Leading People Out

As purpose driven leaders, we care about the people on our teams. When employees choose to leave, it's hard to imagine that we might have unknowingly played a role in their decision to exit. Yet the reality is that all too often, the decision to leave the company is actually a decision to leave an ineffective manager.

Research shows that many employees leave their jobs due to poor management. A survey by GoodHire found that 82% of workers would consider quitting their job because of a bad manager. And according to data from DDI's Frontline Leader Project, over 57% of employees leave their jobs specifically because of their bosses.

Small Giants are already keeping their people top of mind and caring about practices to help prevent this. However, as teams grow and scale, more deliberate and proactive actions, processes, and operations, must be taken to preserve the culture and the people. Understanding this underscores the importance of leadership development, especially in Small Giants companies.

Protecting Your People

So how do we prevent these people-problems in the first place? Through leadership development!

It's not enough to just have a clear purpose, aligned values, and good company culture -- the support provided to employees to equip them at all levels is what brings the magic to life.

Good employees are often promoted up because of their skills, talent, and embodiment of the purpose and values. To help them continue to be successful with new responsibilities of managing and supporting people, new people-focused training and skill development is needed. The "soft skills" become more critical and must be taught and built up or even expanded upon.

Developing managers and leaders has a trickle down effect because when they are great, their teams are great. Managers play a crucial role in shaping the work environment and influencing employee satisfaction. When managers know how and are equipped to empower individual employees to be more engaged, productive, and motivated, then employees are more likely to stay and perform at high levels because they trust in and are inspired by supportive managers. When this is done in alignment with the company's values and purpose, the people truly become the foundation of organizational success.

Investing in leadership development not only benefits individual leaders but also contributes to the overall health and success of the organization.

What's the ROI for Leadership Development?

Sustainable leadership development requires a deliberate and consistent investment in time and resources. Investing in leadership is not just the right thing, but it's good for business. Here are just a few ways that investments in leadership development pay off:

• Improved Retention: Companies that invest in leadership development have 34% higher retention rates than those that do not (Thomas Griffin). This shows us employees are more likely to stay with organizations that prioritize their development and offer pathways for growth.

• Boost in Productivity: Following leadership training, employees exhibited a 25% improvement in learning and a 20% enhancement in job performance. Research even showed a 25% improvement in organizational outcomes, and this number increased when both senior leaders and lower levels received training (ResearchGate). When employees are better equipped to motivate and guide their teams, this leads to increased efficiency, output, and engagement.

• Growth in Revenue: Companies that invest in employee development programs have a higher revenue per employee and a 24% higher profit margin than companies that do not (Kern and Partners). Dollars spent to cultivate effective leaders returns back to bottom line success.

• Preparedness for the Future: Effective leadership development ensures a robust pipeline of future leaders and in turn fosters long-term company-wide success. It's not only beneficial for current managers and leaders, but it demonstrates future growth opportunities for rising employees. In fact, organizations that actively develop their leaders are 4.2x more likely to have high-quality leaders capable of driving future success (DDI's Global Leadership Forecast).

• More Innovation: Strong leadership is associated with increased innovation. According to a McKinsey report, companies with well-developed leaders are 3.5x more likely to be innovative and agile in the face of change. This is imperative for a company's ability to solve current and future problems, which enables business success to sustain and grow.

The Small Giants Way

Whether you establish internal education and training programs or work with an aligned third-party development program, developing your leaders is one of the most impactful investments you can make. It not only enhances the personal and professional growth of your employees, but it also contributes to the betterment of your entire organization, especially when it's aligned in purpose, vision, and values.

If you're looking for support to develop your leaders in a people-focused, purpose-driven way, we're here to help!

• Applications are currently open for the Small Giants Leadership Academy, a 9-month cohort learning experience rooted in Small Giants principles that helps leaders grow their skills, perspectives, strategies, and confidence. Leaders embark on a path to becoming a certified Small Giants leader, all while learning alongside other like-hearted leaders and applying practical elements directly into their work.
• For 1-to-1 focused mentorship, the Small Giants Sounding Board connects mentees to tenured Small Giants leaders as mentors for guidance in a values-aligned way. Mentors serve as trusted accountability partners and advisors to have your back and help navigate your path of goals, challenges, and opportunities.

If you'd like to explore how we can help you develop your leaders, complement the training you already have established, or explore what your own personal development could be, let us know! We're here to help you and your company thrive now and endure long into the future.

Follow your purpose,

The Small Giants Community Team

Plan ahead to join us on August 21st for a free virtual event to share and solve problems alongside other like-hearted leaders. Bring a challenge or opportunity and let's dive in! Register here to be a part of this Community experience.

Join Small Giants Community co-founder Paul Spiegelman as he goes behind the scenes with purpose-driven business leaders to learn about what shaped them in business and in life. On the Growing with Purpose podcast, listen to the inspiring stories of Small Giants leaders like Tom Walter , Sabrina White , Chelle Neff , Mikel Berger , Ron Alvesteffer , Dawn Abbott , and many more!