If your organization doesn't offer employees leadership development, you may be missing a tremendous opportunity to strengthen your company.
What is Leadership Development and Why is it Important?
Leadership, or talent, development is programming provided by an employer to encourage employee growth and provide an education for employees to move up within the company. It gives each employee a way to further their career and meet their goals within the company. Leadership development goes a step beyond standard job training; it’s often an opportunity for employees to watch a mentor in action.
A good leader development program is personalized to the company’s needs and priorities while matching the employees’ interests and goals. Companies win when they offer substantial development opportunities; their employees develop necessary skills, and the employees win because they are provided a way to move up the company ladder.
It’s essential in today’s business climate for businesses to provide their employees with development opportunities. However, this does put the onus on HR leaders to spot the skills of each employee and pair them with the proper development process or program.
The Many Benefits of Leadership Development
Talent development is a prime opportunity for a business to gain an edge over its competitors. Of course, the employees aren’t the only ones benefitting from development programs. Businesses reap big rewards when they work this into their business model.
Recruit and Retain Top Talent
Prospective employees are better impressed when a company has a solid talent development program. It indicates that the company supports their employees moving up, and that helps the employee feel a sense of stability.
Most employees would rather stay at their current company. They are already settled in and comfortable, after all. However, 63.4% of employees would like to change jobs and try new roles but stay within their current company.
Increase Employee and Business Productivity
Development programs don’t just prepare your employees for future opportunities. They reinforce the skills that an employee needs for their current role. As a result, they’ll be better prepared for what they currently do.
Consistent talent development reinforces skills and gives employees the tools to reach their full potential.
Develop A Stronger Leadership Team
As your employees move through the ranks of your organization, trainings will give them the tools for effective leadership. And when the majority of your managers and leaders have all come from the same development program, they are more likely to be on the same page.
A harmonious management team creates a smoother flow around the office. Employees always know what to expect; they aren’t ever caught off guard when a manager does something different than what they are used to.
Minimize Skill Gaps
Development programs fill out employees' skill sets, making them more valuable and efficient. They can take on other tasks they may not have previously had the knowledge to tackle.
87% of companies from around the world have said they notice skills gaps among their employees. However, if those companies had those skills covered, there would be no disruptions in their operational flow and would reduce the need to outsource certain tasks.
Cut Back on Company Costs and Increase Financial Performance
Your business saves money when it retains its team. Training new hires costs more money than keeping the old ones in place. Reducing turnover among your staff is also a more efficient way to run your business. When your employees remain consistent, so does the output in quality and volume.
The time, effort, and cost of implementing a leadership development program are better for your bottom line.
See a Rise in Customer Satisfaction
We’ve discussed how your employees will be more productive in their current roles. They will also be more engaged in their jobs since they will better understand what they need to do to be successful.
Employee engagement has been shown to translate into customer satisfaction. When a company’s employees are very engaged in their work, they outpace the competition by 147%. Leadership development is an excellent way to build and sustain engagement.
Planning for the Company’s Future
Your business isn’t the only thing that changes over the years; so does the world of business. So as things continue to grow and change, it makes sense to help all your employees keep up.
Your business will fall behind if the business world keeps moving forward and your employees aren’t prepared for these changes. Development training can help keep them on top of current trends and expectations.
However, leadership development helps prepare for the future in another way. For example, it’s natural for a business to lose managers as time passes. Rather than being caught by surprise or in an awkward spot with nobody to fill the role, a leadership development program ensures that your business has capable employees already within the organization.
It’s wise to plan for the future. 35% of businesses already do; they have implemented a formal process to ensure a smooth succession.
Development Leads to Innovation
When employees are supported in their business learning, they feel more at ease exploring and expanding their ideas. As a result, your business opens up a whole new team of creative thinkers empowered to look for solutions and opportunities for expansion.
When more of your employees think like this, they are ready to take on new challenges and bigger clients. Thanks to their solid training and newfound engagement, they will be more honed to spot opportunities of opportunity.
Improves the Feedback/Performance Cycle
As I stated early on, talent development goes beyond generic job training. It’s an opportunity for mentorship and direct coaching. When your employees receive coaching, not just training, they receive personalized and immediate feedback on their performance.
This real-time feedback allows employees to adjust their work performance, leading to a quicker improvement. They are also more likely to take the feedback more seriously, knowing that it does apply to them; it’s easy for employees to ignore input directed at a group.
Leadership Development is a Win for Everybody Involved
When a business enacts a development plan, it is amazingly beneficial to the employees. They get the chance to better themselves and make themselves more marketable, learning the best ways to move up within the company. However, it isn’t a selfless move on behalf of the company. The company benefits just as much as its employees; their bottom line is improved, their employees are happier, and the entire workplace can thrive.
