Business

The Real Cost of Not Investing in Leadership Training

Last Updated: Jun 6, 2022 | Leadership

Enrolling your company’s top players in leadership training is one of the best ways to strengthen your organization from the inside out!

But if you’re not investing in leadership training, are you saving or paying? Find out the real cost of not investing in leadership training with Arden Coaching’s post below.

Leaders Are Made, Not Born

Consider where you developed your existing leadership skills. It was probably from a commitment that you participated in outside the office. Maybe you played on a sports team or contributed on a school board.

The reality is that most of us aren’t trained to be leaders. And at work, we typically only receive technical training.

The Peter Principle vs. Leadership Development

BusinessThe Peter Principle states that people work just at the top of their personal competency level. What keeps the Peter Principle alive and well is an employee’s inability to reach that next level, to advance past what’s comfortable and already within reach. Leadership training helps individuals stretch the bounds of how they view their responsibilities and gives them the necessary fuel for reaching their full potential.

When you ask someone to step into a leadership role who’s only received technical training, you’re essentially asking them to take on a job they’ve never been trained for. The real cost of not investing in leadership training means you’re giving in to the Peter Principle. It’s like hiring a completely mediocre candidate over one that was fully qualified—on purpose!

Hidden Costs

The benefits of leadership training are often the building blocks for company-wide change. Leadership training, whether at the individual or group training level, helps to boost team productivity and effectiveness. It can make a big difference when it comes to clarifying expectations, motivating employees, and pushing the team to achieve more as a whole.

Greater team effectiveness may be tough to quantify, but imagine how much more your company could accomplish if each person was working above their competency level, pushing themselves and putting in even just 10% to 20% more than they do now.

Concrete Costs

Office DisputeThe more concrete costs associated with leaving leadership training out of your company’s budget comes down to retention and replacement. If you’re not willing to invest in leadership training for your top performers, your employees likely won’t be willing to invest in your company—period. People want to work for leaders, not bosses.

Leadership training can give both your executives and employees the chance to grow their skills and experiences and better contribute to your organization’s greater goal.

Leadership Training Is Essential to Growing Your Business

The long-term benefits associated with investing in leadership training far outweigh the initial costs. It enables your organization to combat the Peter Principle, reduce employee turnover, and maximize the potential of your company’s greatest asset: its people.

Interested in taking your leadership to the next level? Check out our free eBook Leadership Down the Line to find out more about how investing in leadership training can benefit your organization at many different levels.

 

 

Leadership Down the Line How Executive Coaching Can Help You Inspire Your Executives and Their Leadership Teams

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