Developing the next generation of leadership is how businesses can stay ahead of the curve, according to a finding by a recent survey. The Top Companies for Leaders Study sought to determine how actively CEOs get involved in bringing along the next generation of leaders. It found 85% of the best 20 companies were holding their leaders accountable for developing their direct reports, compared with less than half (46% ) of other companies. Respondents said education, assignment-based development and mentoring were all good, but would work only if senior leadership was accountable. In fact, more than half of the top 20 companies earmarked between 6% and 15% of incentive pay toward leadership development, and about a third allocated 16% or more.
The study, sponsored by human resources outsourcer and consultant Hewitt Associates and the Human Resource Planning Society, was based on 373 U.S. organizations with average revenue of approximately $8.3 billion and average employee size of nearly 30,000. Organizations that offer quality leadership development programs increase their chances for long-term success, says Walt Cleaver of the Human Resource Planning Society.