When businesses invest in coaching programs for employees, the average return on investment (ROI) is $7 for every $1 spent on leadership development, according to a Sept. 21 report from BetterManager, a leadership development platform, and research firm The Fossicker Group.

The ROI appears to stem from increased revenue and sales as a result of leadership development participation, as well as cost savings through higher employee retention and lower recruiting costs.

“Countless qualitative studies have shown that the benefits of leadership development ripple out across the entire organization,” John Topping, president and COO of BetterManager, said in a statement.

“People leaders are increasingly being asked to make the business case for programs they implement,” Topping said. “This type of tangible return speaks in real dollars and cents and shows that leadership development is a profit multiplier.”

In a survey of 752 people responsible for leadership development at a range of companies in the U.S., Canada and the U.K., 84% said their company still prioritizes investment in leadership development despite tough market conditions. In addition, 99% said they’d maintain or increase spending on leadership development during the next 12 months.

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