{"id":95891,"date":"2023-03-16T01:53:38","date_gmt":"2023-03-15T23:53:38","guid":{"rendered":"https:\/\/factorialhr.com\/blog\/?p=95891"},"modified":"2025-05-16T17:35:48","modified_gmt":"2025-05-16T15:35:48","slug":"leadership-development","status":"publish","type":"post","link":"https:\/\/factorialhr.com\/blog\/leadership-development\/","title":{"rendered":"Why employers should invest in leadership development"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">While many talk about prioritizing employee health and company culture, little is said about<strong> supporting management teams and leadership development<\/strong>. And falling engagement and motivation rates reveal that leadership development programs are sorely needed now more than ever.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In many cases, <strong>employees are promoted to leadership positions without having the right tools, skill sets, or plans in mind<\/strong>. Too often, they are thrown into the deep end without a life jacket and expected to stay afloat. Due to their lack of experience and resources, many develop harmful management patterns, like micromanagement, which ultimately impacts their entire team.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this post, we\u2019ll talk about leadership development programs and how they can benefit everyone in your company. Additionally, we\u2019ll explain how to create and operate an effective leadership development program, starting from scratch.<\/span><\/p>\n<p><a href=\"https:\/\/factorialhr.com\/templates\/organizational-chart-template\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"alignnone wp-image-86586 size-full\" src=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2022\/10\/18161405\/Org-chart-new.jpg\" alt=\"\" width=\"525\" height=\"526\" srcset=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2022\/10\/18161405\/Org-chart-new.jpg 525w, https:\/\/factorialhr.com\/wp-content\/uploads\/2022\/10\/18161405\/Org-chart-new-300x300.jpg 300w, https:\/\/factorialhr.com\/wp-content\/uploads\/2022\/10\/18161405\/Org-chart-new-150x150.jpg 150w, https:\/\/factorialhr.com\/wp-content\/uploads\/2022\/10\/18161405\/Org-chart-new-160x160.jpg 160w, https:\/\/factorialhr.com\/wp-content\/uploads\/2022\/10\/18161405\/Org-chart-new-80x80.jpg 80w\" sizes=\"(max-width: 525px) 100vw, 525px\" \/><\/a><\/p>\n<h2><strong>The value of leadership development<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">According to Army General Norman Schwarzkopf, \u201cLeadership is a potent combination of strategy and character.\u201d Both of which are areas that good leadership development programs emphasize. Essentially, they<\/span><span style=\"font-weight: 400;\">\u00a0<strong>provide leaders with the strategic tools and soft skills that they need for success<\/strong>. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Leadership development programs might train leaders in the areas of:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Decision making<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Task delegation<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Project management<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Coaching and mentoring<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Resilience<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Influencing team members<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Negotiation and communication<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Change management<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\"><strong>A common misconception is that leadership skills are inherent.<\/strong> Those who are \u201cborn leaders\u201d are the only ones that have the right combination of skills to succeed. While certain skills might come more naturally for individuals, no hard rule dictates who is capable of being an effective leader. In fact, <strong>some of the fairest and most inclusive leaders are those that feel the most underqualified for the position.\u00a0\u00a0<\/strong><\/span><\/p>\n<p><span style=\"font-weight: 400;\">That\u2019s why leadership development plans have the power to revolutionize company culture. While you might be helping one individual to develop, you are really investing in the well-being and success of everyone they are in contact with.<\/span><\/p>\n<h2><strong>Benefits of leadership development<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">As mentioned before, leadership development programs have the potential to impact everyone on your team. In this section, we\u2019ll discuss some of the specific ways that you can benefit from investing in leadership.<\/span><\/p>\n<h3><strong>More connected company culture<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Perhaps leadership development programs have the most impact on company culture. Which, consequentially impacts every other aspect of your business. After all, without a solid company culture, it\u2019s unlikely that your business will have good internal communications or high levels of organizational commitment.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While company culture is everyone\u2019s responsibility, <strong>leaders have a great amount of influence when it comes to fostering ownership, transparency, and trust.<\/strong> Good leaders encourage participation and collaboration by valuing their team\u2019s contributions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Through leadership development, leaders can learn how to conduct one-on-one meetings, foster psychological safety, and cultivate better working relationships with team members. Ultimately, driving a high-performance culture and positively impacting your bottom line.<\/span><\/p>\n<h3><strong>Reduced turnover<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">According to a <\/span><a href=\"https:\/\/www.forbes.com\/sites\/forbesbusinesscouncil\/2023\/03\/08\/improving-employee-retention-in-2023-with-a-positive-workplace-culture\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">recent Forbes article,<\/span><\/a><span style=\"font-weight: 400;\"> between July and November 2022, <strong>more than 4 million workers in the United States quit their jobs every month.