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Do you need to justify the costs of your proposed leadership development program? Justifying leadership training costs is easy. Yet many human resource professionals struggle with proving the benefits of their leadership development program. Below are the proven techniques, examples, and even calculators to prove the return on investment from leadership development programs.
You can watch the tutorial video, read more on the research behind the calculators, or jump right to the calculators at the bottom of this page.
If you want the evidence, statistics and data, on the many benefits and financial return on investment from leadership training, this section is for you. There have been many studies conducted that prove the benefits of leadership development programs. Some examples of these studies include:
One study by CCL found “Companies that rate highly for their investments in human capital deliver stock market returns 5 times higher than those … with less emphasis”.
Another study for leadership training participants “exhibited a 28% increase in leadership behaviors and an 8% climb in subordinate performance.”
In 2019, “businesses saw an ROI of 29% within only three months of leadership development training and an annual ROI of 415%” according to Training Industry.
A Deloitte report found companies with “stronger ‘leadership maturity’ are 11 times more likely to have a high number of leaders who can build talent for competitive advantage. And they’re 7 times more likely to have a high number of leaders who can inspire people to follow them.”
That’s great, but how do you prove the value and benefits of a leadership development program to your boss? We made it easy below, with several calculators. Each leadership development benefit calculator is based on one or more of the studies. Each ROI Calculator can be tailored to your needs. If you want help justifying the investment in leadership at your employer, let’s chat.
Below are four calculators to help you quantify the benefits of your leadership development programs. The first (Simple / ROI) is a comprehensive model. The remaining three are most accurate when used together, accounting for the benefits of all three: Talent Acquisition, Turnover Reduction, and Productivity Improvement benefits.
Calculates the anticipated benefits from a leadership development program.
Provides cost justification for leadership development training programs, based on reducing average time to hire.
Calculates justifying leadership development costs by reducing costs in turnover.
A form to calculate estimate cost savings based on productivity improvements to be recognized as a result of leadership development training.