Leadership Development…the forgotten employee benefit

Why is it that when we talk about employee benefits, we often fail to incorporate the most important one into the benefits package…development of human capital? Leadership development may be the single most important benefit to include, because it will not only create better employees, but more leaders. This is paramount when seeking new employees or retaining existing ones. As a business owner or manager, your goal and expectation is to have excellent employees.

In a recent Google® search on why employees leave their jobs, the reasons discovered were not all that surprising, but were unfortunate. From a well-known author such as Marcus Buckingham (author of “Discover Your Strengths”) to universities including Georgetown University, the causes include (not in any rank order):

Job dissatisfaction/unmet expectations – employees feeling under-appreciated or under-valued.
Lack of challenge – employers should identify good performers, utilize their talents, and involve them in decisions.
Being passed over for promotion – are you aware of the career goals of your employees?
Hearing that the company is being acquired – employees need basic communication.
Lack of confidence in the company or senior leaders – are your employees aware of the company’s vision, mission, and image, and are they a part of the culture?
Having a major disagreement with the boss – disagreements do happen, but how are they handled?
Unfair treatment – deep down, fair treatment is an innate desire of every human being.
Dissatisfaction with co-workers – are you keeping an eye on the Bunsen burners to know the chemistry of your employees and how they are working together?
Lack of coaching and feedback – employees want to learn and grow, and they’re looking to you, their boss, to help.
Compensation – yes, compensation is a factor, but not the primary one.

As previously stated, these causes, while not surprising, are unfortunate since every single one goes back to relationships and, most importantly, that between the employee and his/her boss. “People leave managers not companies,” write authors Marcus Buckingham and Curt Coffman. While we all want and need to be fairly compensated, I have personally stayed in a job that didn’t pay as well, but I was valued and treated fairly by my boss. I enjoyed my job and would, therefore, go the extra mile to get the needed work completed. This was a direct result of his leadership.

Let’s revisit our list…we’ve determined that at the root of each cause is the lack of relationship and leadership. It stands to reason that if you develop your leaders, you will, by default, develop your employees. These employees will be more productive, happier, and, therefore, stay with you because you have invested your time, energy, and money in them.

Maybe now, you’re saying, “So what? So they leave…good riddance…I’ll just hire their replacement.” This is your prerogative, but what will it cost you? HR studies are saying it costs one to two times the employee’s salary and benefits. Why? Because you are not just replacing their salary, you must also factor in additional costs: impact on bottom line; exit/termination costs; HR costs including marketing and interviewing for the new hire; loss of productivity due to this vacant position; customer dissatisfaction due to lower quality service; training the new hire – regardless how qualified – they are new to your company, their position, and, therefore, will need acclimating to your company values, mission, and culture. Finally, you will feel the cost of lost ideas and business knowledge, as well as the negative impact to your bottom line. If you’re fortunate, it’s only one to two times their salary and benefits. With these estimated costs, isn’t it worth the much smaller investment of including leadership development into your employee’s benefit package?

Yes. Then what is “leadership development?” Is it sending the employee to an all-day training? It could be, but I believe “development” is much deeper and long-term. Let me offer you an analogy which I have long been a proponent of – the investment in the person.

My nephew Jonathan is 10 and he’s hungry. I could take him down to the local restaurant and get him a fish sandwich for lunch. Or, I could take him down to the lake and spend several days with him teaching him how to fish. (Grant it, I would get him a sandwich for lunch today, I wouldn’t let him starve!) Taking him to the restaurant is much like training. In most training programs, you teach an individual a process or a skill. Do this (task) this way (process). Training is a great tool for teaching software. Development, on the other hand, is much more intentional, creative, and holistic and deals with changes in behavior. In developing leaders, I help them figure out solutions and methods – I teach them to fish. The goal is to feed them for a lifetime, not just for today. I help them develop the tools. Some of the words associated with “develop” in Webster’s Dictionary include: manifest, elaborate, harmonic change, possibilities, create, produce, over time, promote growth; unfold gradually, to become affected. These are the types of words that give you a broader picture of leadership development. Areas for leadership development may include:

· Communication.

· Motivation.

· Conflict-resolution.

· Problem-solving.

· Attitude.

· Goal-setting.

· Time-management.

· Decision-making.

In a recent conversation with a representative from Greater Louisville, Inc., our local Chamber of Commerce, we spoke about the new branding campaign for Louisville – “the city of possibilities.” This region is rich with leadership development opportunities through community-based development programs, as well as one-on-one leadership coaching. Regardless of the method, choose to include leadership development into your employee benefit package. The trade-off in cost is well worth it. You will spend pennies on dollars and think of the increased customer satisfaction as a result of valued and happy employees. This is just the icing on your business cake.

Last month, we talked about leaders having a teachable spirit, and I challenged you to expand your teachable spirit. Find one thing to learn – I would love to hear your feedback on this challenge. This month, I challenge you again: