FEATURE
THE VALUE OF LEADERSHIP
DEVELOPMENT AND
WHAT COMPANIES ARE
SPENDING ON TRAINING
AND DEVELOPMENT
Mark Huselid found that companies known
for having higher quality leaders and a
better leadership bench strength earned
higher P/E multiples on the stock market,
compared to their peers. This is hardly surprising, given the fact that quality of leadership has a direct impact on employee
productivity and retention, revenue
growth, customer service and retention.
Here are a few key stats that map the terrain:
14 | www.hria.ca
57%
higher net
sales per
worker
37%
higher gross
profits per
worker
20%
higher ratio
in marketto-book
values
An American Society of Training &
Development (ASTD) study on the value
of training, found that companies with
well-designed training programs had
on average
"Companies with above-average leadership bench strength enjoy above-average
36-month revenue growth relative to
their industry peer group." (Corporate
Leadership Council)
http://www.hria.ca
Table of Contents for the Digital Edition of HUMAN Capital - Fall 2016