Leadership Facts & Statistics

27 Leadership Facts & Statistics

An effective leader inspires and motivates people and plays a vital role in the success or failure of an organization. Effective leadership focuses on common objectives for a company's success rather than personal agendas. Where there is a lack of leadership, the teams suffer. Therefore organizations must practice leadership development to increase the effectiveness of leadership. The leadership facts below talk about the makeup of leadership, what it means to exercise leadership, develop an effective leadership style, and what great leaders can achieve. 

General Leadership Facts In The Workplace

The changing demographics of leadership in the workplace

#1 - About 10 000 baby boomers (people born around world war 2 or 1960) retire every day1

Which is about 70,000 thousand per week and almost 4 million per year. Boomers are above 60 years, and by 2030 all boomers will be at least 65 years of age, so their retirement rate perhaps comes as no surprise. As the boomers move out of the workplace, companies often need to replace senior management positions with future leaders since boomers retiring often hold roles with leadership responsibility.

#2 - The percentage of millennials in the workforce in 2020 has increased to 40%1

Millennials, defined as anyone born between 1981 and 1996, are becoming more influential in the workplace. As the boomers retire, their presence across more senior and influential leadership positions will increase. Employers in organizations, companies, and the entire workforce are looking to the millennials and the next generation of business leaders with a good skill set and ability to fill the void left by the boomers. 

#3 - In 2017, 75% of millennials were employed, with 65% of them holding full-time roles9

This is higher than the 59% of non-millennials who have jobs, and 48% hold full-time roles. This difference is not surprising because millennials, unlike non-millennials, are more likely to be in their prime working years (i.e., 25-54). At 25, most people must have completed their formal education or any program of their choice and are looking for jobs.

#4 - 67% of those Millennials are seeking better or new jobs1

In the workforce today, diversity and inclusion are important to employees. Millennials are often after leadership development, an opportunity to learn, grow and develop effective communication skills. The facts about leadership show that job seekers look at more than compensation. They shop for jobs that best align with their life goals and needs.

#5 -91% out of those who stay make their decision in not less than 3 years1

Individual wants, benefits, patience, and tolerance hugely influence this percentage. Some employees might want to give the organization or company a chance to improve on employee treatment.

#6 - 84% of companies out there believe there will be a drop in the number of available leaders in the next five years 1

With baby boomers retiring, millennials moving from one job to another, and organizations' failure to organize leadership development programs that will equip employees with leadership skills and close leadership gaps, leaders will become scarce in the next five years.

Developing leadership skills

Leadership facts
Photo by Miguel Á. Padriñán from Pexels

#7 - 83% out of the said organizations believe that it is important to improve the leadership skills among all levels in an organization 1

This percentage is one way to ensure employees acquire the leadership skills they need to be successful leaders whenever a leadership role presents itself. It will increase the number of available leaders in the global workplace and prevent the drop in the next five years.

Related: Developing Leadership Skills For Change

#8 - It is surprising, however, that only 5% of that 83% have started or applied a strategy to improve leadership skills in their organization 1

Many organizations prefer employing experienced and proven successful leaders rather than risking the mantle of leadership on a newbie, plus the uncertainty of workers staying around when they need them after spending a fortune in training them. One of the surprising facts about leadership is organizations reluctant to develop their leaders, with only 5% willing.

#9 - According to 25% of organizations, less than 10% of important leadership roles have a clear and ready successor1

Business leadership statistics show that formal succession planning needs to be emphasized by the CEOs, especially in small organizations where it is non-existent. They also need to pay close attention to successor candidates' backgrounds and abilities because those factors really matter. Equipping people with the leadership qualities and the confidence to take a management position defines the difference between competitive advantage and otherwise. 

#10 - Looking at the priority of companies, 58% of them said they want to close the leadership gap in their organization 1

The leading cause of the leadership gap is generational shifts in the workforce. Many organizations are working towards training their employees to have leadership competencies like problem-solving, strategic thinking, and emotional intelligence. 

#11 - 43% of organizations prioritize closing the gap in leadership across all levels1

How are leaders doing?

#12 - 18% of organizations classify their leaders as "very effective" during meetings1

This percentage is low, and this is because face-to-face meetings and phone meetings are on the decline. A good leader must use communication skills to ensure direct reports know where the organization is heading and their role within it. With many meetings missing the mark in our ever-changing world, the best leaders must also ensure staff members can work remotely and ensure they communicate decision-making effectively regardless of environment or external factors. 

#13 - Only 19% of organizations agree that their leaders are good at developing leadership skills in others1

Leadership effectiveness is often defined as having the ability to bring others up and skill them to support their vision while ensuring work performance. Vision leadership sets apart those who engage and bring people with them.

