How 21st Century Companies are Increasing Performance, Productivity and Profits
Posted on 29 September 2015. Reprinted with permission from Authority PressWire.
A September 2015 article in Forbes stated that employees don’t leave jobs, they leave managers and 41% of the employees surveyed cited a lack of recognition as their primary reason for leaving the company. A CBS money report investigation revealed that replacing an employee could cost the company nearly 20% of their annual salary which leads to lower profits. To combat this statistic, companies are turning to leadership development and training from outside consultants and coaches.
According to IBISworld, business coaching is a 12 billion dollar industry with a annual growth of 6.8% and is expected to grow faster than the overall economy through 2020.
Internationally known Executive Leadership Coach, Speaker and author of the #1 Best Selling book, “Boss or Leader”, Dave Ferguson says, “The lack of leadership development and poor succession planning often leads to the departure of key people for better growth opportunities in companies that develops leaders. Like any other part of a business, leadership development should be a system in the organization, not an event. Without the proper systems in place, no business can be successful long-term”
As the millennial generation enters the workforce, they are looking for organizations with training and development platforms that will assist them in furthering their growth both personally and professionally. A recent study of Executive Coaching in a Fortune 500 firm by MetrixGlobal reported a 529% return on investment and significant intangible benefits to the business.
A 2001 study on the impact of executive coaching by Manchester Inc. showed an average ROI of 5.7 times the initial investment or a return of more than $100,000, according to executives who estimated the monetary value of the results achieved through coaching*.
Among the benefits to the companies that provided coaching:
- Productivity (reported by 53% of executives)
- Quality (48%)
- Organizational strength (48%)
- Customer service (39%)
- Reducing customer complaints (34%)
- Retaining executives who received coaching (32%)
- Cost reductions (23%)
- Bottom-line profitability (22%)
“It is proven that Companies with a strong leadership bench will outperform the competition and exceed business goals. Leadership coaching increases organization effectiveness and builds a firm foundation for developing future executives and building a quality driven leadership team,” said Dave Ferguson
In his book, Boos or Leader, Dave says “If you’re a Boss, 99% of your employees come to work for one reason, and its not you…it’s a paycheck. Want to change that, become a leader.”
Moving forward companies will find that they will have an increase in retention, increase in profits and an increase in productivity with quality leadership development programs and executive coaching in place.
To gain more information, contact Dave Ferguson at (704) 907-0171 or Dave@LivingToLead.com