How to Create an Individual Development Plan

Employees look for workplaces where their long-term development is supported and encouraged. The trouble is, knowing how to achieve and support that development is difficult without a clear roadmap. Enter: the individual development plan.

This document helps plan for, facilitate, and evaluate employee growth in a way that aligns employee pathways with organisational priorities. So how do you build one that works?

Get up to speed easily with this Australian guide covering the essentials, along with some individual development plan examples.

What is an Individual Development Plan?

An individual development plan, or IDP, is a structured document that outlines an employee’s career goals and the skills and steps to help reach those goals. 

An IDP is developed in a collaborative process between the employee and their manager, and it’s an iterative document; it can evolve over time as the employee gains new capabilities and advances their goals. IPDs are widely used across the private sector, within government departments and in not-for-profits. 

Who is an Individual Development Plan For?

An individual development plan is primarily focused on the employee. It helps to ensure they have access to the relevant training, support and opportunities they’ll need to reach their goals and follow their desired career pathway. 

An effective IDP can be just as beneficial for the employer as well, and can lead to improved employee engagement, retention and productivity. 

Did you know?

Organisations that make a strategic investment in employee development report 11% greater profitability and are twice as likely to retain their employees, according to Gallup research. Meanwhile, LinkedIn research shows that 94% of employees would stay at a company longer if it invests in their career.

Key Components of an Individual Development Plan

At its essence, an individual development plan covers what the employee wants to achieve, along with the paving stones to get there. While the structure varies depending on the employee’s career stage or focus, here are the core elements that an IDP will typically include:

• Key details: These include the employee’s name, their job title and department, their Manager or Supervisor’s name, and start and review dates for the plan.

• Current self-assessment:This can include current skills, strengths, and weaknesses or opportunities to improve. 

• SMART career goals: These will ideally include short-term and long-term goals that are Specific, Measurable, Achievable, Relevant, and Time-bound.

• Development activities: These are actionable tasks that will get the employee closer to their goal, such as training or stretch assignments. 

• Required support and resources: This will include anything required by the employer, such as tools, learning and development programs, software, manager involvement, or funding.

• Timeline: The overall timeframe will ideally include milestones, making it easier to track progress and maintain momentum. 

• Success measures: These will help to assess what success looks like over time.

What an Individual Development Plan Isn’t

It’s important to make this distinction to understand the context of an IDP. While performance appraisals are backwards-focused, and performance improvement plans are reactive, an IDP is focused solely on future development. All three formats play useful roles in modern talent development.  

How to Create an Individual Development Plan: A Step-by-Step Guide

So, how do you actually develop an IDP together with an employee?  Let’s walk through each step of creating an effective plan.

‍1. Start with a Self-Assessment

This initial step can take place ahead of the collaborative meeting using a self-assessment document or with prompts from the manager or HR professional. 

The employee reflects on their current skills, work style, what motivates them, what challenges them, and where they see themselves progressing next. Meanwhile, the manager or HR professional can bring insights on current needs, future opportunities, and any known capability gaps for the team or organisation.  

‍2. Identify Development Goals

The next step is to meet and focus on the employee’s ambitions, considering how these will align with current and future role requirements and organisational priorities. This step is best led by the employee, with input from the manager or HR professional. 

Together, the objective is to define three to four clear, SMART goals that balance immediate skill building with longer-term development. 

‍3. Assess Current Skills and Identify Gaps 

This step clarifies the capabilities the employee will need to build to achieve their goals. The employee might self-identify areas where they could use more training or support, such as leadership, technical skills, communication or collaboration. The manager or HR professional might also have suggestions based on their workforce analysis. 

‍4. Agree on Development Activities 

What are the actual activities that will help close those skill gaps? An effective approach could include a mixture of formal and informal learning tasks, and encompass a wide range of methods including training, coaching, accreditation, conferences or networking, on-the-job stretch challenges or mentorships. 

It’s important to consider realistic timeframes and relevant budgets while setting out these development activities.‍

5. Set a Timeline

It’s easier to navigate a long roadmap when it’s broken into smaller checkpoints. Together, the employer and manager should set out realistic milestones along the long-term timeline. These can be aligned with the organisation’s performance review cycle, whether that’s on an annual, biannual or other basis. 

