Companies often spend a lot of time, effort, and money investing into their technology, operations, and facilities. While these areas are important places to invest, these companies often end up ignoring the best investment opportunity: leadership development.
Businesses that invest in their employees achieve more success more often than those businesses that do not invest consistently in their people. Studies have shown that employees who went through leadership training programs increased their capability by 25% and their performance by 20%.
Here are five more reasons why companies of any size should invest in their employees.
1. Increase Employee Retention Rates
During the age of the “Great Resignation”, initiatives that focus on retaining employees are more important than ever. As referenced in this Cornell post, 94% of employees say they would stay at a company longer if it invested in their learning and development.
Having effective leaders who invest in their people’s development is one of the best ways to reduce turnover rates and improve employee satisfaction. Happy employees are more productive and that energy will resonate throughout the rest of the company.
By training employees in best leadership practices throughout the organization, you create a culture that shows you are invested in the success of employees.
2. Improve Communication
Clear, consistent, and timely communication is at the heart of every successful organization. Unfortunately, not everyone is aware of the best practices of communication and how to interact with coworkers.
Many leadership training programs focus on the importance of clear, effective communication between all levels of the organization. This attention ensures that information is passed between individuals in a timely manner.
Good leaders should also be able to tell when there is a breakdown in communication and be able to find solutions. By training leaders in communication, they can become aware of how to handle these situations and support employees.
3. Develop Leader Skillsets
One of the most important skills a leader can have now is adaptability. By investing in leadership development initiatives, you are working to expand the knowledge and capabilities of employees. Even if an employee does not use information learned in leadership training classes every day, they still will gain knowledge that will support the company in the long-run.
Many leadership training programs also encourage creative problem-solving, a key driver for success in any business. Having leaders with strong problem-solving skills can help your business stay ahead.
4. Create a Strong Company Culture
Company culture is at the core of all businesses. It dictates choices and provides a baseline on how employees should perform and interact. One of the most powerful benefits of leadership training programs is the focus on company culture.
Managers and supervisors are the individuals that ensure all employees are adhering to the company culture. By training leaders in all aspects, they are better able to uphold this culture. Creating a strong corporate culture can improve employee morale, encourage more effective communication, and enhance collaboration.
When investing in an employee training program, it is essential that you focus on your company’s culture. Designing a program that emphasizes the values of your company creates a solid foundation for leaders to make the best decisions.
5. Be Better Prepared for Change
Leadership development initiatives should focus not only on the manager levels but also on the development of employee skills across the organization. This broader effort increases your company’s capacity for handling growth, new initiatives, and complex challenges when change happens.
Leadership training strategies are also important in preparing leaders for company-wide change. By educating leaders on a variety of skills relevant to your organization, they are better prepared when an acquisition occurs or when the company expands into different geographies and markets.
Leadership development strategies are at the heart of every successful business transition. Prepared employees are the employees that can continue to perform successfully during times of unexpected change.
The benefits of employee leadership training are numerous, but the most important takeaway is that investing in leadership development will help your company.
If you need support in creating training and development programs that work, Double Iron Consulting is here to help. We are experts in leadership development and know that you need to get the most out of your investment. Contact us today to learn more.