Companies need to play closer attention to leadership development. It's critical in today's quickly changing workplace.
With dramatically changing business conditions and unprecedented industry upheaval, organisations need to have an effective leadership development pipeline in order to turn high-performing employees into leaders who will push forward growth strategies and drive innovation. Companies that fail to invest in developing leaders today might find themselves falling behind their competitors tomorrow.
Companies need to pay closer attention to leadership development.
- Leadership is the most important skill for employees to learn from L&D programs. (LinkedIn, 2018)
- Only 18% of HR professionals say they have a good supply of future leaders. (EY, 2017)
- 44% of millennials are now in leadership positions, but most believe they are receiving little to no development in their roles. (Deloitte, 2017)
- Only 5% of companies feel that they have strong digital leaders in place. (Deloitte, 2017)
- 65% of C-level executives say developing “next-gen” leaders is their top challenge. (EY, 2018)
Investing in leadership development drives success.
- Organisations that see leadership development as critical to their success are 29 times more likely to have a successful transformation than those where leadership is viewed as not important. (Harvard Business Publishing, 2018)
- 32% of businesses with an effective leadership strategy are ready to respond to the competitive environment versus 18% of those without. (EY, 2018)
- 33% of organisations with an effective leadership strategy are ready to maintain effectiveness versus 23% of those without. (EY, 2017)
- 94% of employees say that they would stay at a company longer if it invested in their career development. (LinkedIn, 2018)
5 strategies for building an effective leadership pipeline.
Frame leadership education as “developing leadership skills” instead of “becoming a leader” in order to get employees more interested in the program. (Harvard Business Review, 2018)
Focus on spotting high-potential employees, understand their capacity for growth in key competencies and give them the experience and support they need to succeed. (Harvard Business Review, 2017)
Encourage coaching to support employees in their leadership development:
- Organisations that use coaching for leadership development (EY, 2018):
- show greater leadership bench strength
- promote more leaders from within
- cultivate leaders who are satisfied with their advancement and understand their leadership career paths
- lower leader turnover
- prove that learning can come from a variety of sources: peers, managers, employees, and external coaches
Facilitate mentoring to create a culture of continuous leadership development.
- With a mentoring culture, organisations
- have 46% higher leader quality overall
- are 1.7x more capable of capturing organisational knowledge before it’s lost (EY, 2018)
Millennials have different expectations of leadership development around technology, relevance, and choice. (Harvard Business Publishing, 2016)
- Provide digitalised “always on” learning for sustained access to leadership development opportunities.