Beware! Just when you need your top performers the most, recent research indicates that they’re waiting for the job market to improve so that they can leave your company! According to a recent study, 32% of US Workers were seriously considering quitting their jobs, which is up sharply since the recession hit. As demand for your business increases, you will need those top performers to give you a competitive advantage!
Why do employees want to leave their jobs? According to another recent study by the Business Communicators Research Foundation and Buck Consultants, employees cite poor leadership and individual supervisors as their top reasons for low commitment. The great news is that the act of “developing leaders” is something that businesses can control, unlike many external factors businesses can’t control! One very effective way to develop leaders and increase employee commitment is to incorporate Leadership Coaching into your organization development plan.
Leadership Coaching builds upon the innate strengths of the leaders, increases self-awareness, and results in increased personal accountability. Numerous studies have shown that Leadership Coaching generates the following benefits:
- Improved relationships with direct reports, immediate supervisors and clients
- Increased job satisfaction, teamwork, productivity and employee retention
When the economy seems less than ideal, it’s the ideal time to invest in your employees! Organizations that cut back on employee development programs are less likely to attract the best people and gain a competitive advantage. According to the American Society of Training and Development, companies who invest in developing their people consistently outperform companies who do not, by an average of 35% every year!
It’s cost-effective to use Leadership Coaching to invest in your leaders! Consider the following research:
- MetrixGlobal found that on average, Fortune 500 Telecommunications Company’s received 529 percent more than their initial investment in coaching.
- Metropolitan Life Insurance Company saw a 35 percent average increase in sales productivity among salespeople who had participated in an intensive coaching program. They received $3.2 million in measurable gains from $620,000 they invested in their coaching program!
- A study of Fortune 100 executives found that coaching resulted in a return of almost six times the program cost, according to a study by Manchester Consulting Group.
- A study by Merrill Anderson calculated a return on their coaching investment in excess of 500 percent.
For an even bigger “bang for the buck”, combine traditional training programs with follow-up coaching. The Manchester Group found that training alone accounted for a 22 percent increase in productivity, and the combination of coaching and training resulted in an 88 percent increase in productivity!
Research shows that investing in your employees is one of the most cost-effective, proactive strategies you can take during turbulent economic times. Introducing Leadership Coaching into your development strategy can unleash the strengths of your leaders and enable you to win that “war for talent”!
Copyright Denise Scotti-Smith 2011. All Rights Reserved.