How Much Should You Budget for Leadership Development in 2025?

Picture this: You’re driving a sports car up a steep hill, engine revving, wheels gripping — but the driver’s half-asleep and doesn’t know the route. That’s what business growth without leadership development looks like. You can pour money into strategy, marketing, and even AI, but if your leaders aren’t equipped to steer, you’re just burning fuel.

Leadership training isn't fluff, and in 2025, it's more necessary than ever. Here at The Metiss Group, we have 30 years of experience developing leaders at small- to mid-sized companies.

In this article, we’ll discuss:

1. Why Leadership Development Matters More in 2025
2. Before Investing in Leadership Development, Decide What You Want to Achieve First
3. How Much Should You Budget for Leadership Development in 2025?
4. What Are You Really Paying For in Leadership Training?
5. Is the ROI of Leadership Development Worth It?

Why Leadership Training Matters More in 2025

From trade wars to tariffs and more, the first quarter of 2025 has made people feel uncertain about the economy. CEOs across the board are pulling back on hiring, tightening spending, and playing defense. According to the Vistage CEO Confidence Index, more than two-thirds of business leaders expect negative financial impacts due to global tariffs and economic slowdowns. That’s a lot of crossed fingers and clutched wallets.

So if you can’t grow your team headcount, you’ve got one clear path to performance: get more out of the people you already have. Especially your leaders.

This isn’t about squeezing them dry; it’s about sharpening the tools they use to cut through chaos. Training, coaching, and consistent feedback give your leaders the edge they need to carry more and carry it better.

Before Investing in Leadership Training, Decide What You Want to Achieve First

Budgeting for leadership development starts with looking in the mirror. Ask yourself: Where are we going in 2025?

If you're aiming for growth, then leadership development becomes your pace car. You don’t want the business racing ahead while your leaders are stuck in second gear. When that happens, decision-making slows, execution buckles, and culture takes a nosedive.

But maybe you’re not in growth mode. Maybe you’re trying to turn things around, and that’s actually more reason to prioritize leadership. You can’t afford not to. Investing in your leaders may be the single smartest move you can make to dig out and reset.

The worst time to invest in leadership development is when you simply can’t afford it. If you’re just going to see it as an expense instead of an investment, then you’ll get antsy, expect quick wins, and probably pull the plug before the results show up. And then? You’ll have wasted money and missed out on growth.

Leadership development is a long game. You build skills, reinforce them over time, and embed new behaviors into your culture. That takes consistency and commitment, not just a few workshops and a pat on the back.

As our friend and longtime CEO Dave Zerfoss says, “If you don’t have a line item in your budget for leadership training, you’re not taking leadership development seriously.”

So How Much Should You Budget for Leadership Training in 2025?

Let's talk numbers. There’s no universal magic number, but here’s what leadership development costs typically look like:

Industry norms: Many companies spend between 1% and 5% of their annual revenue on leadership development. For a mid-sized company with $10 million in revenue, that means anywhere from $100,000 to $500,000. 

Per person: Many businesses budget between $1,000 and $4,000 per leader, per year. Some organizations go even higher — especially when they're developing executive or high-potential talent — with figures that push past $10,000 annually.

What we see at The Metiss Group: Our clients typically allocate between $3,000 and $40,000 per leader per year for leadership development, depending on the size of their leadership team and their goals.

It's not about keeping up with the Joneses. It's about understanding what you’re solving. Find a leadership development program that fits your needs and budget.

What Are You Really Paying For in Leadership Training?

Leadership development isn’t a shiny keynote or a motivational retreat. The real value is in the repetition, the reflection, and the behavior change. When you budget for leadership development, here’s what you’re likely paying for:

• Coaching: One-on-one or team coaching that digs into real-time challenges and helps leaders think through decisions better.
• Training programs: Structured workshops focused on core skills — things like communication, accountability, delegation, or leading through change.
• Assessment tools: Insights into personality, behavior, and motivation that help leaders grow with self-awareness, not just ambition.
• Feedback loops: Regular check-ins, 360 reviews, or peer coaching to reinforce what’s being taught.
  
  

Each of these is a building block. Together, they create leaders who can think critically, lead confidently, and adapt on the fly.

Is the ROI of Leadership Development Worth It?

Short answer: yes. But only if you treat it right.

Research shows every dollar invested in leadership development returns up to $7 in value. That comes from better decision-making, higher employee engagement, lower turnover, and faster execution.

It’s like upgrading your internal software: smoother operations, fewer crashes, more output. And unlike tech upgrades, leadership development doesn’t go obsolete every six months. It compounds.

But the ROI won’t show up in a quarter. It shows up over time in people who stick around, take initiative, and drive results that outlast any single strategy shift.

Make the Call for Leadership Training in 2025

The best time to start investing in your leaders was yesterday. The second best? Before your team hits its next wall.

So how much should you budget? Enough to show your leaders you’re serious. Enough to build something that sticks. Whether you’re on a high-growth track or just trying to keep the ship afloat, leadership development can be the difference between running a company and leading one.

If you’re not sure where to start, we’re here to help. At The Metiss Group, we work with companies to build leadership development plans that actually work — without fluff, without wasted time, and without the sticker shock.

Now that you understand how much to budget for leadership development in 2025, the next step is to compare two popular leadership development programs. One looks at building essential leadership skills, and the other builds leadership development around your organization’s specific strategic goals. This will help you decide what leadership training to invest in 2025.