PHILADELPHIA, July 29, 2013 – Spending on leadership development programs is expected to rise over the next 12 months, according to a global survey of senior human resources executives at more than 600 organizations. The survey was part of a study conducted by The Conference Board and Right Management, the talent and career management experts within ManpowerGroup.
While spending on key talent initiatives will likely remain the same in nearly half of organizations in North America and Europe, it will increase in about 36% of the companies in those regions. By comparison, such investment is likely to increase in 46% of companies in Asia and stay the same in another 42%. Only 10% of respondents worldwide indicated that spending on leadership programs may decrease.
Future investment in leadership development by region
North America Europe Asia Global
Average
Increase 37% 34% 46% 39%
Stay the same 49% 48% 42% 47%
Decrease 11% 14% 8% 10%
Not sure 4% 5% 4% 4%
“On balance, the findings suggest that investment in leadership programs is likely to rise somewhat,” said Ric Roi, Head of the Global Center of Excellence for Talent Management at Right Management. “This will mean an increased investment in talent initiatives at a time when so many organizations face a challenge maintaining an ample pipeline of ‘ready now’ candidates to move up into positions of greater responsibility and scope. And no doubt it’s due to this pressing concern that spending will not only continue, but rise.”
The study also probed where such investment would be made.
Where is your organization allocating greater resources in the next 12 months?
Executive coaching or mentoring 48%
Action learning initiatives (business challenges, simulation) 41%
Focused skill development 33%
Executive assessments 31%
International assignments 28%
Executive education/academic university programs 28%
Rotational programs 22%
Social learning 5%
“Not surprisingly, the rising investment spans the full range of development initiatives, from coaching to social learning,” said Roi. “While coaching is at the core of most leadership development initiatives, an interesting finding is the relative importance attached to so-called action learning initiatives, which appear to be gaining ground.”
According to Amy Abel, Director, Human Capital Research for The Conference Board, the increased spending may also reflect an understanding that the pace of future work will continue to accelerate. “They realize that talent is the single most important factor in driving competitive advantage, and that the skills and capabilities needed tomorrow may not exist today. Yet the survey reveals that in 40% of companies leaders are perceived to be either marginally prepared or not prepared to meet the business challenges that lie ahead.”
The findings are drawn from the 2012 survey “Strategic Leadership Development: Global Trends and Approaches.” Participating were 654 respondents from 14 industries.
About Right Management - Right Management is the global leader in talent and career management workforce solutions. As the workforce consulting experts within ManpowerGroup, the firm designs and delivers solutions to align talent strategy with business strategy. Expertise spans Talent Assessment, Leader Development, Organizational Effectiveness, Employee Engagement, and Workforce Transition and Outplacement. With offices in over 50 countries, Right Management partners with companies of all sizes – including more than 80% of the Fortune 500 – to help grow and engage their talent, increase productivity and optimize business performance.
About The Conference Board - Founded in 1916, The Conference Board is an objective, independent source of economic and business knowledge with one agenda: to help our member companies understand and deal with the most critical issues of our time. We conduct research and convene business leaders in forums large and small, public and private. The insights captured through our extensive network feed directly back into our research and meeting agendas, ensuring that our activities remain sharply focused on the key issues of the day. The Conference Board works within and across four main subject areas – Corporate Leadership; Economies, Markets & Value Creation; High-Performing Organizations; and Human Capital – to create a unique, enterprise-wide perspective that helps business leaders respond today, anticipate tomorrow, and make the right strategic decisions every day.
