Q1:

“For example, instead of promoting employees until the first managerial job and
then teaching them management skills, KPMG identifies future managers in
teaches them to manage as they prepare for those positions. Top executives visit
training sections to demonstrate the value the firm places on learning. The formal
training is backed up with mobile in social media resources that reinforce
learning.”
It is a process where employees, with the support of their employer, go through
professional training to improve their skills and grow their knowledge. definition of
employee development.

Q2:
If they reduce the employee development for future positions, their employee will
have no chance to develop themselves in a better way and have ambition for the
effort to get higher positions, this reduces the ability to build a high-quality labor
force for the future.
Moreover, problems can arise, to be detailed:
Poor and Worsening Performance
Employees who don't receive adequate training may have difficulty meeting
performance standards, not self-motivated and take it upon themselves to learn
how to do their jobs better. As a result, they may end up learning by trial and
error or by imitating co-workers of varying levels of competency.
Lack of Employee Development
The process of hiring a new employee can be expensive, and there is no
guarantee that a new hire is going to be a good fit for your company. If employee
development is not invested, current employees may never develop the skills
necessary to take on supervisory positions, executive roles or highly technical
tasks.
Diminished Industry Standing
If employees are continually learning through seminars, classes and participation
in industry events, they are able to keep your company on the cutting edge of
industry trends. Failure to invest in training can result in a cloistered business
that has little industry relevance.
Legal Consequences
Failure to train employees properly doesn't just impact individual employees, it
can also create risks for your entire company. Mistakes made by employees can
result in lawsuits, fines and, in some cases, charges of criminal negligence.