In today’s agile and dynamic business world, the key to being an effective manager is developing leadership competencies that impact outcomes. In fact, effective leadership is one of the top reasons for employee satisfaction. A Gallup survey concluded that 70% of employee engagement is influenced by managers. Additionally, 32.5% of those surveyed say they would quit if they had a bad manager. Consequently, developing managers into leaders at all levels of the organization is now more crucial than ever.
Successful leaders build trust, establish connections, and create high-performance teams in thriving organizations. In fact, 14% of businesses are spending between $7,000 to $10,000 per person annually on leadership development. Yet, only two out of five firms believe they are developing leadership skills that align with their business needs and are beneficial to the company. Thus, CMP uses customized methods to assess organizational needs and identifies the right leadership development solution for each organization. If you want to develop high-potential talent who can steer your organization through times of change, a good leadership development program is crucial.
We’ve put together 3 top reasons why leadership development is essential in today’s workforce:
1. High impact on organizational success
As much as 56% of employees in the United States are disengaged at work; the estimated annual cost of employee disengagement is between $450 - $500 billion to the US economy. Research shows that employees feel supported and valued by their leaders, they are more engaged. Effective leadership development creates strong leaders who drive employee engagement through a sense of purpose, support, trust, and recognition. This further enables high productivity levels and a high impact on the organization’s success.
2. Leads to greater innovation
Successful leaders can inspire their teams and lead them to believe in the bigger vision of the company. They can transform organizations, create efficiencies, and enhance value creation through a lens of continuous improvement. According to a 2018 Harvard State of Leadership Development report, 80% believed in the need for more innovative learning techniques in leadership development programs. It is essential that companies now look at how they train their managers. This can be a key opportunity to improve the bottom line and drive greater innovation across the board.
3. Retain employees & develop future leaders
A lack of effective leadership development can significantly impact the workforce, especially millennials. As much as 77% of millennials reported that their organization’s ability to support leadership development was weak. This can have negative consequences given that millennial workers represent the large growing generation and are steadily moving past entry-level jobs into leadership roles. Research has shown that millennials prefer employers who offer training and development above all other benefits. Implementing a leadership development program can help future leaders develop the necessary skills and lead the company with confidence.
In our experience, we have seen leadership development create powerful experiences and lead to high-performance outcomes. If you are looking to implement leadership development efforts in your organizations, CMP offers customized coaching and mentoring programs that effectively develop your managers into leaders. Learn more about our leadership development solutions and get in touch with us today!