The Cost of NOT Coaching Your Leaders
According to the recent Global HR Capability Project, out of over 90 human resources capabilities, the one that rates the highest is coaching, and the second-highest scoring capability also relates to coaching of leaders.
The workplace is changing. The days of long commutes to an office are now shifting to allow more people to work from home, or from anywhere at any time, for that matter. Employees want flexibility, yes. But, even more importantly, they want autonomy over their choices when it comes to work.
Employers are beginning to understand that, if they want to keep employees, big changes need to be made. These changes need to include not only the opportunity to work autonomously, but to recognize the need for leadership who can fully support the holistic needs of employees. One of the most effective ways to address this need is through leadership coaching.
While coaching is widely recommended as one of the most effective ways to develop your leaders, and could actually be the key to retaining talent, there’s one frequently cited reason deterring leadership coaching adoption – the cost. First, it’s important to understand that leadership coaching is not the same as high-touch executive coaching. The programs are affordable, scalable, and impactful.
Employers are beginning to understand that, if they want to keep good employees, big changes need to be made. These changes need to include the well-being of those employees. One of the most effective ways to address this need is through leadership coaching.
Leadership coaching is an investment in your people, and the benefits far outweigh the initial cost, particularly in this post-pandemic arena where businesses are scrambling to hire and retain excellent staff. Without the advantage of leadership coaching, you risk spending a lot more over time than you would possibly save by not investing in your leaders.
So, what can leaders do to hold onto their top talent amidst the Great Resignation?
Provide better leadership.
By missing the essential ingredient of leadership coaching in your learning & development stack, you will incur other costs. For example:
The cost of high employee turnover
The cost of replacing an individual employee can range from one-half to two times the employee’s annual salary. In fact, U.S. businesses, overall, are losing about a trillion dollars every year due to voluntary turnover, according to Gallup.
As recently as September 2021, 65% of America’s working population said they were actively job searching – a sharp increase from just 36% in May. The highest quit rates exist among disengaged workers, regardless of pay and benefits a business might offer. Employees want to feel valued by their employers, they want jobs that are flexible and understanding of life situations, and they want to feel like they belong to a cohesive team.
Replacing employees is expensive, so you’ll want to retain that top talent when you have it. Employee retention requires making employees feel valued, and not just utilized for their productivity. Leadership coaching, one of the most personalized learning and development investments you can make in your employees, is among the most impactful strategies to ensure your employees feel valued, stay engaged, and want to do their greatest work at YOUR company.
The cost of driving productivity amid a poor work culture
Your leaders are the flag bearers of your company’s culture and trickling it down to the grassroot employee ranks. Without coaching, leaders will struggle to manifest the desired culture of that company. As a result, the employee is likely to feel left without adequate support, meaningful work relationships, or strong loyalty bonds. Not only does this cause employee turnover, but it also creates an environment that’s not conducive for productivity. You will find yourself funneling investments into boosting productivity – such as monetized rewards, incentivized targets, company gifts, time off, etc. – when what you actually need is properly coached leadership. Without the leadership skills developed through coaching to engage your team, the rewards and gifts are less meaningful and impactful.
You will find yourself funneling investments into boosting productivity – such as monetized rewards, incentivized targets, company gifts, time off, etc. – when what you actually need is properly coached leadership.
The cost of a lack of purpose
In a recent survey, nearly two-thirds of employees said that COVID-19 has caused them to reflect on their purpose in life. Nearly half of those said they are now reconsidering the kind of work they do. Additionally, millennials were three times more likely than others to say that they were reevaluating work, according to a report by McKinsey & Co.
People who live their purpose at work are more productive than people who don’t, the report stated. These people are also healthier, more resilient, and more likely to stay at the company. In fact, research has found that 70 percent of employees said that their sense of purpose is defined by their work. A systemic coaching program will help align your company, your teams, and your individual employees with this sense of purpose, resulting in a more satisfied and productive organization.
The risks of paying forward negative traits
Managers and company leaders will inevitably influence work culture and values. So, it is vital to ensure that you model and endorse the most desired behaviors. If a leader is lacking in areas like psychological safety and self-care, they will create a team culture where those values are non-existent or not valued. This is a result of a lack of self-awareness coupled with a lack of commitment to foster a team culture aligned to company values, which can be effectively addressed through a systemic leadership coaching model designed to align your employees to desired outcomes, culture, and purpose. Just as effective leadership development creates “coaching neighborhoods” – i.e., pockets of learning, development, and self-improvement that pays forward coaching benefits to positively impact organizational culture as a whole, NOT investing in coaching will multiply negative traits in a similar manner.
A well-thought-out leadership coaching program will help garner impressive ROI, including that of company culture and employee engagement, and unlock a surprising amount of bottom-line benefits for your company and, more importantly, help you retain your talent.
Companies must learn to look beyond the apparent costs of coaching and recognize the very real cost/risk factors they may experience without it. A well-thought-out leadership coaching program will help garner impressive ROI, including that of company culture and employee engagement, and unlock a surprising amount of bottom-line benefits for your company and, more importantly, help you retain your talent.
A commitment to great leadership at every level of your organization is the key to unleashing your employees’ potential and putting your company in the best position to compete, to win, and to thrive. Now is the time to take action to upskill and reskill your leaders to navigate unchartered territory and be prepared for the workplace of today and tomorrow.
Are your leaders ready for the #futureofwork? Because it’s here.