Why Is Leadership Development Important?

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The success of an organisation depends on a wide range of factors. Although these can differ from one business to another, good leadership remains one of the few constant factors that cut across industries. A business needs a strong and strategic leader to make smart decisions and lead the organisation. That's why leadership development is essential for any modern business.

What is Leadership Development?

According to research by Zippia, only 10% of people are natural leaders. Also, another 20% possess standard managerial skills and can become top-quality leaders if the talent is nurtured. That means the success of the 20% will depend on their willingness to enhance and cultivate their abilities to perform managerial roles in an organisation. That is where leadership development comes in.

Leadership development refers to the process that helps individuals enhance their ability to perform leadership duties within an organisation. Modern businesses must commit to developing their leaders to improve their bottom line and gain a significant competitive advantage in the market. Luckily, there are leadership development programs for employers and employees to help organisations achieve this goal.

Unfortunately, only 5% of the 83% of companies who believe it is important to develop their leaders have invested in leadership development programs. With that in mind, it is essential to learn why leadership development is important and why you should invest in one with an experienced HR consultant.

Benefits of Leadership Development

1. Improved Company Culture

An organisation's leadership has a huge influence on the company's culture. They are the people responsible for scheduling, delegating and overseeing tasks. With such an important role in an organisational setting, a strong and reliable leader brings a sense of purpose, vision, mentorship and inspiration to those below them.

With leadership development, leaders can learn the importance of developing a strong link between higher and lower ranks. The modern workforce is diverse and slowly redefining what it means to be successful professionally and personally. As such, the traditional leadership models and cultures we are used to are slowly phasing out.

The younger workforce does well in a more developmental and mentoring leadership style. And developing such a culture within the organisation requires leaders that are ready to learn new leadership models and evolve with the changing dynamics in the workforce.

2. Better Employee Retention

Another benefit of leadership development is the improved ability of companies to recruit and retain top talent within the organisation's ranks. It creates a successful model that enables employees to develop within the business instead of leaving to pursue their career goals elsewhere.

When a company implements a leadership development program, it demonstrates its dedication to developing high-performing employees. That gives employees a reason to devote their talents, time and career to the organisation.

Leadership development also encourages employee engagement, strengthening the links between employees and employers. According to research, 79% of employees will leave a company if they don't receive adequate appreciation for their work. So, improved employee engagement can help retain the best talents within the organisation.

3. Ability to Adapt to Changes

Besides better employee retention, leadership development programs can enhance the company's ability to adapt to change. We all know that to improve, we need to be able to adapt to changes. Additionally, change is constant and inevitable, and company leadership needs a high degree of flexibility to lead the company to success in the modern market.

With leadership development programs, leaders can learn how to assess the market and shift and experiment with new ways to stay on top of the game. As a decision maker, an inflexible leader can undermine the adaptability of the employees, which can lead to a lack of enthusiasm and low morale within the workforce. That's why every leader needs to learn to accept changes, treat them as opportunities and quickly develop new plans to make the most out of the evolved market.

4. Increased Profitability

Leadership development programs also help create leaders who are capable of driving outcomes. It enhances engagement between employees and employers, encouraging the workforce to be more productive. Research shows that 69% of employees will work even harder if they feel employers recognise and appreciate their efforts.

Besides that, strong leaders can adapt to change. That means they aren't afraid to explore new revenue streams, which can be essential in growing the company and increasing overall profitability.

5. Better Workplace Morale

Leadership development also helps improve workplace morale. It nurtures leaders who understand the importance of inclusion, good communication and empowerment within an organisation. With such individuals running a company, the morale within the workplace will increase since there is a seamless flow of communication from the top to the bottom, and employees feel they can trust their employers.

Good leadership is one of the primary factors that help boost employee morale and loyalty. Research shows that 39% of employees remain loyal to their employers due to proper leadership from their immediate supervisor. So, it is essential to develop leaders to improve morale and increase employee productivity. In a Nutshell

Although leaders are the ones that guide companies toward success, the employees are the driving force behind consistent growth. For that reason, it is essential for employers to continuously improve themselves and build employee motivation, engagement and confidence. That can be achieved through leadership development programs. Here are a few other benefits of leadership development for modern organisations.

This article was guest written by Caroline Reidy.