<\/strong> This number is expected to increment in years to come and for many businesses, the struggle to retain employees is real.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The article goes on to say that <strong>57% of employees who quit in 2021 did so because they felt disrespected at work.<\/strong> This might be due to a lack of transparency, general feelings of being unheard, or not being included in important discussions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><strong>Leadership development programs could be a huge step in the right direction<\/strong> for companies that are struggling with issues such as these. With the right tools, leaders will be able to <\/span><a href=\"https:\/\/factorialhr.com\/blog\/employee-empowerment\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">empower employees<\/span><\/a><span style=\"font-weight: 400;\"> and boost motivation about projects and responsibilities.\u00a0 Leaders play a critical role as mentors and can encourage their team members to reach their full potential.<\/span><\/p>\n<h3><strong>Stronger communication<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">If individuals don\u2019t know how to tackle steps step-by-step, they might become overwhelmed and quickly burn out. In addition, unclear communication can result in <strong>wasting time on unnecessary tasks, workplace hostility, and excessive confusion.<\/strong> Overall, inefficient and unproductive working patterns.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While some leaders might have well-developed skill sets in other areas, breaking down and communicating goals is not everyone\u2019s specialty. And it\u2019s not usually emphasized in traditional training or learning and development programs either. However,<strong> communication is an essential component of effective leadership and it can bring a wealth of value to your company.<\/strong><\/span><\/p>\n<p><span style=\"font-weight: 400;\">Leadership and development training can help leaders grow their project management skillsets and develop clear roadmaps to lay out projects for their teams. As a result, there will be a greater sense of collaboration, synthesis, and focus for everyone on your team.<\/span><\/p>\n<h3><strong>Smoother transitions<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Over the past few years, companies across the US have seen some rapid changes. And for many agile organizations and startups, change is the day-to-day norm. <strong>While changing workplaces can be dynamic and innovative, they can be strenuous,<\/strong> especially if leaders are unprepared to succeed in these environments.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">During times of change, it\u2019s especially important that leaders have solid objectives and can \u201chold down the ship\u201d without being afraid to try new methods to reach goals.<strong> They need to be strong, yet adaptable forces<\/strong> <strong>who are particularly adept at listening to their team and spotting new opportunities.<\/strong><\/span><\/p>\n<p><span style=\"font-weight: 400;\">While some of these skills come with time and experience, leadership development programs can help leaders to<strong> overcome some of the challenges when managing change<\/strong> and <strong>establish the structural framework necessary to complete projects<\/strong> from start to finish. Learning to manage change effectively means cultivating feelings of excitement for the possibilities, rather than feeling paralyzed and overwhelmed.<\/span><\/p>\n<h2><strong>What\u2019s the business impact?<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Aside from benefitting company culture, reducing turnover, and providing leaders with the support they need to communicate and manage change effectively,<strong> leadership development is essential for business growth and can help companies to gain a competitive edge.<\/strong> This is largely due to three factors:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">When leaders feel confident and supported, they will feel more eager to take charge in their roles and enjoy their job. This means that they will foster positivity, and have healthy and <strong>efficient communication<\/strong> with their colleagues.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">These programs help leaders to develop strategic thinking skills. Which encourages leaders to come up with <strong>ideas that go above and beyond<\/strong> the competition.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Leadership development helps leaders to delegate tasks and utilize resources effectively. Businesses will be able to benefit from more efficient and <strong>less expensive processes.<\/strong><\/span><\/li>\n<\/ul>\n<h2><strong>How to implement a leadership development program<\/strong><\/h2>\n<h3><strong>Make it a group effort<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Leadership development is a topic that impacts your entire company. Therefore, e<strong>veryone on your team should play a part in the process of creating your program.<\/strong><\/span><\/p>\n<p><span style=\"font-weight: 400;\">A good way to start is to collect information through surveys. Ask leaders about ways that they would like to feel supported and employees about their experiences working with management. Additionally, ask company executives about company targets and insights on long-term goals.