If engagement and retention are your challenges, could developing leadership skills in more of your team be the solution?

[Gallup](https://www.gallup.com/workplace/349484/state-of-the-global-workplace.aspx#ite-506897) finds that 70% of a team's engagement is influenced by managers. It follows that upping the leadership skills of managers could improve engagement.

Meanwhile, a LinkedIn [report](https://www.linkedin.com/posts/linkedinlearning_94-of-employees-say-that-they-would-stay-activity-6372632932300963840-k9hI/) revealed that 94% of employees would stay longer at a company that invests in their career development. Upping the leadership skills of employees would help to retain your top talent (impact players).

It’s as clear as day. Developing leadership skills makes for much better managers and much happier staff. Both are good for the stability and success of organisations. Yet almost [80% organisations](https://teamstage.io/leadership-statistics/#:~:text=Nearly%2080%25%20of%20companies%20report%20there%20is%20a%20leadership%20development%20gap) report a leadership development gap!

Let's look at why it’s worth investing in skills development across more of your team.

**The danger of poor leadership skills**

The negative impact of poor leaders is so profound one [study](https://journals.sagepub.com/doi/pdf/10.1177/2158244019855858), titled _"Ineffective-Leader-Induced Occupational Stress,"_ suggested it could harm physical and mental health.

_"Emotional states of occupational stress (e.g., anxiety, frustration, resentment, and fatigue) were found to be prominent aggravating factors in forming a psychological conflict or emotional disturbance that can develop into a disease or ill health." (Huerta-Franco et al., 2013)._

With managing psychosocial hazards at work now a [Work Health Safety legal requirement](https://www.safeworkaustralia.gov.au/safety-topic/managing-health-and-safety/mental-health/psychosocial-hazards) for employers, this is important to note.

But, the health of the business suffers also. 

As the study concludes:

_"Stress effects on employees decrease organisational commitment and productivity leading to increased absenteeism and turnover, costing organisations’ profits." (Schyns & Schilling, 2013; Shamas-ur-Rehman & Ogunlana, 2009)._

**How developing leadership skills is ‘low hanging fruit’**

[LinkedIn](https://www.linkedin.com/pulse/leadership-development-low-hanging-fruit-hr-ty-j-hammond/) called leadership development “the low hanging fruit” of competitive advantage. That is, it is the one area of focus that can immediately improve the employee experience.

And, as former Salesforce Global Growth Evangelist Tiffani Bova told our masterclass, [employee experience](https://www.thegrowthfaculty.com/blog/employeeexperience) factors can drive up revenue by 50% or more, and profits by nearly as much.

Studies back this up, and [show](https://www.ccl.org/articles/leading-effectively-articles/why-leadership-development-is-important-4-reasons-to-invest/) leadership development:

*   Improves bottom-line financial performance.
*   Attracts and retains talent.
*   Drives strategy execution.
*   And increases success in navigating change.

Step one is knowing how much [your leadership style affects those around you](https://www.thegrowthfaculty.com/blog/leadersbringweatherpositiveleadership). Step two is developing those skills that make you more capable and effective. Step three is rolling out leadership skills training across the organisation.

**6 Reasons to Develop Leadership Skills in More of Your Team**

 **1. Improves Employee Engagement**

It’s worth saying it again. Leadership development plays a vital role in fostering engagement. Leading in a way that promotes a culture of inclusiveness and motivation allows team members to feel a sense of ownership and connection with their organisation's goals.

A Gallup survey of [“quiet quitters”](https://www.thegrowthfaculty.com/blog/quietquitting) found 41% would change factors relating to leadership and culture. Responses included:

_"For everyone to get recognised for their contributions," "I would like it if the managers were more approachable, and we could talk openly," "They should grant more autonomy in the work to stimulate everyone’s creativity," "I would like to learn more things, but the work I do is quite repetitive," "I just wish they respected me more," "Giving everyone a fair chance in getting promoted," "Clearer goals and stronger guidance."_

Gallup's research also indicated that companies with high levels of employee engagement see a 21% increase in profitability.

**2\. Helps With Retention**

Businesses want to know [how to not lose their high value employees](https://www.thegrowthfaculty.com/blog/retentionofhighvalueemployees).

Founder of TalentCode HR Trudy McDonald told our masterclass that [36% of employees](https://www.ibm.com/downloads/cas/5BWJYEKZ#:~:text=While%2055%25%20of%20employees%20scored,%25)%20(see%20Figure%202).) named 'continuous learning opportunities' as a **key engagement factor** , alongside work-life balance, career advancement, employer ethics, and organisational stability.

