ROI – The Reason to Invest in Leadership Development
The Strength of Your Company Rests on the Quality of Your People
Every day there are reports of companies around the world achieving success. What do they have in common? One thing is a commitment to strong leadership development programs.
What effective companies have learned and put into practice is that the strength of their organization rests solely on the quality of their leadership and the team’s they lead. They must work effectively together.
Leadership development can generate exponential returns and satisfy your organization’s imperative for effective leaders who are a match for your company’s most critical business challenge.
Untrained employees cost more than their wages. They’ll cost a business its customers, its goals and its profits.
Companies that invest in leadership are investing in employees. Happy employees are less likely to demand wage increases and more likely to show up for work motivated to perform well and inspire others to do the same.
Immediate And Long Term Benefits
Companies that invest in leadership training see immediate and long-term benefits:
- Companies reporting strong leadership development programs are 1.5 times more likely to be found atop Fortune Magazine’s “Most Admired Companies” list. – Consulting Psychology Journal, 2002, “The Return on Investment of Leadership Development”
- Companies that invest in leadership development outperform the competition. – Business Week, 10/05
- Among employees who say their company offers poor development opportunities, 41% plan to leave within 12 months; of those who rate their development opportunities as excellent, only 12% plan to leave. High turnover isn’t cheap. The cost of losing a typical worker is approximately $50,000. For managers and high-potential leaders, the cost is much higher. – Fortune Magazine
- One hundred firms ranked in the top third in terms of their talent management, succession planning and executive development system show dramatically better financial outcomes that those in the middle third - Jackson Leadership Systems (2006), “Leadership Development ROI: Using Talent Management to Drive Market value” whitepaper.:
- Average increase of 5.2% in per employee productivity; valued at $44,380 per employee
- Average increase of 16.3% in cash flow; valued at $9,673 per employee
- Average increase of 6% in market value; $8882 per employee
- Increase in company wide profit margins by as much as 47%
- Increase in sales up to 6.5%
- Decrease in turnover
The price of loyalty from today’s employees is a company investment in their future. Leadership development provides a wonderful return both today and tomorrow.
Ember Carriers offers your company an easy, affordable solution to making that investment.
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Shape the Next Great Leader at Your Company
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