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Business Leadership Statistics
The corporate world has been tied to leadership gap statistics for quite some time now. There’s simply not enough diversity in CEO roles. There are also not enough candidates with the leadership skills needed to take on managerial positions.
In this first section, we’ll be discussing the situation in the corporate world and how it’s shaping the workplace.
- 77% of corporations experienced leadership gaps in 2019.
Employees typically seek jobs at companies that have leadership development, statistics show. But employers seek candidates that already have some form of leadership skills. This is because management doesn’t want to spend the time or money to train employees to develop their leadership skills.
Because of this never-ending (not to mention vicious!) cycle, the stats just keep on getting worse and worse.
- 83% of employers state it’s crucial to develop leaders at all levels.
Employers in the US spent top dollar to develop their workers’ skills through training and education. While 83% of employers agree that it’s crucial to develop their employees’ skills, only 5% of corporations actually implement these improvements. Perhaps this is the reason why poor leadership statistics are so much more common than statistics about good leadership.
- 63% of Millennials believe their leadership skills are not being fully developed.
Another study showed that 71% of Millennials will leave their job within two and three years if they feel their leadership skills are lacking and there’s no room for growth.
But who cares about what Millennials think, right?
Wrong. Considering the fact that Millennials will soon make up most of the workforce, everyone should.
- Only 14% of CEOs have the leadership talent they need to grow their businesses.
Finding candidates to fill leadership roles can be difficult. In larger corporations, CEOs need candidates that have strong personalities to take on managerial roles. Unfortunately, few have the ability to handle the job.
- The need for digital leadership skills will increase in 2020, as only 16% of corporations are successful in digital marketing.
The rapid growth of social media technology and marketing will result in the need for candidates who have digital skills. So, the number of social media managerial positions is growing every day.
- The nature of the workforce will change because millennials will make up 75% of the workforce in 2025.
What do the leadership development statistics 2019 mean for the next few years? Leaders are preparing to manage an entirely different generation of employees in 2020. Remote working and flexible hours are increasingly becoming the order of the day.
With this much employee freedom, leaders have to find new ways to maintain their staff and ensure workflow doesn’t diminish.
Effectiveness of Leadership
Great leaders are unselfish people. They care about their employees and their wellbeing. Unfortunately, there are many CEOs who don’t know how to manage their staff.
To be an effective leader, one must engage with employees regularly to ensure there are no problems within each department. Perhaps the following leadership statistics will give you an indication of how you can be an excellent leader in your industry.
- 80% of work accidents occur due to stress from a negative work culture.
How do you measure good leadership?
Well, you can start by implementing positive reinforcement. Positivity is the ultimate method to motivate change in the workplace and increase workflow. Offering incentives for work performance, creating a light-hearted environment, and acknowledging employees’ efforts will encourage them to work more efficiently.
Numerous workplace wellness stats indicate that employee encouragement and acknowledgement go a long way toward increasing productivity.
- 79% of employees quit their jobs due to lack of appreciation.
Be kind to your staff and treat them well – and you’ll receive the same in return. According to these employee turnover statistics, 8 in 10 employees quit if they don’t receive valuable appreciation.
One of the simplest ways leaders can show employees that they care is to express their appreciation for the work they do. This can be in the form of an emailed letter of appreciation or award ceremonies.
- 15% of candidates state they turned down job offers due to negative work culture.
The workplace is like a second home. That’s why candidates seek positions in corporations that have a positive working environment.
So, what do employees value most about a company? 55% state that reasonable pay is important, while 54% consider fair treatment as crucial in developing a positive work culture.
- 70% of employees in the US are unhappy in their jobs due to negative management.
Leadership stats state that many employees are miserable in their jobs because of a lack of effective management. This could be because leaders are struggling to find ways to engage with employees. But how leaders engage employees is up to them.
Studies show that employees feel less stressed and under pressure when they can engage with their leaders regularly. Employees will work more effectively if they have proper guidance from their leaders.
- 78% of business leaders are focused on improving their engagements with employees.
To create a stable environment, business leaders are finding new ways to engage their staff. This can be through short staff meetings, team-building exercises, or one-on-one engagement. Many are also implementing an open-door policy so that staff can address issues easily in the workplace.
Workplace Leadership Statistics
What makes a great leader in the workplace? Well, inspiring leaders are people who are able to run their departments like clockwork without creating a stressful and unpleasant environment. But only a select few CEOs are strong enough to be successful in their leadership roles.
Workplaces should include more diversity in their leadership roles. The following workplace leadership statistics will give you an indication of what the workplace leadership roles currently look like.
- 38% of new leaders fail within the first 18 months.
This figure is extremely worrying. So, how can you avoid becoming part of this statistic? Well, in order for leaders to become successful in their roles, they must implement positive reinforcement, motivate their team, and lead by example.
- Women are more resilient leaders than men.
According to women leadership statistics, females have shown to have more resilience (54.7 percentile) than men (49.3 percentile). Women also have excellent problem-solving skills, and they’re incredibly reliable and motivated.
Fun fact: Finland now has the youngest female prime minister in history (Sanna Marin) at the age of 35.
- Only 10% of CEOs are natural leaders who guide staff by example.
An excellent manager will show staff how to behave through their own actions. Leaders can’t reinforce punctuality and productivity if they don’t lead by example.
Employees tend to watch closely what their leaders are doing, and they will follow their actions.