Studies have found that the most financially successful organizations don’t recruit their leaders— they develop them in-house. According to research highlighted in a LinkedIn® Learning guide, 61% of companies offer no leadership training even though the average company forfeits over $1 million per year in untapped potential and loses as much as 50% of productivity because of less-than-optimal leadership practices. What to do to remain competitive?
If you want to remain a competitive force in your industry in 2018 and beyond, statistics and research indicate that you should seriously invest in your leadership development and training programs. Continue reading to learn more about how your organization’s leadership development program affects your bottom line.
Program Goals Tied Directly to Organizational Goals
When you develop a comprehensive leadership program, you’re able to teach your employees the specific skills that are relevant and necessary for the financial success of your individual organization. For instance, you can develop your future operations managers to follow and develop in-house procedures that are built around the specific and customized equipment, software, platforms, infrastructure, procedures, and staff you already have instead of hiring an outsider who may not easily understand what’s already in place and will have a steep learning curve.
And you’ll be able to design leadership programs that are strategically linked to goals that promote productivity, sales, lead generation, and more, depending on each department and function your organization has. The financial and operational goals your organization wants to achieve with its leadership programs is entirely at its own discretion.
A Healthy Pool of Engaged Employees Who Stick Around
If you develop leaders in-house, you’ll always have a healthy pool of viable candidates when a leadership position becomes available. You won’t have to take a risk on hiring an external candidate who may not stay with your organization long or who may not be a good fit with your organization or already established teams. And you won’t have to waste time or money on the entire recruitment and interview process.
Did you know that employees who don’t believe they can achieve their career goals with a current employer are 12 times more likely to leave? And with brand-new employees, that number rises steeply to about 30 times more likely.1 If employees know their efforts and leadership development will eventually lead to a promotion if they stick with your organization, they’ll remain more engaged in your program and at work on a day-to-day basis and will remain with your organization much longer. More engaged employees lead to higher productivity rates and higher retention rates, which leads to less money you’re spending on replacing and training new hires.
(To be continued in tomorrow’s post …)
1LinkedIn. Developing Employees into Leaders. Accessed 2/23/2018.