How to Create a Growth Plan for Every Employee
By VICKY BROWN
Why Small Businesses Need Employee Growth Plans
Growth plans aren’t just for those big corporations with fancy HR departments and big budgets. They’re actually perfect for small businesses and first-time leaders. In fact, I’d argue they’re even more vital in a small team environment.
Why? Because when you’re running a small business, every single person matters more. Each team member carries more weight, wears more hats, and has a bigger impact on your success. But here’s what often happens – we get so caught up in the day-to-day operations that employee development becomes an afterthought.
Let’s change that. Because when you invest in your employees’ growth, you’re actually investing in your business. People who feel they’re developing stay longer, work harder, and bring more value. And for you as the business owner, growth plans create structure and help you delegate more effectively.
What Is an Employee Growth Plan?
Simply put, a growth plan is a personalized roadmap for an employee’s development. It outlines where they are now, where they want to go, and the skills and experiences they need to get there. The beauty of a good growth plan is that it aligns your employee’s aspirations with your business needs. So, everyone wins.
How to Create Effective Employee Growth Plans: Step by Step
- Start with Role Clarity
What’s the purpose of this position in your business? What are the key responsibilities? What does success actually look like in this role over the next 6-12 months? Getting crystal clear about expectations is going to be the foundation of any good growth plan. And it makes sure you and your employee are on the same page from day one.
“…biggest mistake is creating plans without the employee’s input. This isn’t something you do TO them; it’s something you do WITH them.“
- Assess Current Skills
This doesn’t need to be complicated. Schedule a simple check-in conversation to discuss what they do well and where they could be stronger. You can use both their self-evaluation and your observations.
Pro tip: don’t overcomplicate this. Start with identifying just three strengths and three growth areas. That’s more than enough to work with.
- Discuss Career Goals
Ask open-ended questions about their interests. Do they want to move into leadership? Become a specialist in a particular area? Learn new tools or technologies? Even if they’re not 100% sure yet, just having the conversation builds trust and shows you care about their future.
- Set SMART Goals Together
With that foundation in place, you can set SMART goals together. That means Specific, Measurable, Achievable, Relevant, and Time-bound. For example, instead of “get better at Excel,” a SMART goal would be “Complete the beginner Excel course by May 15th and apply new skills to the monthly reporting process.”
Keep the goals small and achievable, especially in a small business environment where resources may be limited. It’s much better to accomplish three modest goals than to set ten ambitious ones that never happen.
- Create a Timeline
What needs to happen this quarter? What about this year? Add specific milestones and check-ins – monthly or quarterly works well for most small businesses. This creates accountability and momentum.
You could even bake this into the performance review process. But, just remember, performance goals are designed to make sure they’re performing in their current job – and growth goals are designed to make sure they progress in their career. So be thoughtful when you evaluate each.
- Identify Resources and Support
As a small business owner, you might be thinking, “I don’t have a big training budget.” That’s okay. There are plenty of free or low-cost options out there:
- YouTube tutorials
- LinkedIn Learning
- Professional books
- Industry webinars
Sometimes the best development happens through experiences rather than formal training – like shadowing you on client calls or taking the lead on a new project.
Whether you’re an entrepreneur jumping into a leadership role, a seasoned business pro with new HR responsibilities, or just starting your HR career – we’ve got the right path to guide you through your HR hurdles.
Check out the Leaders Journey Experience. This online education platform holds the LJE Masterclass, HR SimpleStart Academy and HR FuturePro Academy.
Not sure where to start – take the quiz!
- Connect Growth to Business Success
A vital step that so many managers miss – is tying growth to the business. You have to show your employees how their development directly contributes to the company’s success. For example: “If you master these design skills, we can bring that work in-house instead of outsourcing it, which means faster turnaround times for our clients and higher profit margins for us.” This type of connection creates purpose and motivation.
- Document and Review Regularly
Keep a simple growth plan document – Google Docs or Sheets works perfectly fine. Share it with the employee and revisit it regularly in your one-on-ones. This isn’t a “set it and forget it” process.
Common Mistakes to Avoid with Employee Growth Plans
The biggest mistake is creating plans without the employee’s input. This isn’t something you do TO them; it’s something you do WITH them. Their buy-in and ownership are essential.
Another mistake is making it too complicated or overwhelming. Start simple. A one-page plan with a few clear goals is so much better than an elaborate system that no one actually uses.
And perhaps the most common mistake? Ignoring the plan after that initial meeting. Growth is an ongoing process that requires regular attention and adjustment.
Key Takeaways for Small Business Owners
- Growth plans make your business more resilient by developing a more skilled, engaged team
- You don’t need a huge budget or fancy HR department to support meaningful employee development
- When your team grows, your company grows
- The small investment of time you put into growth plans today will pay dividends for years to come in retention, engagement, and capability
For small business owners and entrepreneurs, creating employee growth plans is one of the highest-leverage activities you can engage in as a leader. By investing in your team’s development, you’re not just helping them grow—you’re strengthening your entire business.
Spread the word
MORE HUMAN, MORE RESOURCES
310.308.7680 option 1
hello@idomeneoinc.com