Having a strong leadership team can ultimately determine the success of your organization. Yet when developing effective leaders, many businesses tend to fall short. Far too often, people are placed in leadership roles without any proper leadership development training.
A lack of leadership development can be harmful to your organization in many ways. It can result in lost productivity, high turnover, low morale, absenteeism, and more.
According to a recent study, a lack of effective leadership development has a significant impact on the workforce, particularly millennials. 77% of millennials reported their company’s ability to provide leadership development was “weak.” Given that millennials are the future leaders of businesses worldwide, weaknesses in leadership development could have negative consequences. With this in mind it is easy to understand why leadership development is needed within an organization.
So, what are some other ways leadership development can benefit your organization? We’ve put together five reasons leadership development is important.
1.Reduce Employee Turnover
Managers play a substantial role in whether an individual decides to stay or leave an organization. A Gallup poll of more then 1 million U.S. workers concluded the number one reason people quit their jobs is a bad boss or immediate supervisor. By simply evaluating and tweaking how a manager does their job can go a long way.
Employees tend to be more engaged when they feel valued and supported by an effective leader. 56.6% of individuals say the loyalty they feel toward their boss and their organization keeps them from leaving their organization. This is where the importance of leadership development comes into play. Effective leadership development can help boost the engagement level of the manager and employee relationship, which in turn would help in improving employee retention.
2. Promotes Accountability
Effective leadership development creates a higher level of accountability in leaders. A well-developed leader takes responsibility for his or her mistakes and encourages others to learn from them. They make it their priority to ensure their team is productive.
Through development programs leaders learn why creating a culture of accountability is important to the organization’s success. They pass on this responsibility to create a strong culture of accountability throughout the entire organization.
3. Role Clarity
Leadership development programs help leadership understand the importance of role clarity within an organization. Role clarity is defined by employees who know their exact role within an organization and who understand how their job ties into the big picture. Having role clarity reduces confusion in the workplace by eliminating job overlap. It allows leaders to effectively manage and delegate tasks.
To have a productive workplace, leaders should know the role of every team member. With a leadership development program in place, leaders can learn how to identify individual roles to keep team members on track. These programs can be effective if leadership continues to provide autonomy to their team.
4. Creates Strategic Problem Solving
Being an effective problem solver is a trait of a good leader. Being able to solve problems strategically includes analyzing the problem and finding the root of the cause. Effective problem solving in the workplace means keeping an open mind to find every possible solution.
So how does strategic problem solving translate from leadership development? According to a recent study, 86% of organizations with leadership development programs can respond to adversity in an unpredictable business environment rapidly. Whereas only 52% of organizations with poor leadership development programs could not.
Having leaders with strong problem-solving skills can help your business stay ahead. This emphasizes the importance of leadership development. An effective leadership development program will help you transform your leadership and performance of your organization.
5. Close Skills Gap
It is important to address the separation between employer wants and what employees can actually do when discussing leadership development. As skill gaps continue to cause organizations increasing issues, the desire to mend the gap arises.
The Association for Talent Development found that many individuals, especially recent graduates, lack important skills needed to lead a successful career. Their study found the largest gaps in the following skills:
- Leadership skills
- Problem-solving skills
- Management skills
- Communication/interpersonal skills
By simply dedicating time for employees to focus on their skills, you can shrink the gap. The most effective way to do this is by implementing a leadership development program as a platform for employees to learn and grow.
We can help
Having an effective leadership development program in place can benefit your organization for many years to come, but it will take time and a well thought out plan. Our experienced team of HR professionals are here to help! Give us a call today to start developing a tailor-made solution to unlock the hidden potential of your staff. All so your business can do one thing – more business.Back to Insights