In today’s dynamic business landscape, companies face a crucial decision – whether to invest in young, emerging leaders who may not stay with the company long term. While it may seem counterintuitive to invest in the development of talent that could potentially leave, studies and data reveal that investing in these emerging leaders is not only beneficial but also essential for an organization’s long-term success.
1. Fueling Innovation and Adaptability:
Young emerging leaders bring fresh perspectives, innovative ideas, and an ability to adapt to changing environments and trends. According to a study by Deloitte, organizations that actively foster innovation are 30% more likely to be market leaders. Nurturing these emerging leaders helps them to feel empowered to speak up and share new ideas. Companies can tap into the creative potential of these individuals, driving growth and staying competitive in a rapidly changing business environment.
2. Attracting and Retaining Top Talent:
The job market today is highly competitive. Young professionals are more inclined to join companies that invest in their growth and development. A LinkedIn survey found that 93% of employees would stay longer at a company that invests in their careers. By demonstrating a commitment to emerging leaders, organizations become more appealing to top talent, making it easier to recruit and retain the best and brightest.
3. Enhancing Employee Engagement:
Investing in young leaders sends a powerful message to your workforce: that the company values growth and progression. A Gallup study revealed that engaged employees are 59% less likely to look for a job with a different organization. When employees believe in the potential for career advancement within their current company, they are more likely to stay and invest in their roles.
4. Developing a Strong Leadership Pipeline:
A succession plan is crucial for an organization’s long-term stability. By investing in young leaders, you create a pipeline of potential future leaders who are already familiar with your company’s culture, values, and objectives. A PwC survey found that 77% of CEOs are concerned about the availability of key skills in their organizations. Developing internal talent ensures that you have a pool of capable leaders when the time comes.
5. Boosting Organizational Performance:
A study by the Center for Creative Leadership found that companies with strong leadership development programs outperform their peers by a substantial margin. Investing in young leaders leads to improved team performance, increased productivity, and better decision-making, ultimately resulting in a more successful organization.
6. It’s Cost-Effective:
While it may seem counterintuitive to invest in young talent who might leave, studies show that the cost of employee turnover is high. According to the Society for Human Resource Management, it can cost 6 to 9 months’ salary on average to replace an employee. Investing in development programs for young leaders is a more cost-effective way to ensure a return on your investment and lower turnover rates.
Investing in young emerging leaders, even if they may not stay with the company long term, is a strategic and wise choice. The data are clear – investment leads to innovation, employee engagement, and the development of a strong leadership pipeline, all of which contribute to organizational success. Additionally, it attracts and retains top talent, enhancing the company’s reputation and competitiveness in the job market.
Organizations are quick to cut leadership development and training programs when budgets get tight. Those decisions are often short-sighted and have long-term repercussions for the organization – some that aren’t realized until it’s far too late.
The Center for Leadership Excellence recognizes how important investing in this unique group of individuals is for any business. We have several different training and development options for the emerging leaders of your organization including:
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- Emerging Leaders Academy Exclusively for Female Leaders: Designed to address unique challenges female leaders face and connect women across industry and organization.
- Emerging Leaders Academy for Organizations: Custom-designed for organizations to be hosted with its own employees and developed to address your organization’s unique competency goals and learning outcomes.
- Leadership Training Programs: 60-90 minute session (held in person or virtually) for your emerging leaders aimed at equipping them with specific skills or competencies.
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Learn more about The Center for Leadership Excellence’s Emerging Leaders Academies or training programs by contacting Jessica Gendron, President at jgendron@cleindy.com or 317-264-4119.