Does Leadership Development Pay?
Of course, you might ask if organizations that develop their leaders to rise to the challenge actually perform better. A McKinsey survey found that companies scoring in the top quintile of talent-management practices outperform their industry’s mean return to shareholders by a remarkable 22 percentage points. (4) In addition, Laurie Bassi and her colleagues measured the effect of spending on employee education by following the stock prices of 575 publicly traded firms. They found that companies that invested the most in their employees outperformed the S&P 500 by 17 to 35%. (5). Finally, Bob Eichinger and his colleagues reviewed the research on effective human resource interventions and reported that training does indeed pay. (6) They cite a four-year study by Morrow and Rupinski, which found a mean ROI of 45% for managerial training and 418% for sales/technical training. (7) The moral of the story is that development does pay if it’s based on research-proven tools What’s next? Let me
