Investment in training is growing faster than any other human capital or HR-related expenditure. That’s according to Mercer, a ridiculously large consulting firm connected to Marsh.
Their recent survey showed that 51% of profitable firms (there’s a criteria for you) were planning on increasing their investment in Leadership and Career development in 2008. That’s more than for cash-incentives, base salary increases, and even health care.
If you’ve been waiting for leadership development to become really popular; to make the investment decision a near no-brainer, then now’s the time. In other words, everyone is doing it.
Besides just generally good for business, there’s other reasons to develop your managers and leaders:
1. You’re working with another small compensation increase for 2008 (see article on my website). You simply cannot afford to “buy” productivity and effectiveness. Alas, we must manage…
2. Better managers and leaders allow you to succeed in multiple areas of the business; more spending on training and less on base pay to attract, retain, and even engage a competent workforce.
3. Better management is a differentiator, higher pay is not.
4. Promotion and development opportunities are frequently cited as one of the top 3 reasons that high performers leave organizations.
So, your business will be better, key employees will stay longer, and base pay budgets don’t get blown out of whack — and we still can’t understand the significance of leadership development…?
Why in heaven’s name are we NOT doing it??