“More than 60% of companies spend less than $500 per year on management and leadership development (per person).” As the author states, we spend more on coffee in a year.
If you’re not investing in leadership development, and, based on this article, you probably aren’t to a significant level, you’re failing your company.
The stats here are sobering and disheartening, yet not surprising. On top of the reasons suggested in the article for this pullback (the pandemic, quiet quitting, etc.), I believe part of the problem is that there is a perception — real or imagined, depending on the industry, level, etc — that it is an employers’ talent market. Similar to how the hiring process seems to have regressed to an abysmal candidate experience, there may be (I believe there is) a mindset that there is no need to invest in leadership development because leaders aren’t going anywhere.
Obviously, that mindset is horrifically short-sighted in many ways, but the primary two are:
1. Poor leadership begets poor business results. Strong leadership begets strong business results – the data in the graphics in this article underscore this.
Companies with great leadership development practices are:
- 3x more likely to exceed financial targets
- 3x more likely to delight customers
- 12x more likely to engage and retain employees
- 5x more likely to adapt well to change
2. Your top talent – the talent you can’t afford to lose – will always have opportunities to leave.
Hey there, I’m Cynthia. I’m a leadership team whisperer, executive coach, and speaker. I guide leadership teams in high-growth companies to achieve rapid growth in a healthy, sustainable way. I coach senior leaders to discover the path to lead with ease.