In order to boost your bottom line, you need to invest in leadership development from the beginning.
From day 1, new leaders need to receive the proper training required to succeed at people management.
Otherwise, poor leadership results in a significant drain on corporate profits, with unnecessary funds going towards correcting poor hiring and poor practices in the workplace.
Developing your leaders today will result in significantly higher financial gains for your company, in fact, studies have found that:
“The right training not only leads to increases in productivity but at least a 20% jump in profits.”
In light of these findings, here are 3 ways that investing in leadership development programs will benefit your business:
1) Engagement boosts profits. Leadership development improves engagement, which leads to higher performance. For example, Boehringer Ingelheim’s leadership training program resulted in its leaders spearheading initiatives that either saved or made the organization nearly $5 million.
2) Retention reduces unnecessary costs. Training is a great retention tool. Investing in your people will result in employee loyalty and commitment. High turnover results in reduced productivity, sales, and customer service – greatly impacting your bottom line. Providing your staff with the right tools to learn and grow in their roles will contribute to the overall success of your company.
3) Building and sharing skills saves time and money. Leadership development training is an effective knowledge-transfer tool. Not only is it important to develop and enhance the skills of your leaders, but team training will allow for knowledge-sharing, eliminating the challenge of having only one person who is skilled in a specific area of expertise. If a leader decides to leave the company or to shift to a new role, less training will be required to fill their position.
Leadership development results in engaged employees who want to see your company succeed. Showing your employees that you care about their personal growth and development will boost motivation, leading to increased sales, customer service, and time management. These are all essential elements to financial success.