Without quality leadership, employee engagement and retention are endangered. Turnover hurts the bottom line, since hiring a new employee to replace an old one can cost anywhere from an additional 50 – 200 percent of the role’s salary. A far better solution, according to Katy Tynan, a principal analyst at Forrester, a global research and consulting firm, is to invest in leadership training.
According to a survey of more than 700 HR leaders conducted by Forrester and HR Executive Magazine, 65 percent of businesses spend up to $2500 per employee annually on such trainings. Consider that if five managers making $100,000 annually quit, a company might need to spend $500,000 replacing them.
Of course, leadership development isn’t something you can simply throw money at, and there is no guarantee that one course will transform a person’s leadership ability. Tynan’s advice for retaining the best talent is to reinforce workshops and virtual learning programs with immediate opportunities for practice. For example, after a workshop on giving feedback, HR leaders could match attendees with learning partners to practice in simulated real situations.
Time, of course, has its own cost, but creating a learning community of practice can have deep and lasting benefits.
How much does your organization spend on leadership training, and how much time does it allocate for follow-up? To join the conversation, click "comments" above.
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