Key ways for leaders to invest in their companies to ensure long-term sustainability have never been so sought after. The cost linked with recruitment have been targeted by many.

This new-found excitement for reducing overall costs to accelerate company effectiveness has meant a long, hard look at the expense connected with the recruitment of key personnel. And it should come as little surprise that interest in an effective and bespoke leadership development programme has increased rapidly since companies have turned on to internal investment once again.

Here are the three ways that a leadership development programme can reduce the costs of recruitment:

1. Develop leadership to recruit within – Even though companies will search high and low to identify the right executive to fill a top level position, there is always an underlying want to be able to promote within. And, employees who have been working at a company for a period of time will understand the culture of the organisation and will require little internal training to get up to speed. This means a vast reduction in costs, and not just in internal training.
Costs associated with advertising the role, as well as time taken to interview and select all contribute to a costly process. A leadership development programme that targets managers in the ‘developing’ stage of their career could save organisations time and money in the long-term. This also means that a company can recruit at the lower end of the company hierarchy, rather than at the expensive end.

2. Motivated staff remain loyal and committed – Any employee who feels that their employer is acting in a parental way, investing in their future by training and developing their skills, will be more motivated and committed. Retaining staff is key to keeping costs of recruitment low, and leadership development has been identified as a crucial way of keeping employees engaged and loyal to their employer.

3. No need to outsource – Many recruitment firms and headhunting agencies have proven their ability to source the right person for the right job, but it comes at a cost. For companies looking to avoid the hefty and luxurious costs of recruitment consultants, developing the talent that already exists within the organisation is the ideal option. This is a simple case of investing in those that have already proven their worth to the business, rather than paying for a search and selection team to identify someone unknown to the business.

It is important to note, that none of these recruitment savings would be possible without adequate investments into leadership development. Developing employees, managers and leaders is the only prudent and long-term option for businesses looking to break free from the costly recruitment programme. Read more about your bespoke leadership development programme here

About the Author

James Pentreath is the founder of Leadership Consulting Partners, and has an aim to build up a global community of strong leaders who are role models for the future generations. Within his leadership development programme James is reaching out to organisations looking to bolster their understanding of how effective leadership can realign it with corporate objectives, and also facilitators keen to offer their clients a new programme of leadership development.