5 Reasons for Investing in Development in 2022

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By: Brian Hallahan

5 Reasons for Investing in Development in 2022

In this blog, I want to explore five current trends that support the decision to invest in development for your leaders.  There is no shortage of events that impact business, and in this article, I am breaking down those that I have seen a rise in mention…

  1. Between 25 and 40% of employees will change jobs this year[1]. Every year, about 20-25% of employees choose to change jobs, except for 2020 due to the pandemic. 2020 triggered a pent-up demand by some for this type of transition.  While the reasons are varied, one area in which you can address is development. Employers who are investing in their people, creating a culture of development, and signaling that one has a future at an employer can arrest voluntary departures. 

We recently explored this topic in one of our webinars.  The cost of ignoring this issue can quickly add up and harm your organization.  The Society for Human Resource Management (SHRM) estimates that it costs between 50-75% of an employee’s salary to replace an entry to mid-level manager and 16% to replace a white-collar employer making ~$15-16/hr.  Multiply that by voluntary departures that may climb to 40%, and ignoring this issue can become very costly.

  1. Hybrid work will be a disrupter[2]. The hybrid workplace is a blend of on-site and home-based employees.  Some may float between these two classifications. This means we are not going back to 2019 where the workplace was static.  Businesses have successfully adapted to new ways of conducting business, and some employees enjoy the ability to forego their commute.  But just as the rapid shift to remote work was a disrupter, hybrid work will pose challenges. 

Managers connect employees to an organization.  Pulse surveys conducted by Microsoft showed a steady decline in the percentage of employees who felt connected as the pandemic extended over a year.  Are your managers prepared and ready to manage in a hybrid workplace?  Soft skills of managing others will be essential, along with being supportive, displaying a passion for the work of others, and fostering an environment that accommodates work-life balance. All of these skills make employees feel more connected to your organization.

  1. Training has been disrupted since the pandemic[3]. Training your people to work and collaborate remotely was a necessity, but it wasn’t development.  And let’s be honest, virtual happy hours are not training either.  What happened in 2020 was essential yet reactive.  Its time to move from reacting to being proactive.
  2. Better trained managers equate to workplace adaptability[4]. You’ll be ready for the next opportunity or to pivot to respond to the next disrupter while maintaining the well-being of your employees.

If you are looking for the silver lining of the recent crisis, its that it has an unparalleled ability to shine a light on weaknesses within an organization.  The pandemic showed the premium that all organizations have put on the decision-making ability and adaptability of their people.  These are not innate qualities.  And just as these are essential during a crisis, they also mean that you are more agile and opportunistic in whatever may pass for “normal times.”

  1. While Gallup is reporting that employee engagement increased in 2020 to 39% from 36%, manager engagement DECLINED 33% from 34%[5]. Manager engagement explains 70% of the employee engagement variance among teams.  This decline is a potential leading indicator of future problems.  But this isn’t a predetermined course for your organization. Investing in leadership development now with a plan to continue into next year will reverse this trend.

Each of these trends highlighted points to the importance of leadership development.  This is a topic near and dear to us at ICC.  We would love to hear from you, share our insights in a confidential conversation to discuss your unique needs.

 

 

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