\u00a0<\/span><\/p>\n<p>Gain valuable insights on how to lead a team by focusing on your people and <em>less<\/em> on the process. <a href=\"https:\/\/factorialhr.com\/sneak-peek\/poor-managers-report\">Download our free report<\/a>. \ud83d\udc47<\/p>\n<p><a href=\"https:\/\/factorialhr.com\/sneak-peek\/poor-managers-report\"><img decoding=\"async\" class=\"alignnone wp-image-158890 size-large\" src=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2025\/05\/16094523\/poor-managers-1-in-5-1024x384.png\" alt=\"\" width=\"1024\" height=\"384\" srcset=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2025\/05\/16094523\/poor-managers-1-in-5-1024x384.png 1024w, https:\/\/factorialhr.com\/wp-content\/uploads\/2025\/05\/16094523\/poor-managers-1-in-5-300x113.png 300w, https:\/\/factorialhr.com\/wp-content\/uploads\/2025\/05\/16094523\/poor-managers-1-in-5-768x288.png 768w, https:\/\/factorialhr.com\/wp-content\/uploads\/2025\/05\/16094523\/poor-managers-1-in-5.png 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/p>\n<h3><strong>Lay out the plan<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Once you\u2019ve collected information from your team, look for commonalities and patterns in their responses. This will help you to determine what you should include and emphasize in your leadership development program.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Next, write down <strong>specific outcomes and goals that you would like to come to fruition.\u00a0<\/strong> Explicitly detail the ideal qualities for leaders in your company. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">When writing these goals, consider who will participate in the program and what they should gain as a result. Participants might include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><strong>Current leaders<\/strong> who would like to develop their skill sets\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><strong>Employees<\/strong> who possess strong potential for a leadership role<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><strong>Participants<\/strong> in the company&#8217;s <\/span><a href=\"https:\/\/factorialhr.com\/blog\/internal-talent-mobility-program\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">internal mobility program<\/span><\/a><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The last step is <strong>defining the resources you will need and the specific metrics you will use to measure the program\u2019s success.<\/strong> Since leadership programs have such a global effect and impact so many moving parts, it\u2019s best to keep track of several KPIs to have a holistic idea of your progress. Here are a few to get started:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Employee satisfaction score<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Retention rate by manager<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Number of active projects<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Productivity levels<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Absenteeism rates<\/span><\/li>\n<\/ul>\n<h3><strong>Track your progress<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Although leadership development programs are long-term investments, they can lead to a big payoff. However, to get the most out of your efforts, it\u2019s best to regularly check in and keep track of your progress.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Tools like <\/span><strong><a href=\"https:\/\/factorialhr.com\/hr-reports\" target=\"_blank\" rel=\"noopener\">automated reporting software<\/a><\/strong><span style=\"font-weight: 400;\"><strong> can help to visualize KPI changes from month to month.<\/strong> Additionally, quarterly performance reviews and climate surveys can be excellent reference points.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Regardless of your business&#8217;s strategy or the metrics that you choose to monitor, having a clear system in place is key to having a successful outcome.<\/span><\/p>\n<h2><strong>The future of leadership development<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">To conclude, here are some key takeaways:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Leadership development programs can impact <\/span><b>company culture<\/b><span style=\"font-weight: 400;\"> and your <\/span><b>business\u2019s bottom line<\/b><span style=\"font-weight: 400;\">. Effective leaders are known to <\/span><b>reduce turnover<\/b><span style=\"font-weight: 400;\"> and <\/span><b>cultivate high-performing teams.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Prioritizing leadership skills can be <\/span><b>advantageous for agile teams <\/b><span style=\"font-weight: 400;\">and teams experiencing rapid change.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Using <\/span><b>automated reporting tools<\/b><span style=\"font-weight: 400;\"> are beneficial while making adjustments to your program and creating and tracking goals.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\"><strong>When leadership development is a priority, everyone&#8217;s a winner.<\/strong> It\u2019s good for your team, good for your company, and good for your long-term business health.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To have the maximum impact and Return On Investment for your efforts, it\u2019s essential to have the right tools on hand. <strong>Factorial\u2019s all-in-one software features OKR tracking, custom reports, automated performance reviews, and more. <\/strong><\/span><strong><a href=\"https:\/\/factorialhr.com\/request-demo\" target=\"_blank\" rel=\"noopener\">Request a free demo now<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>While many talk about prioritizing employee health and company culture, little is said about supporting management teams and leadership development. And falling engagement and motivation rates reveal that leadership development programs are sorely needed now more than ever. In many cases, employees are promoted to leadership positions without having the right tools, skill sets, or<a href=\"https:\/\/factorialhr.com\/blog\/leadership-development\/\" class=\"read-more\"> [&#8230;]<\/a><\/p>\n","protected":false},"author":155,"featured_media":95892,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[348],"tags":[],"class_list":["post-95891","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-culture-engagement-2"],"acf":{"topics":false},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.5 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Leadership Development: Why employers should invest - Factorial<\/title>\n<meta name=\"description\" content=\"Leadership development: Benefits, outcomes, business impact. 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