Interesting Statistics About Effective Leadership

Leadership

Oct 9

You can’t read about leadership without coming across some incredibly eye-opening statistics. After all, it’s the leaders that direct an organization and keep things running smoothly. As such, it’s no wonder that there is so much research put into effective leadership, how to develop your leaders, why leadership matters, etc.

Here are five of the most interesting statistics about effective leadership that I’ve come across lately.

10,000 Baby Boomers Retire Every Day

To be honest, this statistic got spun a bit when it was initially released. That being said, it’s not inaccurate. Around 10,000 Baby Boomers are reaching retirement age-- age 65-- every day, according to the numbers. What does this mean for business?

If an organization hasn’t started implementing a succession plan yet, the time is now. In a few short years, baby boomers will be gone from the workforce, taking with them years of expertise and experience. In a nutshell, the next generation has some big shoes to fill. While the millennials are expected to outnumber Baby Boomers by 2019, we will see a drop in 20 million people from the Baby Boomers to Gen X, before picking back up with the Millennials. It’s time for businesses to make plans.

79% of Employees Quit Due to “Lack of Appreciation”

Empowering your employees and showing appreciation is one of the simplest things you can do as a leader to keep things running smoothly. It’s worth noting that another statistic quotes that a similar percentage of bosses think employees quit because they want more money.

While there’s likely some overlap here-- lots of employees will see increased compensation as a form of appreciation-- it’s likely that there are many of these individuals who don’t know how else to ask for more appreciation other than through a raise.

63% of Millennials Feel a Lack of Leadership Development

This is a scary statistic, especially considering the fact that we’re coming into one of the most significant leadership gaps in history. We’re about to lose a huge number of leaders from the workplace, yet many businesses are failing to give up-and-coming employees the leadership development they feel they need to succeed.

Again, this reiterates the importance of succession planning and creating a workplace culture that facilitates coaching, mentorship, and growth.

The More Women in Leadership, the Better the Shareholder ROI

The “CS Gender 3000” report is a collection of information from around the globe, looking at 27,000 managerial positions from 3000 global business leaders. In this study, they quote:

“With regards to business performance, we find clear evidence that companies with a higher proportion of women in decision-making roles continue to generate higher returns on equity, while running more conservative balance sheets. In fact, where women account for the majority in the top management, the businesses show superior sales growth, high cash flow returns on investments and lower leverage.”

This also showed that women hold just shy of 15% of board of director roles. While this is an unfortunately small number, it’s a 54% increase from 2010.

This statistic tells us that we need to do more to get women on the executive floor, and why hiring women into an organization that promotes leadership development and growth is essential for success.

Only 5% of Businesses Have Implemented Leadership Development at All Levels

Perhaps the reason that so many people feel as though they have limited opportunities for success is because the majority of leadership development is done at higher levels within the organization. It almost becomes a “chicken or the egg” situation, in which employees feel the need for more leadership development to advance, but aren’t able to get it until they advance.

Again, this ties into succession planning and appreciation. According to the Brandon Hall Research Group’s “State of Leadership Development 2015” report, the time to act is now. Only 5% of businesses have implemented inclusive leadership development opportunities, while 83% of organizations have deemed this an important action for succession. In short, no one is ready to meet the upcoming gap in leadership.

Key Takeaways

These numbers are just the tip of the iceberg when it comes to effective leadership. There are significant gaps regarding both gender and age, as well as the basic idea of businesses getting in line with the times.

However, not all hope is lost. By reviewing the numbers and comparing to where we once were, it’s easy to see that progress has been made in many areas in the last few years.

To bridge the gap between female and male workers, the various generations, and create a workplace of diversity and inclusion for all, organizations should consider bringing in outside consultants and coaches to help put more women on the executive floor, override unconscious bias and create opportunities for marginalized groups, and foster beneficial conversations between generations. Only then can we make these statistics less startling.

Types of Leaders

There are three types of leaders emerging right now — each having a different approach to mindset and strategy. And you have a choice as to which one you want to be. They are:

The Fear-Based Leader

This type is ruled by emotion. They are weighed down and overwhelmed by the tragedy of the situation, focusing heavily on where to place blame externally. They are in struggle-mode, with a victim mentality. This leader can’t stop scrolling their social media feed and watching or reading news. They are reacting to fear, and they refuse to look for solutions.

The Sit on the Sideline Leader

Less emotional than the fear-based type, this leader is in a more neutral position. They stay connected to the news stories (mostly the negative ones), but they haven’t developed a plan for what to do about it. They are in waiting-mode, hoping that the crisis will pass so they can get back to normal. Until then, they are choosing to press pause on business in as many ways as possible.

The Opportunity Leader

While this type pays attention to the news, they are more concerned with productive news and facts relating to positive responses to what’s happening. This type is focused on seeing the opportunity within and pivoting their business offerings to what their customers are needing right now (even if it wasn’t previously the plan). They are proactive in making changes, with an optimistic overall mindset. They are the most likely to stay ahead of the game.

Which Leader Do You Want to Be?

Every business is facing new challenges right now. There are new rules, and no is one is exempt from the changes at hand. The type of leader you choose to be, however, is based on what you bring to the situation and the perspective you choose to embody.

Do you want to be preoccupied with whose fault it is, like the fear-based leader?

Do you want to be slow to take a stance, like the sideline leader, waiting until it’s too late to take action?

Or do you want to look for creative solutions — finding new opportunities and leading with positivity like the opportunity leader?

My guess is you want to be the opportunity leader, admired for their resilience, strong leadership, and ability to lead their organization through a crisis to the other side where there is sure to be transformation and growth.

"The pessimist complains about the wind. The optimist expects it to change. The leader adjusts the sails." -- John Maxwell

How to Be the Opportunity Leader

Ensure that your employees feel safe, secure, and heard. Your people have been thrust into a situation that many have never experienced. They want to know you have their best interests at heart. And you want them to be there for you on the other side of this crisis. Maintain transparency in your communications (and communicate often). Lead with empathy and understanding. Be the confident leader you would want to follow in times like these.
Listen to what your customers need right now. You must be sensitive to what’s going on in the current situation. If you keep on with “business as usual,” your customers might be put off by your approach. Most everyone is dealing with drastic changes to their way of life, so you may have to seek new ways that you can help meet their current needs. Be willing to shift your products and services (and the way that you present them to customers).
Change strategy based on current opportunities. You may have been making great progress towards a goal before this pandemic hit. And now that goal might not be possible in the same way. Agility and resilience are crucial traits of an opportunity leader. Stay true to your organization’s purpose, and make a plan for the new situation, to the best of your ability. Handle the details, but don’t lose sight of the bigger picture.
Help your employees succeed virtually. The new reality is a team dispersed into their own homes, trying to maintain an office work approach. Align your expectations to the current reality. Many are now charged with working from home while schooling their children and having a spouse who is doing the same. Listen to their challenges and work together to find solutions for them. Make sure they have the tools they need to stay engaged including a collaboration platform and videoconferencing capabilities that will help maintain an “office culture” from home.

In Summary

Leadership through a crisis demands flexibility. It demands that you evolve your style as necessary throughout the course. People are looking to you now possibly more than ever before. They need you to be the calm, composed, patient leader that has a plan for navigating the challenge. Times of crisis will pull out the next generation of great leaders and great organizations — those who see opportunity and the potential for giving value.