By: Jessica Gendron
Many companies invest heavily in internships, viewing them as an essential part of their talent pipeline. Interns get real-world experiences, mentorship, and company resources to build their skills – all in the hopes that these interns will become full-time employees. Yet, many interns leave after the internship is over, never becoming full-time employees, taking their newfound skills elsewhere. Despite this inconvenient truth, organizations are hesitant to make similar investments in new employees and emerging leaders, citing concerns that they will leave, thus wasting the resources they diligently poured into these individuals. The paradox is clear: companies are willing to invest in temporary talent but hesitant to invest in leaders who are pivotal to the future.
This reluctance is based on a common assumption: why invest in someone who may leave? But the truth is, interns also leave, often in higher numbers than full-time employees. According to research, only about half of interns are converted to full-time hires [1], and of those, a significant percentage move on within a couple of years. Yet, companies continue to pour resources into intern programs, seeing it as a strategic investment. So why not take the same approach with new leaders who are crucial to the company’s long-term success?
Companies should invest in emerging leaders, even with the risk of attrition, because leadership development pays dividends beyond just employee retention. Even if some of these leaders leave, they often become brand ambassadors, carrying a positive image of the company into their next role. We all know those companies where we expect job candidates to be of a certain caliber simply because of a past employer.
Additionally, a strong leadership development program enhances organizational culture, making the company more attractive to future talent. The younger workforce, particularly Gen Z, increasingly prioritizes professional growth and development over high salaries alone [2].
Leadership development programs can also foster innovation, drive employee engagement, and create a ripple effect where high-performing leaders inspire and elevate others around them. Studies and real-world examples show that organizations with structured leadership programs for emerging leaders tend to have more engaged employees, which translates into higher productivity and lower turnover rates [3].
When companies show a commitment to developing their people, they build a culture of trust and loyalty. New leaders who feel valued and invested in are less likely to leave because they know they have opportunities for personal and professional development where they are. The skills they develop in leadership training programs also enhance the overall quality of their teams and improve the company’s overall outcomes.
Investing in new employees and emerging leaders is a wise investment for organizations. While employees might leave, interns might too—but the value of developing strong, capable leaders far outweighs the risks.
Learn more about Emerging Leaders Academy: For Female Emerging Leaders and other training and development programs for new employees and emerging leaders through The Center for Leadership Excellence by visiting cleindy.com.
Citations:
- The statistic that approximately 51.8% of interns are converted to full-time hires after their internship comes from research by the National Association of Colleges and Employers (NACE). This figure is reported in their internship and co-op survey, which shows that companies convert over half of eligible interns into full-time employees on average. The conversion rate has been relatively consistent in recent years, though it fluctuates slightly based on industry trends. Visit https://www.naceweb.org/ to learn more.
- According to research from Randstad and other sources, a significant portion of young workers value opportunities for personal and career advancement. For instance, 61% of Gen Z workers consider training and growth essential when evaluating job opportunities. Moreover, a sizable percentage of young workers express a willingness to leave their current jobs for roles that offer better opportunities for skill development and learning. View articles from Wharton and AJobThing.
- Leadership development programs are not only beneficial for individual career growth but also contribute to higher levels of employee engagement and retention. Programs like those implemented at companies such as Cigna and Deloitte demonstrate the positive effects of leadership development on engagement. By offering tailored development opportunities, mentorship, and rotations across departments, these companies invest in their employees’ growth, preparing them for future leadership roles and keeping them motivated. This approach also leads to higher retention rates, as employees feel valued and see a clear path for career advancement. Read LeadXand Together Mentoring Software.