Leaders in an organisation not only form and execute business strategies but also empower and influence people to achieve business and team goals. Great leaders inspire people to perform better and nurture them to grow in their careers. Leadership development can be described as a process of training individuals by developing capabilities and skills that are essential in leadership roles. The increasing competition and the struggle to secure and retain talented candidates have increased the importance of leadership development for organisations. While background screening helps you attract top talent, implementing leadership development programs ensures you retain them. Apart from that, it offers several other benefits to an organisation. Here are some reasons that highlight the importance of leadership development.
Increases Employee Productivity
Leadership development programs offer career growth incentives to employees. By helping them to develop leadership skills and attitude, employees get inspired to perform better and grow. The motivation induces a sense of ownership, which empowers them to work more efficiently. Without such motivation, employees lose interest in their work and fail to contribute to business growth. Hence, consistently implementing leadership development can increase the productivity of your people.
Increased Employee Retention
Employees accept job offers with the hope of nurturing their skills and cultivating abilities to grow in their careers. Leadership development is all about enhancing the abilities of talented individuals to take up more challenging roles. Such programs provide incentives to employees in the form of growth and promotions. When they get to learn and rise within the organisation, they will stick around longer. Without such a program, you fail to retain employees. It further results in loss in terms of recruitment cost, salary and other employee costs. Hence, investing in leadership development proves beneficial in retaining employees and reduces recruitment costs.
Increases Employee Engagement
An important part of leadership development is feedback and appreciation. Every employee likes to know how they are progressing in their roles. Receiving appreciation for good work as well as constructive feedback to perform better is always valued by employees. This provides them with a direction and induces a sense of importance to stay committed toward organisational goals. On the other hand, employees who do not receive motivation and guidance lack direction and lose interest in the organisation along the way. Hence, with leadership development, you maintain employee interest in the organisation and increase engagement.
Foster Your Future Organisational Leaders
Every organisation is on a lookout for talent with leadership qualities. It is not easy to attract such individuals as there is stiff competition in the market. Moreover, it has become significantly harder to retain them. In order to attract and secure such talent, you may have to incur additional costs. Having a leadership development program saves you from such situations. You can nurture talent from within the organisation to prepare them for becoming future leaders. This increases employee retention and saves you from unnecessary costs.
All these points highlight the importance of leadership development for an organisation. It not only helps you secure talent but also contributes to business productivity and growth. Hence, if your organisation does not have a leadership development program, it is time to contemplate on having it.