Why UK businesses need to invest more in leadership development
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In 2022, learning platform 360Learning found that nearly three-quarters (72%) of UK managers who recently quit their jobs would’ve stayed if adequate training and support were provided. The survey additionally noted that nearly half (44%) of the managers polled said they had never received adequate training during their time at their companies.
These are alarming but unfortunately unsurprising numbers. According to a research report from the Chartered Management Insitute (CMI), the UK has globally ranked well behind key competitors such as the US, Japan and Germany in terms of leadership capabilities.
Good management and leadership skills are needed to turn this productivity deficit around and unlock important drivers of growth such as technology adoption or on-the-job learning. Below, we take a closer look at the benefits of investing in leadership development.
Why leadership development matters
The CMI’s research report additionally points out that 96% of managers and 89% of directors say management and leadership roles are important for shaping the UK’s economic recovery in 2021. This was a critical year as the UK faced one of the highest infection and fatality rates, one of the worst recessions, and one of the highest number of days lost to lockdowns in the world.
Nick Hernandez, 360Learning CEO and founder, agrees and highlights new working trends such as hybrid working and the four-day week that managers must know how to adapt to. Specialist training to support managers in this transition is key — otherwise, businesses risk losing more of the very people they need the most.
Benefits of leadership development
One of the most prominent benefits associated with leadership development is employee retention. The Confederation of British Industry finds that businesses that develop the strengths of their staff are able to reduce turnover by up to 72%. This simultaneously increases an organisation’s ability to deal with gaps in the talent pipeline and reduces the costs associated with turnover.
A strong leadership development scheme additionally establishes your company as an employee-conscious business. This allows employees to see personal and professional growth within the company, which thereby boosts employee engagement. Employee motivation is also found to increase when employees believe that their employer genuinely cares about their growth and career development.
Research by Monster finds that 18% of UK employees planned to quit their jobs due to boredom. Providing development opportunities across a broad range of subjects can help reduce the issue of role stagnation leading to resignation. This will simultaneously introduce a company culture of innovation wherein experimenting with new approaches and techniques, including processes of successes and failures, is embraced and encouraged.
Programs of leadership development
Some private companies have taken a direct coaching approach to leadership development. Here, executive leadership development is crucial due to its ability to maximise C-suite executives who have a wealth of experience and expertise. These executives then help the new generation of leaders realise their potential, increase self-awareness, and create lasting change. See how Upwork’s HR team strongly depends on peer coaching and mentoring from more senior-level leaders to lead a training program to help new managers. Potential leaders are given the opportunity to support projects purely for the learning experience.
Meanwhile, government investment in higher-level skills and a supportive policy framework to enable private investment continues to be in the works. Two new leadership programmes costing £20 million were launched in 2020 to improve small business leadership and problem-solving skills in preparation for the crisis of 2021. These programmes may have contributed in small part to the growth of the UK economy by 7.5% in 2021, with the country mostly recovering from its pandemic plunge.
As inflation rates made an unwelcome return in 2022, it is continuously clearer that UK businesses invest more in leadership development. This will guarantee the survival of UK businesses and the prosperity of the UK economy moving forward.