Why is Veritas L&D program for management important?

When you develop leaders within your own organization, you can have more mobility than if you rely on outside hires. Plus, employees who work at a company with internal mobility stay nearly twice as long as those who work at low internal mobility companies.

Investing in upskilling and leadership development is one of the best ways to improve your existing assets and grow your business.

Management skills don’t appear on their own. These crucial leadership qualities need to be nurtured in employees who have potential.

And when you develop existing employees to their highest potential instead of outside hires, they already have inner knowledge of your organization. They already understand the organization they will soon lead.

Implementing a management development program has several benefits for an organization. Here are four reasons your company should invest in creating a management development program:

1. Increase your human capital

Human capital is the sum of the knowledge, intelligence, and experiences of your workforce. One of the best ways to increase human capital is by educating and training your employees.

A management development program is a great way to close the skills gap that is stopping your best employees from achieving their full potential.

2. Create a culture of innovation

Innovation can give your company a competitive advantage. This is especially true in a saturated market.

A culture of innovation can make it easier to find creative solutions to challenging problems.

Because of this, innovation can:

• Help your company cut costs
• Improve productivity and efficiency
• Develop new features for products and services that competitors don’t have

The more an employee has lived through a variety of experiences, the more they’ll be able to innovate.

Management development is a great way to provide them with some of these experiences. It opens up the door for them to explore new perspectives.

3. Increase employee retention

Employee turnover is expensive for companies. Work Institute states that employee turnover costs about 30% of an employee’s annual salary.

Since the median wage of an employee in the US is $48,672, the median cost of employee turnover is about $15,000.

Work Institute also states that 37.9% of employees leave their job after less than a year.

But it’s possible to increase employee retention. As 2021 Workplace Learning Report stated, employees stay longer at companies that hire from within.

However, to hire from within, you need to develop your managers and leaders first. It’s an investment, but this should pay off in the long run when your best talent sticks around.

4. Improve succession planning

The current managers in your organization won’t be there forever. Whether they move up in the ranks, retire, or decide to work elsewhere, their positions will need to be filled eventually.

When you have a management development program already in place, it’s easier to plan for the succession of these positions. You can spot trainees with the most potential and prepare them to take on more responsibility before the time comes.