Developing leadership skills is very important in the work environment,  and only a few leaders help develop others to take over from them. Internal political structures can prevent today's leaders from passing skills on to tomorrow's leaders. This is part of why a huge percentage of organizations experience a leadership gap. 

Training workers to have the necessary skills for leadership roles is important for all organizations to develop leaders.

#14 - 71% of organizations think their leaders do not have what it takes to lead the company into an organization1

Every organization requires effective leaders and supportive followers. In organizations with complaints about the leader, their communication lags or lacks between the leaders and the other team members, or no appreciation of the followers. Others point out that the multicultural aspects, ethical considerations, and self-awareness prevent leaders from connecting effectively to progress an organization's aims. 

Leadership facts about what employees think of their leaders 

#15 - 81 percent of employees who responded to the 2019 human capital survey say that to be a successful leader in the 21st century, a leader must be able to lead them through "more complexity and ambiguity." 2

Ambiguity and complexity are the norms in any complex organization, but it is still possible to achieve clarity. To lead people through ambiguity, a leader has to understand the challenges of ambiguity and manage their own ambiguity before inspiring others and leading them.

#16 - Many respondents said the new century would demand special leadership requirements2

A total of 75% say that technologies make this generation of leaders have different initiatives than the previous generation. With the help of technology, leaders can virtually view the number of tasks accomplished by team members. It also helps leaders create a link between them and team members to communicate any change in their task while aiding project management.

#17 - "Lead through influence" or "the ability to lead more quickly." 65% choose the former, and 44% choose the latter2

Leading by influence gives leaders the capacity to affect the behavior or character development of someone or something. It is not to be confused for control, power, or manipulating others to get your way.

#18 - Asking about the requirements of a leader, 50% said that the skill to manage on a remote basis is essential2

47% chose the ability to control the workforce that uses both machines and humans. It is not surprising that the skill of managing remotely is on the high side. In response to covid19, organizations worldwide have transitioned to a fully or partially work-from-home environment. This skill is essential to help managers engage their employees and get maximum results.

#19 - 52% of employees who moved to a new job think their former company or manager could have prevented them from quitting2

This is because these employees did not feel safe and appreciated in their previous jobs. They also did not feel like the manager would train them to reach managerial roles.

#20 - Gallup Survey 2018 says only 22% of employees believe the leaders have a specific direction for their organization5

Leaders are paid to make decisions even when uncertainty stares them in the face, but they can navigate through complex times with the correct response. Clearly, a defined vision and mission prevent an organization from chasing the trends. Leaders should be able to make decisions that align with the brand promise. The purpose and direction of a company make workers feel that their job is important.

#21 - Employees who trust their employers are far more likely to advocate on behalf of their employer (78 percent), stay loyal to their employer (74 percent), be engaged and live the organization's values (71 percent), and be strongly committed to their jobs and the customers they serve (83 percent) 10

In the relationship between employees and their employers, trust goes far beyond being able to count on getting a paycheck for the employees and getting the job done for the employers. It means standing up for a worker who learns from a mistake. Trust is what a chief executive officer,  manager, and supervisor uses to gain workers' maximum output. Trust makes employees try their best to get the job done and work for each other for the greater good.

Leadership Statistics and Engagement facts in the US 

#22 - About 34% of employees are enthusiastic and engaged with their work. On the other hand, the percentage of disengaged (those who do not enjoy their working experiences) is 13%. 58% are categorized as not engaged4

Over the past two decades, the percentage of engaged US workers increased from 26% to 34%, and the percentage of actively disengaged dropped from 20% in 2007 and 2008 to 13%.

#23 - Organisations with a higher level of employee engagement experience four times the normal earnings-per-share growth4

Interesting Leadership Facts

#24 - Employee empowerment and appreciation is one factor that determines if an employee stays. About 79% quit their company because they aren't appreciated6

An appreciation culture is crucial for every company's performance and success. Most employees do not work to their full potential because they don't feel appreciated. A better approach to growing in a business world is by engaging employees and appreciating them. This impacts everything and brings more productivity.

#25 - The majority of millennials say they experience a lack of leadership development in their organization7

We might be looking at a vast leadership gap in the future. The gaps in leadership are certainly an issue, as most millennials lack management and leadership training. In-demand leadership skill training for employees will help reduce this gap. 

#26 - Shareholder ROI improves when there are more women in leadership8

Women are more likely to bring unique contributions when the company has a gender-inclusive culture. This means there will be a 1% increase in ROI for every female leader found in that company. 

#27 - 15% of women hold the roles of board directors compared to men. This is a 54% increase when compared to the statistics in 20108

The progress in the percentage of women in board representation has been slow. Men are likely to handle leadership roles, including board director positions. Although it is better than previous statistics, boardroom diversity is increasing.

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