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Growth through people

Return on investment in leadership development…

Return on investment of leadership development
DELIVER FINANCIAL RETURN

We’ve designed YourBrand™ to drive return on investment in leadership development:

  • Developing the skills essential to increased personal, team, and leadership effectiveness to drive business performance
  • Delivering a highly personalised and contextual programme, linked to your brand and business strategy, with no development costs

It’s a simple equation, but unfortunately less than 10% of organisations actually measure the effectiveness of their training.1,2

And, those that do, rarely go beyond the smiley sheets that give immediate feedback at the end at the end of a workshop, rather than assessing the effectiveness of the training back in the workplace.

We believe it’s essential to evaluate the value of training on business performance.

WHAT CAN BE MEASURED?

The biggest challenge is always to identify which outcomes, benefits, and final results are most closely linked to the training programme. What can easily be measured effectively over the long term?

Not all measures are appropriate to all programmes – and we’ll agree the appropriate metrics with you during our understand phase – but they include:

Financial Performance

Organisations with strong leadership are 2.3x more likely to financially outperform their peers.4

Strong leadership drives the bottom line, and financial performance is an essential component of ROI. Ideally we’d analyse this at an organisational and at a team level.

Employee Engagement

Nearly half of South African employees are actively disengaged at work.5

Leadership accounts for at least 70% of the difference in employee engagement between teams.6

A 5% increase in employee engagement results in a 3% growth in revenue.7

Employee engagement is one of the most valuable indicators of company health and leadership performance. If you’re not currently running a survey, or not actively acting on the results, we can help.

There’s also a YourBrand™ module to help you optimise employee engagement.

Improved Communication

0% of senior managers in South Africa thought that management communication needed to improve… but 76% of their employees want improved communication from their management!8

Communication should be a component of your employee engagement survey. By building self-awareness, and focusing on connection through communication throughout each YourBrand™ module, improved communication across the business is a key metric to measure.

Employee Turnover

It costs 30-120% of their annual salary to replace someone when they leave.9,10

3x more millenials chose training and development vs cash bonuses as their first choice of employment benefit.11

 andLowered productivity, extra strain on the remainder of the team, decreased morale, interview, on boarding time and costs, the time taken for the new employee to get up to speed, the knowledge and workplace equity that’s lost… replacing staff costs money.

Employee engagement drives retention, and training and development is an essential component of keeping employees thriving and engaged at work.

Other Metrics

Depending on your product or service, other metrics you can evaluate include reduced waste, increased sales, higher quality ratings, increased customer satisfaction, fewer staff complaints, reduced time to market etc.

You can’t manage what you can’t measure.

Peter Drucker
YourBrand™ binder

REFERENCES:

  1. McKinsey & Company (2010). Building organizational capabilities. McKinsey Quarterly. (mckinsey.com).
  2. CIPD (2015). Learning and development: Annual survey report. (cipd.co.uk).
  3. Kirkpatrick, D.L., Kirkpatrick, D.J. (2009). Evaluating training programs: The four levels (3rd Edition). San Fransisco: Berrett‑Koehler.
  4. Deloitte (2015). Human Capital: Deloitte leadership powered by Kaisen. (deloitte.com).
  5. Gallup (2013). State of the global workplace: Employee engagement insights for business leaders worldwide. (gallup.com).
  6. Gallup (2015). State of the American manager: Analytics and advice for leaders. (gallup.com).
  7. Aon Hewitt (2015). 2015 trends in employee engagement. (aon.com).
  8. PDT (2015). The state of employee engagement in South Africa. (pdtsa.co.za). (download).
  9. PwC South Africa (2014). HR Quarterly: The real cost of losing key staff – can you quantify it?. (pwc.co.za)
  10. Kantor, J. (2016). High turnover costs way more than you think. Huffington Post. (huffingtonpost.com).
  11. PwC (2011). Millennials at work: Reshaping the workplace. (pwc.com).