Often, business owners are reluctant to invest time, effort and funds into a leadership development program.
Running a business can get expensive, and team training or leadership development programs can be costly. After the soaring costs of payroll and other expenses, adding an additional expense for training seems excessive. Isn’t it enough that employees are paid a fair wage?
Yes, and no.
A fair wage is one of the fundamental cornerstones of successful companies. It is an essential element of successful companies. However, companies that want to go farther and reach new levels of success must go beyond simply paying their employees.
Why waste my money on leadership development for employees who may leave the company?
The US Bureau of Labor and Statistics reports that turnover costs to an organization reach nearly 33% of an employee’s total compensation. The main reason given for turnover? Poor management.
While there is a chance that employees will leave, providing additional training and leadership development will increase the chance that they stay. In addition, employees appreciate the investment and demonstrate loyalty towards a company that invests in their growth.
Why take time away from being productive for programs that are ineffective?
Leadership training is big business. More than $170 billion is spent annually on leadership training in the US, and many corporate leaders see little results.
Taking employees away from their job responsibilities to participate in silly exercises compounds the problem. Why don’t more leadership training programs result in better leaders?
Training that focuses on processes rather than leadership skills do little to develop forward thinking. Don’t settle for over-priced social events. Research effective leadership development programs and invest with a company that has a proven track record of results
The Value of Investment
Leadership training is an investment – but does it pay off? When can you expect to see a ROI? What benefit does leadership training actually provide?
1. Improves Corporate Culture
Horror stories of toxic work environments are abound. There are managers who demean their employees, controlling individuals who refuse to allow anyone else to make decisions or others who are consumed with paranoia who have a negative impact on their department.
These individuals can have a detrimental effect on the culture of the company, causing a drop-in productivity, a loss of revenue and high staff turnover.
One of the best way to cultivate a workplace culture that reflects the values and ideals of the corporation is to promote from within. Through a systematic leadership development program, you can instill the principles of your culture in current employees and help them rise to leadership positions from within, giving your company a consistent, positive culture.
The culture of your company is too important to leave to chance; investing in effective leadership development will provide you with long term results that can impact your bottom line in a positive way.
2. Attracts and Retains Qualified Employees
The most common reason given for employee turnover is dissatisfaction with their supervisor. Improving the leadership skills of current employees improves the morale within the company, which helps to retain top employees.
In addition, great leaders attract great people. A successful leadership development program reduces the costs associated with hiring and training new employees by reducing the rate of employee turnover.
3. Increase Revenues
In spite of the overwhelming evidence that leadership development improves corporations, many business owners simply want to talk numbers.
After all, if there is no revenue, the business won’t last. Is it possible to quantify the benefits of leadership training? The Global Coaching Client study discovered that an investment into leadership does pay off – in a big way.
"Past clients have shared with us that after their My Big Idea™ Workshop, their teams are more collaborative, focused and respectful of each other goals and objectives." Shaila Kasmani, Managing Director, My Big Idea™
The typical company that reported numbers experienced a median return of 700%. According to these results, the average company can expect a return of seven times their initial investment into leadership training.
Have we convinced you to take another look at corporate training and leadership development for your company? Contact us to see how we're a bit different and way more effective.
Michele Bailey is president and CEO of Blazing THE Agency and My Big Idea™. These two lines of business work congruently to support her clients’ success.