A brand new study shows that for every $1 spent on employee leadership programs businesses receive $7 in return. In this newsletter we are breaking down how to create leadership programs so you can see these results as well.
EMPLOYERS SEE $7 ROI FOR EVERY $1 SPENT
"When businesses invest in coaching programs for employees, the average return on investment (ROI) is $7 for every $1 spent on leadership development, according to a Sept. 21 report from BetterManager, a leadership development platform, and research firm The Fossicker Group.
The ROI appears to stem from increased revenue and sales as a result of leadership development participation, as well as cost savings through higher employee retention and lower recruiting costs. “Countless qualitative studies have shown that the benefits of leadership development ripple out across the entire organization,” John Topping, president and COO of BetterManager, said in a statement." Learn more
LEADERSHIP DEVELOPMENT PROGRAMS WELL WORTH IT
"A study released today by leadership development platform BetterManager finds that businesses increase revenue and decrease costs when they invest in coaching programs for their employees. In fact, the average ROI is $7 for every $1 spent on leadership development.
BetterManager partnered with research firm The Fossicker Group for the study, which surveyed 752 people responsible for leadership development at a wide range of companies in the United States, Canada, and the United Kingdom. Available for download here, the research found that the tangible ROI comes mostly from increased revenue and sales as a direct result of leadership development participation. It also found companies saved money through increased employee retention and reduced recruiting costs." Learn more
HOW TO MEASURE ROI
"In today’s economic climate, the importance of measuring training ROI cannot be overstated. Although the advantages of workplace learning have been proven time and again, employee development is a significant investment. In 2021 alone, nationwide expenditures cost upwards of $92 billion.
As such, L&D leaders need to show that training initiatives go beyond employees’ skills, knowledge, and behaviors. To truly gain leadership buy-in, they must demonstrate a return on investment. Unfortunately, some organizations still view L&D as a discretionary expense. When making financial cuts, learning budgets are often the first to go. But proving training ROI helps L&D teams substantiate their spending budgets and make the case for continued investment in employee development. ROI data can be further used to identify gaps and set companies up for continuous improvement. However, as learning professionals know, measuring ROI is no easy task." Learn more