Not only this, a recent survey highlighted that learning leadership skills is the most effective development activity for employees to undertake.
The Australian Human Resource Institute (AHRI) polled 516 HR professionals and 17 per cent listed it as the top contributor to workplace improvement, which tied in top spot with the induction of new staff.
However, the results showed that despite the positive outcomes of leadership training, just under 70 per cent of respondents claimed less than five per cent of organisational revenue is spent on upskilling their staff in this way.
In fact, only one in ten said training spend comprised more than ten per cent of their revenues.
Chairman of AHRI Peter Wilson urged companies to consider how influential effective leadership training can be.
“The connection between investment in learning and development and the wider business strategy should always be central, not discretionary,” he stated.
The figures showed 84 per cent of HR professionals feel training activities are linked to overall commercial goals at their organisation, although only 13 per cent of respondents think the connection is strong.
Furthermore, 16 per cent said the link between their company’s training initiatives and business goals is weak or non-existent.
“The sizable minority who report little or no link is a concern,” Mr Wilson admitted.
The data may encourage businesses to seek external leadership courses in order to better align their staff development approach to operational strategies.
According to the survey, there are a variety of reasons why learning and development activities are conducted.
Compliance requirements were listed by 15 per cent of respondents, while a further 15 per cent claimed their training is initiated by employees.