Exit to Engagement: Leader Development's Impact on Retention
Overview of the Program
The application-based Inside Out Leader Development (IOLD) program, created by Henley Leadership Group (HLG), was implemented for a large, well-known tech company based in Seattle. 2023-2024 was the fourth year the program was run for this company, involving 100 participants. The program consisted of two full-day in-person events, one half-day in-person meeting with cohorts, and ongoing virtual coaching sessions. Each participant received 8 hours of 1:1 coaching from an HLG coach, fostering continuous personal and professional growth throughout the nine-month program.
Challenges
Through authentic engagement with coaches and facilitators during the program, it was discovered that four participants were contemplating leaving the company. This insight, which surfaced unexpectedly, highlighted a significant issue with employee engagement and retention that had not been previously explicitly identified.
Solutions and Implementation
The IOLD leadership program focused on several key themes critical to modern leadership based on participants’ applications and current struggles in their organization:
Strategic Planning: Equipping leaders with the skills to navigate complex business landscapes.
Imposter Syndrome: Addressing and overcoming feelings of inadequacy.
Influence Without Authority: Teaching participants how to lead and influence regardless of formal power.
Diverse Perspectives and Empathy: Encouraging a deep understanding of diverse viewpoints and building empathetic leadership.
Listening and Decision-Making: Enhancing critical listening skills and making informed decisions.
The program also provided tools and frameworks, such as Stress-Based Reactions and the Johari Window, to help participants develop self-awareness and understand the impact of their actions on others. The program aimed to:
Create an environment for self-empowerment that enabled participants to own their line of business
Encourage building strong and trusting relationships among team members within the organization that support the larger culture-building efforts.
Leave each participant with a productive, relevant set of leadership tools grounded in inquiry, self-reflection, and accountability for one’s impact and outcomes.
Contribute to the greater understanding and learning journey of what it means to create a sense of belonging.
Results and Impact
The program's structured approach to leadership development significantly boosted participants' confidence and engagement in their jobs and lives. The four participants initially planning to leave felt rejuvenated and committed to staying, attributing their change of heart to the skills and perspectives gained during the nine-month program. This unexpected retention provided substantial financial savings for the company, with potential costs of turnover being high in the tech industry.
Financial Impact
In the tech industry, the cost of turnover can range from 50% to 200% of an employee's annual salary. For this company, with an average salary of $200,000, retaining these four employees potentially saved up to $1.6 million in hiring and onboarding costs (CareerBuilder's Employer Resource Center) (Built In) (Lattice) (Betts Recruiting).
Conclusion
The Inside Out Leader Development program proved valuable, enhancing leadership qualities, increasing retention, and fostering a more cohesive workplace culture. It demonstrates the significant benefits of targeted leadership development programs in uncovering and addressing hidden challenges, ultimately leading to a more engaged and committed workforce.
For companies seeking to enhance their leadership capabilities and improve employee retention, consider a specialized offering like Henley Leadership Group's Inside Out Leader Development program.
Contact us to learn more and explore how our tailored programs can help your organization thrive.