Having a solid leadership group is essential in business, which is why leadership development training is so important.

Companies that lack leadership tend to suffer from higher turnover, decreased productivity, and lower morale. They can also experience issues with absenteeism.

There’s currently a significant leadership gap for companies all over the country. In fact, a 2018 whitepaper put together by the Association for Talent Development’s Public Policy Advisory Group reports that 52% of businesses have leadership and executive skills gaps, suggesting that many leaders don’t have the necessary skill set to be in that position.

The same study notes that 47% of people don’t believe the current workforce has the skills to replace the outgoing generation, and 35% think their companies aren’t investing enough in leadership training.

These numbers are alarming, but organizations can get ahead of things by investing in some leadership development training today.

Here’s a look at five ways this training can benefit your company.

1) Improve Financial Performance

Naturally, the bottom line is vital to every business, and investing in human capital can pay off in a big way.

Having a focused leadership team helps build the capacity to drive new revenue streams, improve customer service, and reduce operating costs, all of which improve the organization’s financial performance.

Leaders with the necessary training also do a better job of keeping employees on task and performing to their potential, which saves money in the long run.

2) Promote Role Clarity

One critical element leadership development training focuses on is role clarity. The gist is that when every team member understands their role within the organization and how it influences the company as a whole, they report better job satisfaction.

Role clarity also limits job overlap, reducing confusion in the workplace and allowing the leadership team to assign tasks more efficiently.

In a well-run workplace, managers should understand every team member’s role, and these employees should know what’s expected of them on a day-to-day basis.

3) Attract and Retain Talent

Solid leadership knows the value of attracting and retaining talent, both of which are invaluable for the organization as a whole.

In fact, a 2018 study by consulting service provider Mercer suggests that close to one-third of all employees planned to quit their jobs in the next 12 months.

Reasons for quitting include a lack of appreciation, an inadequate relationship with management, absence of career growth, negative corporate culture, poor mental health, and feeling burnt out.

You can trace all these factors back to the organization’s leadership. However, leadership training assists managers and executives in treating employees right, ensuring they stick around for years to come and take the company to the next level.

4) Create a Culture of Accountability

Accountability is vital in the corporate world, and it starts at the top. When leadership passes the blame onto others whenever something goes wrong, it creates a culture where avoiding accountability and responsibility is more important than completing the job correctly.

Leadership development training helps create a culture of accountability within the organization where every team member knows their responsibilities and is accountable to their peers, bosses, and themselves when they don’t meet expectations.

The result is a closer-knit community within the office where every team member strives to reach a common goal.

5) Close the Skills Gap

Finally, leadership development training can help organizations close the skill gap within the company. When the company doesn’t have enough leadership or the existing leaders don’t have the skillset to manage the team, it becomes obvious when the group fails to meet expectations.

Closing the skills gap involves elevating the leadership team to the level they need to be while also creating leadership bench strength where every team member strives to become a leader. Leadership bench strength is vital when the current leadership group is preoccupied, moves on to other opportunities, or retires because it makes the changeover far more efficient, as well.

The Leadership Training You Need

Leadership development training can help you set your organization up for success. You’ll also see the education you provide for your managers and executives trickle down to other team members.

The result is a more efficient, cohesive workplace with a culture that attracts talent and keeps them within the organization.

The Leadership Development Institute’s leadership coaches and consultants are some of the most experienced organizational development experts in Silicon Valley and Bay Area. We can assist as you make the changes necessary to take your business to the next level. Contact the Leadership Development Institute for more information on the strategic guidance we provide.