How to identify employee training and development needs

Over two-thirds of UK businesses struggle with skill shortages, according to research from the British Chambers of Commerce. But often, the skills your business needs the most can be developed internally within the team you already have. Some of your employees might be ready to take on more responsibility for example, while others showing promise might just need a little extra support to help them pick up new capabilities.

This guide walks you through the practical ways you can identify employee training and development needs in your organisation, so you can help your people grow while giving your business the skills it needs to thrive.

 

Skip to:

• What are employee training and development needs?

• How employee training supports business growth

• How to identify employee training and development needs

• How to prioritise employee training

• Support your people’s development with Breathe

• FAQs about identifying employee’s training and development needs

 

What are employee training and development needs?

 

Employee training and development needs are the skills and knowledge your people need to do their jobs well and help your business achieve its goals.

 

• Training needs usually focus on what your business needs right now. For example, employees might need to learn a new software system or complete essential health and safety training.

• Development needs look further ahead, helping you prepare your people for the changing needs of your business. If you're planning to expand into a new area and need the support of an experienced team leader, for example, you might need to build management skills within your existing workforce rather than recruit externally. Development needs are normally discussed alongside your employees' own career ambitions. Someone who wants to take on more responsibility could be just the person to help your business take its next step.

 

 

How employee training supports business growth

 

When you're running a small business, finding the time and budget to run employee training programmes isn't always easy. But investing in the right skills can pay off and help both the employee and your business in gaining support to grow.

 

Employee training builds the skills your business needs

 

When you first realise your business needs new skills, it’s tempting to write a job ad and recruit someone with the relevant skill set. Before doing so, it’s worth looking internally first. Developing the people you already have could help you expand your services or take on new customers without the cost of recruiting additional staff. Remember that these are people who already know the ins and outs of how your business works, and with the right training, they could be ready to take on new responsibilities.

This is a popular approach, with 91% of employers already upskilling their existing workforce or considering doing so in the future, according to the CIPD's 2026 Resourcing and Talent Planning report.

 

 

 

Employee training can help you keep your best people

 

If your employees feel they've gone as far as they can in your business, they might start looking elsewhere for opportunities to learn and progress. Losing a valued employee means losing their experience and knowledge, as well as facing the cost of finding someone to replace them.

According to the same CIPD report, 44% of employers said that holding onto talent had become more difficult over the previous year. But among businesses that took steps to improve retention, 45% offered more learning and development opportunities.

Giving your people the chance to build new skills and work towards their career goals can help them see a future with your business. It's a way to show you value their contribution and want them to stick around.

 

Employee training makes the most of your people’s potential

 

You might be surprised by what some of your team could contribute if they had the opportunity. According to the CIPD's Good Work Index 2025, three in 10 UK employees feel overqualified for their current role, while a third believe they already have the skills to handle more demanding responsibilities.

Getting to know your employees' interests and hidden talents could help you spot opportunities to develop their skills further. Perhaps someone on your team enjoys photography in their spare time. With a little training in product photography, they could start creating professional-looking images for your website, giving them a chance to develop a hobby into a valuable skill for your business. As an added bonus, they already know your business and understand what you’re trying to achieve.

 

How to identify employee training and development needs

 

You don't need a complicated process to identify training needs or work out where to focus your efforts. The following steps will help you plan training that works across your business.

 

1. Start with your business goals

 

Where would you like your business to be in a year or two? Perhaps you've got exciting plans for growth, or you'd simply like things to run a little more smoothly. Whatever you're working towards, it's worth asking the following questions to understand how your team can help you get there and what they might need to learn along the way.

 

• Are you planning to expand your business?

• Will you introduce new products or services?

• Are you hoping to attract different customers?

• Will your employees need to take on new responsibilities?

 

Example: If you're planning to open a second branch of your business, could someone from your existing team take on the role of manager? A little leadership training now could help them feel ready to take the reins when the time comes.

 

2. Review the employee skills needed for each role

 

As your business grows and changes, people's responsibilities can change too. It's always worth checking that each role reflects what your business needs today. You can then carry out simple skills assessments to compare what employees need to know with their current skills.

You don't need anything complicated to get started. Just ask yourself:

 

• Are your job descriptions up to date?

• What skills does each role require?

• Have any responsibilities changed?

• Do employees have the skills they need?

 

Example: Perhaps your receptionist has started helping with your business's social media accounts. If this is becoming a regular part of their job, some social media training could help them feel more confident and get better results for your business.

 

3. Ask employees what they’d like to learn

 

Your employees probably have a few ideas of their own about where they'd like to develop. A regular one-to-one or an informal chat can be a great opportunity to ask questions like:

 

• Which parts of your job do you find challenging?

• What would you like to get better at?

• Are there specific hard or soft skills you'd like to learn?

• Is there anything you'd like to try?

 

Example: One of your employees might mention they'd love to learn more about bookkeeping. If you're spending hours each month managing invoices yourself, some basic finance training could give them a chance to develop while taking a little work off your plate.

 

4. Use performance conversations to spot opportunities

 

Regular performance conversations are a great way to understand how your employees are getting on and where they might benefit from extra training. Along with being a great chance to address any problems, these chats can also help you recognise when someone's ready for a new challenge. Here are a few things to consider:

 

• Is anyone struggling with certain tasks?

