57% percent of people were reported to quit their jobs because of poor leadership in their organization. Leaders set the tone of an organization's culture. In order to retain a happy and productive workplace, it's integral to understand the value of leadership development.
Leaders can be found via a talent search. In other instances, leaders are born through continuous leadership development.
In this article, we'll dissect the four main benefits of leadership development and learn more about the importance of leadership development training.
1. Identify Potential Executives
The outsourced executive search can take nearly three months on average. That is a long time for a company to be sitting with a temporary direction.
Recruiters deem a "lack of experience" within an organization as the primary reason for outsourcing a senior executive. But what if you could be nurturing the company's future CEO. This is often in part due to the company's own failure to implement some sort of leadership development in their own employees.
Internal leadership hires generally perform better. They understand the organization's structure. It's much more effective than pulling someone in completely new who needs to learn the entire company while telling it how to run.
2. Increase Retention Rates
Employee retention relies heavily on management styles. In a LinkedIn survey, 94% of respondents said they would stay at a job longer if they focused on leadership development and education.
Retention is a sign of a healthy company. It means job expectations and descriptions align, and it usually is an indicator that employees and employers are satisfied.
Retention also saves money. Employers spend so many resources in the hiring process. When employees part ways prematurely, it can cost sometimes half the salary they were earning to find a replacement.
3. Boost Productivity
Training employees to be leaders boosts productivity. Whether they are in a senior role or entry-level internship, leadership is an important skill for quality work.
Leaders provide direction. They're independent self-starters. Empowering employees with leadership can lead to faster decision-making and reduce bottlenecks in productivity.
4. Return on Investment
When employees realize their career isn't a dead end, but a branching tree, they feel motivated. Leadership training is one way to reinforce the notion that they do have growth opportunities. This realization motivates every employee to work harder which often leads to improved metrics.
The reduced turnover as a result of leadership training boosts ROI. There are fewer hiring costs. With increased employee retention the bottom-line benefits.
Employees have the tools and tenure to familiarize themselves with company processes. They feel invested in. This translates to higher outputs and boosted margins.
Unlock Your Company’s Potential With Leadership Development
An effective leadership development strategy boost employee rapport. Taking care of your employees by nurturing their leadership potential has a ripple effect on key markers of success. It boosts the bottom line, increases employee retention, and creates healthy company culture.