There is an old adage that states: “Leaders are born, not made.” But there are plenty of leadership training statistics that prove otherwise. The numbers show that well-developed leadership is tied to business longevity, low employee turnover, healthier profits and so much more.
The reality is that executive leadership training has been proven time and time again to be a worthwhile investment, which is why it should be in your corporate handbook.
Read on to learn more.
Companies that invest in comprehensive training see 218% higher revene per employee than companies without formalized training.
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For the company as a whole, this translates to a 24% higher profit margin than organizations without formalized training. A formal training process gives each new hire a streamlined experience with onboarding. Later in that person’s career, it creates a clear path to management and ensures he or she is fully prepared to take over the predecessor’s responsibilities. The rest of the employees benefit from this smooth transition, and the organization continues to run as normal.
65% see opportunities for advancement as an essential part of the ideal job.
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A “good” job is no longer just about high pay and a full benefits package. While today’s workforce still values those things, employees are also looking for personal fulfillment and opportunities for advancement. Many are aspiring leaders who simply need training in order to reach their full potential.
10,000 Baby Boomers are retiring every day.
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The leadership gap is exacerbated by the generational shift in the workforce. Today’s leaders are retiring at a rapid pace, leaving behind mostly Millennials—by next year, they will make up 48% of today’s working aged population. Two-thirds (67%) of them are looking for a new job, and 91% plan to stay in their current jobs for less than three years. However, considering that 65% of job seekers are looking for opportunities for advancement, it’s safe to say the present and future generations are looking to be molded into successful leaders. They value executive leadership training and are happy to pursue jobs with good leaders. Furthermore, offering career training and development would keep 86% of millennials from leaving their current position (Bridge)
75% of those who willingly left their jobs moved on to escape bad management.
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According to a Gallup Poll, “they’re not pursuing other interests or chasing more money—they’re escaping bad managers and poor leadership.” Poor leadership results in a high employee turnover, high spend on recruitment costs and, ultimately, low overall performance and profits. Millennials in particular (63%) are unhappy with the lack of leadership training and lament that their skills are not being developed. This ties directly to 79% of employees leaving jobs due to lack of appreciation, which is a key indicator of bad management.
Employees supervised by highly engaged leaders are 39% more likely to be engaged themselves.
(Source)
There is a trickledown effect in workplaces with highly engaged leaders. Leadership teams who create a culture of engagement inspire employees to assist with the improvement and development of the business, and the whole organization benefits. New employees will also adopt this mentality in order to flourish in their roles.
83% of organizations say it is important to develop leaders at all levels.
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Though most businesses claim to hold this value, only 5% have fully implemented development at all levels, including leadership training for executives. Perhaps unsurprisingly, 58% of organizations’ top priority is closing leadership skill gaps, and 43% of organizations say their top priority is closing gaps across all leader levels.
- Companies with engaged employees outperform those without by up to 202% (Dale Carnegie research)
- 84% of employees in the best performing organizations are receiving the training they need compared with 16% in the worst performing companies (IBM)
58% of managers report that they never received any management training.
(Source)
Experience is certainly an effective teacher, but leadership training provides a more solid foundation that sets managers up for success. Only 18% of organizations say their leaders are “very effective” at meeting business goals to only 19% of those same organizations say they are “very effective” at developing leaders. Companies and their current leaders are responsible for preparing successors for their future roles, thereby also ensuring future business goals are met.
Women hold fewer than 15% of board of director roles.
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There is a massive opportunity for companies to build strong leadership teams simply by investing in their female employees. The current statistic reflects a 54% increase since 2010, but there is still room for improvement. In fact, the study reports that “where women account for the majority in the top management, the businesses show superior sales growth, high cash flow returns on investments and lower leverage,” showing that hiring more women for executive leadership will also boost business.
Organizations with 100-500 employees provide one minute of training per employee per month.
(Source)
This comes out to an average of 12 minutes of training per year, which is a shocking number considering the negative impacts of having no formalized training process. On the positive side, even a short-focused training program will put you ahead of the competition and primed for profits.
71% of organizations do not feel their leaders are able to lead their organization into the future.
(Source)
The most shocking of all of these statistics tells the story succinctly. There is currently little hope for the longevity of many companies, and poor leadership is the root of the problem. However, it’s not too late. Organizations who recognize their leaders as worthwhile investments are preparing for the future, which is why they have used leadership training and have reaped the rewards in the process.
Recently trained managers are more engaged in their jobs, according to their direct reports. Their organizations also reported 114% higher sales, 70% lower turnover, 71% higher customer satisfaction and 90% lower absenteeism.
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