Small and mid-size businesses can benefit greatly by developing strategized processes for talent management in their companies. To achieve this goal, the leaders of such businesses must invest in talent development initiatives.
Small and medium-scale company leaders typically don’t initiate formal processes for talent management in their respective organizations. In the post-COVID19 era, these leaders have valid reasons not to invest in top-quality talent development initiatives. Some of them include –
- Lack of resources
- Lack of time
- Inability to find reliable and cost-effective leadership programs
These reasons are valid. But, not investing in these programs and initiatives harms small and mid-scale businesses the most.
- Large companies constantly invest in top-grade talent development initiatives. As a result, the managers and leaders of these organizations are always on the cutting edge of new business ideas. Every company leader, from the CEO down, improves their ability to manage and optimize their workforce.
- Leaders of small and mid-size businesses, on the other hand, miss out on these perks. Their companies are already thinly managed. The lack of talent development training makes these leaders incapable of overcoming the challenges of the ever-changing economy.
Small and mid-size businesses stand to benefit enormously from talent development initiatives. Not investing in leadership development programs and initiatives can cost them dearly. According to a recent study on the correlation between talent planning and company performance by Mckinsey –
- 99% of companies with effective talent management programs outperform their competitors.
- Only 56% of companies with no talent management programs report outperforming their competitors.
- There are multiple positive effects of company leaders investing in talent development initiatives. These leaders are able to attract and retain more talent, maintain better total returns to shareholders (TRS) rates, and more.
If you’re an entrepreneur or leading a small/mid-size business, you may think these trends won’t apply to your organization. You’re mistaken. There are many fit-for-purpose leadership development programs that can transform your approach to management. Here are five ways talent development initiatives can help leaders of small and mid-size businesses –
- Address Immediate Business Problems: Investing in talent development initiatives is always viewed as an investment for the future. But, many such initiatives help leaders of small and mid-size businesses fix urgent business problems. For example, many companies are facing staff shortages due to the COVID19 pandemic. A high-quality talent development program will teach business leaders how to upskill subordinate managers. These subordinates can then take charge of responsibilities, projects, etc., from their bosses, thereby addressing the staff-shortage issue.
- Help the Business Scale: Scaling a business is the process of increasing its revenue without increasing business costs. Executives and business leaders struggling to exceed their revenue goals can benefit from leadership-development investments. These courses, programs, etc., are taught by top industry experts. These experts know how to create management systems in which leaders spend less time supervising employees and more time leading. Applying these management tricks will drive business growth.
- Create Frameworks for Success: The small and mid-scale market is full of founder-led companies. These companies all employ similar tactics. To encourage growth, leaders of these companies must start developing their future leaders. Or else, the successful frameworks of success that already exist in these organizations may get diluted with time.
Leaders who know how to connect with people and boost their teams’ strengths will always outperform those who don’t. Learning advanced talent development strategies by investing in talent development initiatives can help leaders of small and mid-size businesses flourish.