Why leadership development is more important now than ever
It’s pretty simple — organizations that invest in leadership perform better than those that don’t. Leadership development is critical when it comes to long-term success, and right now, there’s never been a better time to explore the benefits.
COVID-19 has changed the workforce as we know it; there’s no doubt about it. But despite its negative side effects, the pandemic has given us many new opportunities to reflect, and connect and communicate closely with our teams. In these times of uncertainty, it’s important to maintain these strong relationships while guiding your team through the “new normal” — and that’s just one reason why investing in leadership development is so important right now.
Strong leaders attract talent and reduce high turnover rates
Ultimately, you want your company to be successful. It may take a few steps to grow and reach that goal, but it all begins with talent. With 40% of employees leaving their organization within the first year due to poor training and development opportunities, talented people will always have one foot out the door. Investing in leadership development can be the difference between having high-performing, connected teams or just getting by. Leadership development also improves employee engagement and reduces the headaches and unnecessary costs that come with turnover. Save yourself the 1-2.5% revenue loss from hiring someone new, and start planning for your future growth by investing in leadership development.
Strong leaders shape your company culture
Leadership development goes beyond individual growth. Strong leaders know how to build relationships with their teams to inspire commitment and top-notch performance. If you’re not investing in your leadership teams, you may not be carrying the culture you think you have throughout the entire organization. Whether you realize it or not, leadership affects the confidence of your staff — they could see mistakes as learning opportunities, or, they may see them as failures, which can damage their self-worth.
Strong leaders increase productivity
Satisfied employees are usually the ones who care about the company and are motivated to help it achieve its goals, and they’re usually the only ones who even bother to find out these goals in the first place. When your employees are happy, they feel more invested in your company’s goals and they feel more compelled to contribute meaningful work, which obviously leads to productivity. Having strong leadership will inspire your team to be more present, resulting in more engagement and new ideas. All of these factors come together to increase profitability and productivity. And, don’t forget — happiness spreads — when watered, it will grow.
Strong leaders improve your bottom line
The numbers don’t lie — organizations that put a priority on employee development make a median revenue of $169,100 per employee, while companies that don’t make only $82,800. Building strong leaders creates high-performing teams, and that can be the difference between having a competitive edge or not. Leadership development doubles as an effective knowledge-transfer tool. Not only is it important to enhance the skills of your leaders, but training your team will remove the challenge of having only one person who is skilled in a specific area. And if a leader decides to shift to a new role or leave the company, less training will be required to fill their position, aka less costs. On top of reducing costs, leadership development drives new streams of revenue and improves client satisfaction — it’s a win-win.
Strong leaders navigate change really well
Investing in leadership development will increase your ability to respond rapidly in unpredictable situations — like a pandemic. When you think outside of the box, you are able to identify challenges, ask the right questions, pick up on early warning signs and execute a plan to move forward. Did we mention that having strong leaders means having powerful influencers in your organization that can manage and roll out change easily within their teams? Suddenly, the whole organization is rowing in the same direction. When facing an unpredictable business environment, 86% of companies with strategic leadership development programs were able to respond rapidly. Meanwhile, just 52% of companies with less mature leadership programs could do the same.