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When companies invest in coaching programs for their employees, the average return on investment (ROI) is $7 for every dollar spent on leadership development. According to a report on September 21st: That's according to leadership development platform BetterManager and research firm The Fossicker Group.
The ROI appears to come from increased revenue and sales from participating in leadership development, as well as cost savings from improved employee retention and reduced recruitment costs.
“Countless qualitative studies have shown that the benefits of leadership development ripple throughout an organization,” says John Topping, president and COO of Better Managers. It said in a statement.
“HR leaders are increasingly being asked to make a business case for the programs they implement,” Topping says. “These tangible results, measured in hard dollars, demonstrate that leadership development is a multiplier benefit.”
In a survey of 752 leadership development leaders across a range of companies across the U.S., Canada and the U.K., 84% said their companies are still prioritizing investment in leadership development despite challenging market conditions. Additionally, 99% said they plan to maintain or increase spending on leadership development over the next 12 months.
The report found that investments in leadership development vary by industry, including the amount spent and who receives training and coaching, with government agencies spending as little as $25 per employee and law firms spending as much as $2,667 per employee. It also found that holding companies spend as much as $1,667 per employee and manufacturing companies spend as much as $1,000 per employee.
The amount spent on new and mid-level management also varied: business services companies spent about a third of their leadership development budgets on new and mid-level management, while government agencies spent nearly half of their training budgets on lower-level management, while top-ranked healthcare and insurance companies spent 41% on lower-level management, and media and internet companies spent about 39%.
“It's important that managers at all levels receive the support and expertise that leadership development provides,” Topping says. “This isn't just for the person in the corner office.”
Leaders of all types are struggling to adapt to new trends in today's workplace. According to a recent Deloitte report:Companies are increasingly focusing on training to improve soft skills such as project management, communication, decision-making and critical thinking.
especially, Today's Managers Need Better TrainingAccording to a recent report from Info-Tech Research Group, manager training is effective, especially if you're being promoted from a technical role or another position without leadership expertise. The most effective manager training provides trainee-centered instruction, focuses on essential skills, and requires practical application as soon as possible.
In addition to leadership development, Coaching helps managers improve their skills To meet new demands, especially related to the cultural shifts seen since the pandemic, coaching can improve employee well-being, support female leaders and promote inclusive leadership, CoachHub finds.
