Leadership Training Is Expensive—But Is It Actually Working?

Every year, companies pour billions into leadership development programs, to cultivate the next generation of effective leaders. 

The Asia Pacific corporate training market held 23% of the global revenue, with a market size of USD 35.7 billion in 2024, and is projected to grow at a compound annual growth rate of 9.3% through 2034.

Yet, despite these substantial investments, the return on investment (ROI) remains a pressing concern.

Gartner's research further underscores this disconnect: while 76% of organizations have updated their leadership programs, only 36% of HR leaders believe these programs effectively prepare leaders for future challenges. 

The Effectiveness Gap

In a global survey by McKinsey & Company, only 11% of organizations reported that their leadership development programs yielded consistently strong results. 

In Asia, where leadership capability is seen as critical to regional competitiveness, the cracks are also showing. According to Deloitte’s Southeast Asia Human Capital Trends, more than 60% of organizations reported a shortage of future-ready leaders—despite significant investments in development programs.

So what’s going wrong?

The Limits of Traditional Leadership Training

One reason for this gap is the structure of leadership training itself. These programs are often one-off events, removed from the day-to-day realities of work. Even when designed with the best intentions, they can feel like simulations—valuable in theory, but disconnected from the pressures and ambiguities that leaders face on the ground.

Training often fails because it doesn’t stick.

Why Mentorship Works

Leadership training offers essential knowledge, frameworks, and tools. It can spark new ways of thinking, develop critical capabilities, and signal an organization’s commitment to growth. But without consistent reinforcement and real-world application, the training can lose momentum once participants return to the day-to-day demands of work.

That’s where mentorship comes in—not as a replacement, but as an extension.

Mentorship supports training by embedding learning into the flow of work. It provides a space for reflection, contextual problem-solving, and behavioral reinforcement. Where training builds foundational knowledge, mentorship activates it—helping leaders apply what they’ve learned, adapt to changing situations, and stay accountable to their growth.

Unlike traditional training, mentorship is continuous. It pairs emerging leaders with seasoned professionals who can provide ongoing guidance, real-time feedback, and contextual insights. Rather than pulling leaders away from their work, mentorship embeds development into it.

Real-Time Learning, Real-World Results

The strength of mentorship lies in its ability to translate knowledge into behavior. While classroom training may teach communication or decision-making frameworks, mentorship allows these skills to be practiced in real-time. It fosters psychological safety, encourages reflection, and reinforces continuous improvement—something formal courses struggle to replicate.

For HR leaders struggling with low engagement, poor knowledge retention, or a lack of succession planning, mentorship provides a solution that is both scalable and personal. And when supported by the right technology—tracking relationships, meeting outcomes, and growth milestones—it becomes even more powerful.

Conclusion: Rethinking the ROI of Leadership Development

As the pace of change accelerates, companies can’t treat  leadership development as mere  checkboxes. The stakes are higher—and so should be the standards.

Structured mentorship isn’t just an HR initiative. It’s a strategic imperative. One that weaves leadership development into the flow of work and builds a more resilient, adaptive workforce.

The question isn’t whether we should keep investing in leadership development. It’s whether we’re investing in the right kind.

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