She says that when employees take part in training programs, they feel noticed and appreciated, they improve their knowledge of the role, their confidence in their own abilities, and they widen and deepen their skillset.

Leadership development programs (such as those offered by [Growth Faculty membership](https://thegrowthfaculty.com/#plans)) is a tangible commitment to this investment, nurturing high-potential team members, and ensuring they see a long-term future within your organisation.

**3\. Improves Agility & Innovation**

[Research](https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/the-five-trademarks-of-agile-organizations) by McKinsey & Company emphasises that organisations ditching the hierarchy and promoting a clear, flatter structure are more innovative and agile.

_“An agile organisation comprises a dense network of empowered teams that operate with high standards of alignment, accountability, expertise, transparency, and collaboration.”_

Leadership skills are democratised, if you will, allowing more individual responsibility, flexible responses to market changes, and opportunities for innovation.

**4\. Is Proven to Have Good ROI**

According to LinkedIn, Training Magazine [data](https://www.linkedin.com/pulse/investing-employee-training-smart-business-strategy/) shows companies that invest an average of $1,286 per employee on training and development saw an average of 24% higher profit margins than companies that invested less.

Reduced turnover rates, retaining high value employees, increasing employee performance and improving their efficiency are given as probable factors behind this.

Investing in leadership development is not merely an expenditure but a strategic move that leads to increased profits and competitive advantage.

**5\. Builds a Talent Pipeline**

We’ve already heard organisations say they’re experiencing a leadership skills gap.

And a Gartner [survey](https://www.gartner.com/en/newsroom/press-releases/2021-10-20-gartner-survey-reveals-hr-leaders--number-one-priorit) on HR trends and priorities back in 2022 revealed 68% of HR leaders chose:

*   **“Building critical skills and competencies”** as their number one priority.
*   **“Current and future leadership bench”** their number 3 priority, just behind change management.

Businesses shouldn’t wait until there’s a crisis (or golden opportunity) to ensure their team members have leadership skills to help pull them out of that crisis or grasp the moment.

Prepare your high-potential team members for future leadership roles, ensuring a seamless transition and continuity in your organisational success.

**6\. Improves Leadership in a Remote VUCA World**

COVID-19 saw a massive shift towards remote/hybrid working and digital collaboration. It was one example of how we now lead in a Volatile, Uncertain, Complex and Ambiguous (VUCA) world. This new reality has amplified the need for skills training for [the virtual leader](https://www.thegrowthfaculty.com/blog/Thevirtualleaderbooksummary), including the importance of [purposeful leadership](https://www.thegrowthfaculty.com/blog/purposefulleadership) to maintain meaning and company culture in a dispersed workforce.

The live virtual masterclasses offered by Growth Faculty recognise and address this shift, training team members to build communication and collaboration skills essential for remote team management.

In a nutshell, the pandemic has not just made leadership essential; it has redefined what leadership means, making programs like this not just beneficial but necessary in the post-pandemic business environment.

**Invest in Your Learning With Membership to Growth Faculty**

Want to keep up with the latest ideas and thinking from the brightest minds in the world?

Discover your potential by learning from the best with [Growth Faculty annual membership](https://join.thegrowthfaculty.com/#plans).

Unlimited access to dozens of **live virtual masterclasses** on trending topics around work, career, leadership, and culture; such as psychological safety, burnout, difficult conversations, strategy and execution, micromanaging, accountability and more, with opportunities to chat, ask questions of the speaker, and interact with your peers.

Unlimited access to our **multi-module leadership programs** at both emerging and senior leader level.

Discounts on tickets to be in audiences at our **Global Headliner in-person events** featuring top name speakers.

Year-round **leadership content on demand** with replays of our live events, highlight reels, interviews with top business authors, and more.

Join a community of knowledge seekers who are inspired by the best. See our [latest program of live virtual and in-person events](https://www.thegrowthfaculty.com/event.php?eventId=a1J4G000008xoC7&promoCode=Blog&utm_source=TGF&utm_medium=blog).

Photo by [Jason Goodman](https://unsplash.com/@jasongoodman_youxventures?utm_content=creditCopyText&utm_medium=referral&utm_source=unsplash) on [Unsplash](https://unsplash.com/photos/man-smiling-in-room-fXVx1opWGxM?utm_content=creditCopyText&utm_medium=referral&utm_source=unsplash)

6 Reasons to Develop Leadership Skills in More of Your Team

Leadership development “the low hanging fruit” of competitive advantage

Keep informed
Stay Inspired

6 Reasons to Develop Leadership Skills in More of Your Team

Leadership development “the low hanging fruit” of competitive advantage

Keep informedStay Inspired

Keep informed
Stay Inspired