‍6. Set Measurement Methods

It’s helpful to pair key milestones with clear metrics to gauge progress. These methods could include any combination of performance metrics, behavioural indicators, activity completion, feedback, self-reflection, or skill assessments.

‍7. Document the Plan

Unless your organisation has a more structured process, the employee will typically write up their own IDP following the meeting in a simple supplied format. The completed plan will provide a useful document for both employee and employer to refer back to over time.

‍8. Review Regularly 

Remember that IDPs evolve. Managers or HR professionals can schedule regular check-ins, whether that’s monthly or quarterly, to assess progress and adjust details as needed with the employee. The IDP process works best when both parties are engaged and transparent.

It’s also important to acknowledge and celebrate milestones as they’re met, and to look back on long-term progress. 

Individual Development Plan Examples

Let’s consider some basic individual development plan examples to see exactly how an IDP can vary with different contexts. 

‍An IDP Example for an Emerging Leader 

This emerging leader says they want to build their emotional intelligence and communication skills, as well as develop more strategic thinking as they shift into management roles.

Goals:

• Help people feel heard
• Learn how to communicate effectively across departments
• Develop more of a strategic management perspective

‍Skills to develop:

• Active listening and relationship management skills
• Cross-group rapport and conflict resolution skills
• Strategic thinking skills

Action plan:

• Practice active listening with peers and request feedback
• Facilitate a cross-department meeting with support 
• Join the company’s executive coaching program and think of two ways to improve departmental activities

‍An IDP Example for a New Employee

This new employee wants to get up to speed with internal platforms, develop successful working relationships with new colleagues, and expand their technical skills. 

Goals:

• Learn how to use the company CRM smoothly
• Build up a rapport with the rest of the team
• Develop all technical skills needed for their new role

Skills to develop:

• Data management within the CRM
• Collaboration and relationship skills
• Technical skills, but not sure which to develop yet 

‍Action plan:

• Complete the CRM onboarding process within the next two weeks
• Attend the company’s upcoming team coaching sessions
• Shadow a more experienced colleague for one week and identify three technical skills to work on

‍An IDP Example for a Subject Matter Expert 

This highly skilled employee is looking to share their expertise with others and move into more of a training role over the long term. 

Goals:

• Share technical knowledge more effectively 
• Develop training delivery skills
• Transition into an internal mentoring or training role

Skills to develop:

• Adult learning methods and skills
• Presentation skills and confidence
• Coaching and mentoring skills

Action plan:

• Complete an introductory instructional design course
• Deliver a half-hour presentation at one of the company’s knowledge transfer sessions 
• Mentor a junior colleague with a once-weekly check-in

Common Mistakes to Avoid in Individual Development Plans

There are some frequent missteps that can dilute the effectiveness of an individual development plan. Here are some mistakes to steer clear of:

• Setting too many goals or actions: Overwhelm can lead to inaction. Aim to keep each employee focused on three to four key goals, with actions that feel challenging yet achievable.

• Setting vague goals: Unclear objectives won’t help anyone. While some goals might be tricky to quantify, stick to the SMART principles of Specific, Measurable, Achievable, Relevant, and Time-bound as much as possible.

• Failing to consider organisational strategy: It’s important to point organisational support and resources towards efforts that will genuinely benefit both employee and employer; aim for mutually aligned goals.

• Failing to review the plan: Without regular reviews, employees might not realise their progress or feel motivated to continue. Review and update the IDP regularly as achievements and goals are met.

• Treating it as a top-down process: An IDP is most effective when developed by the employee, rather than dictated by management. The main aim is to support and facilitate.

Summary

An individual development plan supports a continual improvement approach to performance management, where thoughtful development helps amplify capability and growth for both employee and employer.

If you're an Australian organisation looking to build a more effective approach to your talent development, our team has the experience and expertise to help. Get in touch with the HumanX HR team today to find out how we can support you through tailored HR consulting and outsourced HR solutions.