Companies Avoid Development Investment

Carolyn Childers shares insights about company sponsorship of professional development programs and its significance as a retention signal. Her perspective comes from running Chief, a professional network for senior executive women.

Key Points:

• Company Sponsorship as a Retention Signal:

  • When companies say no to sponsoring professional development, it sends a clear negative signal to employees
  • Rejection of sponsorship indicates to employees that "you're not investing in me, you don't value me"
  • This often becomes the trigger for employees to start looking for other opportunities

• Employee Response to Lack of Sponsorship:

  • Employees will often self-sponsor their professional development
  • They're more likely to leave and find new opportunities elsewhere
  • Contrary to some company fears, sponsoring networking opportunities doesn't lead to employee departures

• Positive Impact of Sponsorship:

  • When companies sponsor development, employees are more likely to:
    • Stay in their current role
    • Continue growing as a leader within the company
    • Feel valued by their organization

• Business Case for Sponsorship:

  • Professional development sponsorship is often an "easy sell" to companies
  • Compared to traditional executive coaching ($30,000 for 6 months), networking programs are cost-effective
  • It's a practical way for companies to invest in top talent

This perspective challenges the common corporate fear that investing in external networking will lead to employee departures, suggesting instead that it strengthens retention when companies demonstrate investment in their people.