify the skills and knowledge gaps within your workforce. Conduct surveys, assessments, or performance reviews to understand areas that need improvement.

2. Set Clear Objectives:

Define Learning Outcomes: Clearly define what employees are expected to learn or achieve through the development program.
Specific Goals: Set specific, measurable, achievable, relevant, and time-bound (SMART) goals for individual employees or departments.

3. Design the Program:

Content Development: Develop or curate training materials, modules, workshops, or courses that address the identified skill gaps.
Various Learning Methods: Include diverse learning methods such as in-person workshops, online courses, mentorship programs, on-the-job training, and conferences to cater to different learning styles.
Interactive and Engaging: Make the program interactive and engaging with activities, discussions, case studies, and practical exercises.

4. Implementation:

Training Delivery: Implement the program using a mix of internal trainers, external experts, and online platforms. Consider blended learning approaches combining in-person and online training.

Scheduling: Plan the training schedule to minimize disruptions to regular work. Consider offering flexible timings or staggered training sessions.

5. Employee Participation:

Voluntary Participation: Encourage voluntary participation to ensure employees are motivated and willing to learn.
Clear Communication: Clearly communicate the benefits of the program, how it aligns with their career growth, and the support they will receive.

6. Feedback and Evaluation:

Feedback Mechanism: Implement a feedback system where employees can provide feedback on the program content, trainers, and overall experience.
Continuous Evaluation: Regularly assess participants' progress and adjust the program based on feedback and changing organizational needs.

7. Support and Resources:

Resource Allocation: Allocate necessary resources such as budgets, time, and technology to facilitate the program effectively.
Mentorship: Provide mentorship or coaching support to employees, allowing them to discuss their progress, challenges, and career goals.

8. Recognition and Rewards:

Recognition: Acknowledge and reward employees who actively participate and excel in the development program. This recognition can be in the form of certificates, awards, or other incentives.
Career Advancement: Link the successful completion of development programs with career advancement opportunities within the organization.

9. Long-Term Development:

Continuous Learning Culture: Foster a culture of continuous learning where employees are encouraged to pursue further education and professional development even after the formal program ends.
Skill Updates: Regularly update the program to address evolving skill requirements and industry trends.

10. Measure Impact:

Key Performance Indicators (KPIs): Define KPIs to measure the program's impact, such as improved productivity, reduced errors, increased employee satisfaction, or career advancement rates.
Surveys and Assessments: Conduct post-training surveys and assessments to gather feedback on the program's effectiveness and areas for improvement.

11. Iterate and Improve:

Data-Driven Decisions: Use the feedback and performance data to make data-driven decisions for future program improvements.
Continuous Improvement: Continuously iterate the program based on feedback, changing organizational needs, and technological advancements.

By following these steps and maintaining a focus on employee growth and engagement, your organization can create a robust and successful employee development program that benefits both the employees and the organization as a whole.

Few steps you can take to create robust employee development plans that promote longer-term employee retention.

Evaluate your goals

First, you'll need to consider your goals for the program. Is your primary goal to reduce employee turnover by offering additional perks, or to help your employees grow into their roles and advance in the organization?

You'll also need to consider how your program relates to your long-term goals and business strategies.

Once you have an idea of your goals and objectives for the program, you can start designing the individual employee development activities.

Provide a wide variety of development opportunities

Next, you'll want to ask your employees what skills they'd like to develop to help them with their career paths and current positions. You should also ask about their preferred format for these activities and opportunities.

Skills that your program might address include:

Communication skills
Project management skills
Leadership skills
Cross-training with other departments
Training on advanced tools and programs

If only a few employees have an interest in learning a specific skill, you can purchase an online course or include on-the-job training if possible. If several of your employees are interested, consider seminars or lunch-and-learns to reduce costs.

Your program should accommodate all types of learning and unique employee needs to attract and retain employees successfully. You may need to offer a combination of classes, seminars, online courses, and hands-on training.

Your program might include:

Mentorship opportunities
Job shadowing with co-workers
Seminars and lunch and learns
Online courses
Project rotation and job enrichment

Additionally, you'll need to provide your employees with the opportunity to take on tasks or switch roles that help them grow their skills and find value in their work. By focusing on employee growth, you'll continue to boost company loyalty and promote a culture of learning.

Offer employee-specific training

While your employee development activities will go a long way toward creating an engaged workforce, you won't be able to touch on every aspect of professional development. That's where personalized, employee-specific training comes in.

By listening to your employees' constructive feedback on their work, what interests them the most, and what their professional goals are at your organization, you can better tailor tasks and opportunities for each employee.

Encourage your employees and their direct managers to meet regularly to discuss their career plans and opportunities for trying new skills or tasks. This can lead to greater employee performance and engagement.

How employee benefits can help you invest in your employees

Establishing employee development programs can take a lot of time and valuable resources. While there's no replacement for hands-on training with co-workers or job enrichment tasks, there are easier ways to provide your employees with professional development opportunities, including providing access to online courses and tools.

If you want your employees to have more ownership over their development, you can offer them personalized benefits to support their self-directed efforts.

For example, you can offer a taxable continuing education employee stipend that allows you to reimburse employees for education-related expenses, such as online courses, college classes, and textbooks.

Additionally, a professional development stipend encourages continuous learning and professional growth. Your employees can put this money toward online learning platforms, conferences, career coaching, and professional memberships or associations. These professional development opportunities can close skill gaps and help your employees reach their career goals.

You could also offer your employees a tax-free education fringe benefit for their college courses to help them improve their skills and qualifications for specialized roles within your organization.

This allows you to focus on growing your organization and aligning tasks with employees' career goals while they can choose how to leverage their benefits to support their growth.

Other benefits that can boost the employee experience

Education benefits aren’t the only way to show that you care about your employees' growth and happiness. Other types of personalized benefits can help you better support your employees, enabling them to focus on their work and talent development, and encouraging them to stay at your organization instead of leaving for a competitor.

Personalized health benefits such as a health reimbursement arrangement (HRA) or health stipend allow you to reimburse your employees for their qualifying medical expenses up to a monthly allowance amount that you define. This not only helps you retain your employees, but it helps them live healthier, reducing the number of times employees are out sick.

A wellness stipend can reimburse employees for their wellness expenses, such as gym memberships, home exercise equipment, devices and wearables, and mobile apps.

With health and wellness benefits, your employees can focus more of their time on advancing their careers and growing their skills without worrying about their health and wellness expenses.

A remote work stipend can be an attractive benefit if you have employees who work from home. This allows you to reimburse your employees for their home internet access costs, cell phone bills, and home office setup costs, including any tools necessary for their role.

You can also offer your employees meal allowances. They could spend this money on takeout, delivery, or groceries. A Grubhub survey3 found that 60% of employees equate company-provided food with feeling more valued and appreciated.

Offering a variety of employee benefits alongside your employee development program is a great way to ensure that your employees stay satisfied with their work.

Conclusion

Employee development is a great way to improve the overall skill set of your organization while promoting employee engagement and reducing turnover. By investing in your skilled employees, you'll be able to reduce recruitment costs and better achieve your business goals.

To ensure your employees remain engaged, you'll need to offer more than just continuing education benefits. If you're interested in expanding your benefits package.