Sometimes getting the higher-ups on board with an investment in leadership training can be a tough sell, because stakeholders like cold, hard numbers, and it’s hard to put an exact value on company training initiatives. The return on investment of such programs is often hard to quantify specifically.
Here’s what we do know: countless studies and surveys show that bad management is the death of profits. To illustrate why this is, let’s first break down the effects of bad leaders and the resulting costs:
Bad leaders don’t know how to inspire their teams, are unable to connect with employees on a personal level, and/or are unable to garner respect. They do little or nothing to help team members grow, learn new skills, or take on new responsibilities. They don’t help their employees network, find mentors, or better understand their role within the greater goals of the company. Bad leaders don’t delegate, or they put unrealistic demands on their employees. They are poor communicators who do not express gratitude, don’t take questions, and don’t make themselves accessible for guidance.
The resulting costs of these bad leadership tactics can include:
A lack of engagement: One of the biggest negative impacts on a company’s bottom line.
Lawsuits: When bad behavior goes unchecked either by the leader or the people the leader oversees.
Turnover: When employees finally have had enough and decide to go someplace where they’ll be appreciated.
On the flip side, good leaders help train and bring up future leaders. They know how to set actionable goals and teach their employees how to do the same, serving as a coach and mentor for their team members. Good leaders know how to admit when they are wrong, create safe spaces where everyone has a seat at the table and a chance to be heard, and they know how to adjust their leadership style to work for their employees.
Healthy leadership skills learned in training and practiced over time can lead to a more cohesive workforce, a better sense of purpose for each individual employee, higher engagement levels, and more opportunities for good ideas and high-potential employees to rise through the ranks.
To get these positive effects, an ongoing investment of time, energy, and capital must be made in training better leaders, because leadership isn’t something you can master overnight. It’s a practice that develops and grows over time, and as leaders continue to grow and rise, it’s a set of skills that they pass down to new leaders – again, as a continuing investment.
To learn more about the positive impact that leadership training can have on your company and its potential ROI, please feel free to contact us.