Securing a team of talented individuals who are not only equipped with the necessary skills but also motivated to achieve a clear vision is essential for effective leadership.
The ability of an organisation to attract, develop, and retain exceptional talent can be the determining factor between flourishing and floundering. Research indicates that employee engagement, defined as bringing one's best and full self to work, is not merely a 'nice-to-have' but a critical business imperative. It is directly linked not only to retention levels but also to various performance outcomes, including productivity, profitability, and customer satisfaction.
Regrettably, national research reveals that a significant 56% of new employees become disengaged within just six months on the job. This alarming trend suggests that organisations, lacking the appropriate culture, risk turning off bright and lively new employees.
So, what does it take for leaders to effectively retain talent?
Employees respond positively to increased responsibility and authority in their daily tasks, often preferring autonomy. In other words, people generally thrive when empowered to make choices and decisions for themselves.
Sandwiched between senior management and the broader staff, 'middle leaders' play a pivotal role in the success of any organization. That’s why we created LEADlight. Tailored for middle leaders across businesses of any sector, size, or type, from family firms to scaling small and mid-sized companies and not-for-profits, LEADlight aims to help these middle leaders to develop their skills, enhance their awareness, improve performance, and achieve better results from their teams. Fully engaged middle leaders are well-positioned to inspire others, creating a positive ripple effect throughout the organisation.
There is a compelling business case for investing in organisational development. Statistics indicate that the cost of recruitment amounts to £36,000, encompassing advertising, fees, and the lower productivity during the first six months as individuals get up to speed. Consider a 30-person business with a 20% turnover of staff — six people per year, costing £216,000. Now, envision the impact of introducing greater engagement and development opportunities, aiming to halve churn to 10%. This strategic move would save over £100k, contributing directly to the bottom line.
As business leaders contemplate their plans for 2024, it is crucial for them to prioritize investing in their own leadership development. Additionally, fostering a company-wide culture that encourages personal development should be a key focus.
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