Great leadership matters. It is key to building teams that thrive. Why do so many companies fail to prioritize developing a leader’s behaviors, skills, and competencies? Why do companies consistently put people into leadership roles unprepared or under-prepared? There’s a bunch of reasons why. We will not unpack all of those here, we will share why developing leaders is smart business.

Why Developing Leaders Makes Smart Business Sense

Leaders and leadership impact three key areas of business: People, Profit, and Purpose.  What does this mean? When a person steps into a leadership role, their role is to grow and support people to get the mission and tasks complete. The better people do delivering great service the more revenue and profit a company generates. Leaders substantially affect the organizational culture and the purpose.

Let’s push into this a bit more. If a poorly prepared leader negatively impacts people on a team several things happen. First, productivity usually goes down. Second, when those people decide to leave the company loses critical business knowledge. And finally, replacing employees is seriously expensive.

Think about this.

Employee Attrition is Expensive

An employee earns $75,000. To replace that employee it costs 50% to 80% of a person’s salary. At 50%, the replacement cost of a $75,000 employee is $37,500! At 80%, the replacement cost is $60,000! Training and developing people to be effective leaders makes great business sense.

Investing in leadership development programs like our LEVERAGE Leader Program to develop middle managers or our ASPIRE Leader program to develop emerging leaders has a huge return on investment. For a fraction of the cost to replace an employee, investing in research-based leadership development programs improves leaders, teams, and organizational culture.

Leaders Grow People and Business

Leaders who learn and apply effective behaviors grow and develop people and teams. This increases productivity, brings in new customers, increases revenue and profits, and inspires employees to be better.

Developing leaders makes great business sense. Learn more about our leadership programs below.