Leadership development industry statistics show us that this is a big industry.
However, they also show us that there is plenty of room for improvement!
If you continue reading this article, you can find out how companies are implementing leadership development, how much money they invest in it, and how good leaders and companies are in providing managers with leadership development programs.
So let’s dive in!
Leadership Development Industry Statistics (Editor’s Pick)
- $357 billion are invested in leadership development globally in 2020.
- The industry is expected to grow by $26.7 billion between 2020 and 2024.
- 34% want to develop coaching skills in frontline managers.
9 Leadership Development Industry Statistics
1. Globally, $366 billion are spent on leadership development in 2018.
On one hand, $366 billion are spent on leadership around the world in 2018, according to data from Training Industry. Moreover, in 2019, that number increased to $370 billion. Of those $370 billion, $169 billion came from the US alone, which is almost half.
Source: Training Industry
2. In 2020, $357 billion were invested in leadership development around the world.
In the year the COVID-19 pandemic hit the world, $357 billion were invested in leadership development globally. This is a slight decrease compared to the year before when it was $370 billion. It is estimated that the number would have been even higher than in 2019 if the businesses were not affected by the pandemic.
Source: Training Industry
3. Over nine in 10 organizations plan to invest the same amount of money in leadership development or increase it.
Almost 95% of organizations had a plan to increase their investment in leadership development or invest the same amount of money in 2018 as before. On the other hand, only around 6% of them planned to decrease their investments in leadership development.
Source: Chief Learning Officer Business Intelligence Board
4. Around 8% of organizations spend over $10,000 on leadership development per person annually.
According to Chief Learning Officer Business Intelligence Board, only 8% of companies invest over $10, 000 dollars on leadership per employee in a year. Furthermore, 6% spend between $7,000 and $10,000. Finally, the majority of the organizations (68%) spend less than $4,000 per year per employee on leadership development. This is according to a survey of 28,000 business leaders in 2018.
Source: Chief Learning Officer Business Intelligence Board
5. 29% of companies use leadership development to develop strategic planning skills in executives.
Just under one in three companies (29%) say they use leadership development programs to develop strategic planning skills in executives. Moreover, 28% named business acumen as the top skill they are trying to develop. Furthermore, 25% want emotional intelligence development and leading innovation skill development. Finally, 24% named coaching as the skill they want executives to develop through leadership development programs.
Source: Chief Learning Officer Business Intelligence Board
6. For frontline managers, 34% of organizations want to develop coaching skills.
According to the Chief Learning Officer Business Intelligence Board’s survey of 28,000 business leaders, 35% of organizations want frontline managers to develop coaching skills through leadership development programs. Moreover, 31% name communication as the skill they want frontline managers to develop. Also, 27% mention employee engagement, 21% business acumen, and 20% critical thinking.
Source: Chief Learning Officer Business Intelligence Board
7. In 2020, companies spent an average of $176 per employee on training and development.
Compared to 2019 when companies spent $147 on average, they spent more in 2020 ($176). However, it is still less than they spent in 2018 when companies spent $194 on average per employee.
Source: Training Industry
8. There was a 19% increase in virtual instruction-led training during the pandemic.
While there was a 19% increase in organizations using virtual instruction-led training during the pandemic, there was a 10% decrease in them using live instruction-led training. Finally, there was a 7% increase in blending training and learning methods, according to the leadership training statistics.
Source: Training Industry
9. The leadership training market is expected to grow by $26.7 billion between 2020 and 2024.
According to Technavio, the leadership development industry is expected to grow by $26.7 billion between 2020 and 2024. This means that the already high-value industry will become even bigger.
Source: Technavio
Final Verdict
In conclusion, leadership development industry statistics tell us that the development and learning industry is a high-growing one. Also, it tells us how much organizations invest in it and which skills they want employees to develop through training. However, leadership statistics and leadership development statistics can tell us even more about this topic.
