Companies globally are struggling with internal leadership development. A vast majority of companies (86%) say developing new leaders is their top talent challenge.
This challenge has a tangible financial cost. The average company leaves over $1 million on the table every year due to poor leadership practices. On top of that, these same companies are losing as much as 50% productivity.
- It's also a huge competitive opportunity. Despite this lack of leadership pipeline, 61% of companies still report they offer no leadership training at all.
Employees want to grow. Nearly two-thirds (63%) of U.S. employees who quit their jobs in the past year did so due to a lack of opportunities for career advancement.
Employees expect learning and development programs. Opportunities to learn and grow has quickly become employees’ number one factor in determining a great work culture.
Invest in employees and they will stick around longer. Nearly all (94%) of employees say they would stay at a company longer if it invested in their career.
How much longer? When employees feel their company has excellent internal mobility options, they are likely to stay almost twice as long with that company — 5.4 years versus the average retention of 2.9 years.
Additional Source: Pew Research Center
Employers are starting to invest in L&D. Nearly half (48%) of L&D professionals expect their spending power to increase in the next year. That’s a six-year high.
This will fuel a leadership development boom. Leadership and management training is the top priority for L&D professionals.
Investing in development yields high returns. Employees who are given effective development opportunities see an increase in performance of up to 25%.