When it comes to the success of a business, leadership plays a major role.
In terms of what makes someone a great leader, there are many non-negotiables that can’t be ignored. This includes organizing projects, being a respected, trustworthy and authoritative figure, plus, directing employees to the correct tasks.
When it’s done well, the only way is up, really.
So, on that note, let’s take a look at the most recent and relevant leadership statistics for 2023 so far, to put you in good stead for the second half of the year…
- According to DDI’s 2023 Global Leadership Forecast, leaders believe these five skills are crucial to success:
- Identifying/developing future talent
- Strategic thinking
- Managing successful change
- Influencing others
However, only 12% of leaders rate themselves as effective in all of them. Also, only 29% of companies offer training for these skills.
- Research from the study shows that when leaders are competent/excel in all five, the following results are more likely to happen:
- 3 times more likely to engage with and keep hold of top talent
- 2 times more likely to be prepared in preventing employee burnout
- 2 times more likely to feel comfortable working in different environments
- 3 times more likely to feel comfortable and confident working in a digital business environment
- Organizations with effective leaders in terms of identifying and developing talent have a 15% higher chance of internal hiring success rates
Women in leadership:
- Research shows that organizations with more women on their boards outperform those who don’t. Plus, companies with larger gender diversity amongst senior leaders are more profitable. As reported by Forbes, the percentage of women in senior management positions globally increased by 32% in 2022 - the highest number ever recorded. Despite this, women are still underrepresented in leadership roles
- Women make up 45% of senior positions in the UK. However, this number decreases from a mid-management level. 33% of director-level roles are held by women, while it’s only 23% at a VP level. In C-suite stats, women only make up a quarter of the most senior roles
- More than 10% of Fortune 500 companies are led by women. The magazine reported that January 2023 was the first month this stat has ever reached this level, revealing 53 companies on their list had female CEOs
- 66% of people believe that CEOs should take the lead on changes to their businesses rather than waiting for the government to impose them. According to the 2021 Edelman Trust Barometer, leaders were faced with the challenge of having to make quick and informed decisions amid uncertainty
- During and post-pandemic, employees turned to their leaders for guidance in terms of how they were going to navigate their new work lives. With the acceleration of digital tools, leaders were required to upskill themselves and their team members to cater to remote working situations. However, with the majority of today’s workforce falling within the Millennial and Gen Z age brackets, CompareCamp’s Leadership Statistics has revealed that only 25% of the workforce is confident that their company is building strong digital leaders
- DDI’s 2023 Global Leadership Forecast just revealed a concerning pattern regarding global leadership quality. 50+ countries and 24 industries were represented in the study, and data from 1827 human resources experts and 13,695 leaders were analyzed. The results confirmed there has been a 17% drop in the number of leaders who have said their organization has high-quality leaders. This drop - which has decreased the overall stat to 40% - is the biggest leadership quality decline in a decade
- Back in 2020, burnout among leaders was 60%. This has grown by 12% into 2023, with 72% of leaders admitting they feel “used up” at the end of the day. What’s more, leaders are also worried about burnout within their teams (a factor that has probably helped with the 12% increase). However, the study revealed that only 15% of leaders feel prepared to prevent employee burnout
- In terms of burnout in employees, one in five is at risk due to poor engagement between staff and leader. Leaders need to make sure they're providing clear and realistic goals and can prevent burnout by engaging with employees to help them reach their targets
- 58% of worldwide leaders work in a hybrid role post-COVID
- 49% of leaders working in a hybrid position admitted to feeling engaged at work
- Only a third said they feel energized by their work - this is around 10% less than in-house and remote staff
- 27% of leaders working in a hybrid role have said they’re effective at leading both hybrid and virtual teams. They have also said they require support and development to improve their virtual leadership skills. All in all, hybrid working environments have proved to be the least effective area overall for leaders
- 79% of employees hand in their notice citing the reason as lack of appreciation. These turnover statistics reveal that 8 in 10 employees will simply quit their job if they’re not treated well or valued as staff members
- 70% of US employees aren’t satisfied with their jobs because of negative management. This means leaders are responsible for engaging their employees and finding ways to make them feel appreciated
- Despite this, 78% of leaders prioritize improving their engagements with their workers. Leaders are finding new ways to create comfortable, stable and open environments, including team-building exercises, shorter staff meetings, and even one-on-one chats. Many businesses now also have an open-door policy which allows employees to easily address any issues they have in the workplace
Diversity in leadership:
- Diversity in the workplace is a non-negotiable for 67% of job seekers according to Team Stage. However, in terms of leadership positions, 78% of employees do not see any diversity
- Staggeringly, only 1% of Fortune 500 companies have CEOs of color
- Organizations that actively promote inclusion have a 120% higher chance of achieving their financial goals
- Diverse workforces can scale Gross Domestic Product (GDP) by 26%
- Organizations with racially diverse leadership are 35% more likely to outperform their competitors, according to Zippia
Effective leadership is integral
For the benefit of the business, boss and staff, effective leadership is paramount. It’s clear that some work needs to be done in certain areas - i.e., burnout in both employees and leaders, but that progress is being made in others, like the increase of women in senior positions.
Work will always have to be done to meet the newest trends and unprecedented changes, but as long as those in leadership roles accept challenges and can adapt to new things, growth can be made.
Developing the next generation of leaders is the key to generating and accelerating growth
Contact us today if you would like to hear more about how StratX Exl can help you develop the next generation of leaders and prepare your organization for a future of sustainable growth.