• Have you noticed changes in performance?

• Who regularly exceeds expectations?

• What feedback have managers shared?

 

Example: Perhaps someone on your sales team consistently exceeds their targets and seems ready to take on more responsibility. A conversation about their career ambitions could be the first step towards helping them develop their management skills.

 

For more guidance on getting the most out of performance conversations, our free Performance Management for Line Managers course can help your managers build their confidence in giving feedback and supporting employee development.

 

 

 

5. Check which training employees need to complete

 

Some employee training is essential for keeping your people safe and meeting your legal responsibilities, while certain staff might need to take other courses for particular jobs or professional qualifications. To meet your responsibilities as an employer, check:

 

• What training does each role require?

• Who has completed their training?

• Are any certificates due to expire?

• Have new starters received the training they need?

 

Example: If you run a restaurant, employees who handle food will need appropriate food hygiene training. Checking everyone's training records can help you identify who needs additional instruction, especially if they've recently taken on new responsibilities.

 

 

6. Agree on personal development goals

 

Once you've decided where your employees could benefit from training, sit down together and agree on a training plan that supports their goals. It's important that you're both happy with the plan and feel clear about what should happen next. Here are a few questions to work through together.

 

• What would they like to achieve?

• Which learning opportunities would help?

• What support can your business offer?

• When will you review their progress?

 

Example: An employee who's interested in becoming a supervisor could start by shadowing their manager for a few hours each week. You could then agree on a goal for them to lead a team meeting or take responsibility for a small project.

 

7. Review your employee’s progress and keep the conversation going

 

Once your employees have completed their training, make time to check in and see how they're getting on. Regular catch-ups are a great opportunity to celebrate their progress and find out whether the training has made a difference to their day-to-day work. You can also use these conversations to plan their next steps:

 

• What have they learned?

• Have they used their new skills at work?

• Do they feel more confident?

• Would any further support help?

 

Example: If an employee has completed training on your new booking system, catch up with them after a few weeks. Are they finding it easier to manage appointments? Could they help colleagues get to grips with the software? Their feedback might even help you plan training for the rest of your team.

 

How to prioritise employee training

 

Once you've identified all of your employees' training needs, you might find you've got quite a list. But with a small business to run and a limited training budget, you probably can't tackle everything at once.

A good place to start is by looking at which of your training efforts is most urgent and where it could make the biggest difference to your business. Here's a simple way to decide what to focus on first.

 

 

Support your people’s development with Breathe

 

Helping your employees learn and grow is an important part of running a successful business. But when you've already got plenty on your plate, finding time for regular development conversations and keeping track of everyone's training can feel like another job in itself. That's where Breathe can lend a hand.

With Breathe Performance, you can keep employee development on the agenda throughout the year. Set goals together, record performance reviews and use regular one-to-ones to check how your people are getting on. It's a handy way to keep those conversations going, rather than waiting for an annual appraisal.

And when it's time to arrange formal training, Breathe Learn makes things easier by giving your employees access to over 100 online courses covering workplace topics. Within the same platform, you can assign learning and keep track of who's completed their training. You can also view learning records and certificates in one place, helping you stay organised as your team grows.

Together, Breathe Performance and Breathe Learn help you support your people's ambitions while keeping on top of the training your business needs. Ready to give your people room to grow? Try Breathe for free.

 

 

 

FAQs about identifying employee’s training and development needs

 

What is a “training needs analysis”?

A training needs analysis is a way of identifying which skills your employees need to develop to do their jobs well and support your business goals. The analysis looks at the skills required for each role, then reviews employees' current abilities and helps you decide where additional training could help.

 

What are some examples of training needs?

Examples of employee training needs include learning to use AI, improving customer service skills, completing health and safety training or developing management skills. The training your employees need will depend on their roles and existing abilities as well as what your business hopes to achieve.

 

How often should you review employee training needs?

You should review employee training needs regularly, ideally during one-to-ones and performance reviews. Regular conversations help you identify new training needs before they become bigger problems. It's also worth checking training needs again if your employees change roles or responsibilities.

 

What’s the difference between training and development?

The difference between training and development is their focus. Employee training usually helps people gain the skills they need for their current jobs, such as learning a new system. Employee development looks further ahead, helping people prepare for future responsibilities or work towards their career goals.

 

Is employee training mandatory?

Yes, some employee training is mandatory under UK law. The Health and Safety at Work Act 1974 requires employers to provide appropriate information and training to keep their people safe at work.

The Management of Health and Safety at Work Regulations 1999 also require employers to provide appropriate training when employees start work or face new health and safety risks.

There are other legal responsibilities to consider, too. From 30 October 2026, the Employment Rights Act 2025 strengthens employers' duty to take all reasonable steps to prevent sexual harassment at work. Although the law doesn't make a specific training course compulsory for every business, sexual harassment prevention training can be an important part of meeting your responsibilities.

Depending on your industry, there may be additional training needs. For example, financial services firms regulated by the Financial Conduct Authority (FCA) must make sure employees have the necessary skills and knowledge to carry out their roles competently. Certain roles also have specific qualification or ongoing professional development requirements.

Remember, not all employee training is compulsory, but it's worth checking what applies to your business so you can plan ahead.