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
#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.
#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 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 Mahjong Ways.
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.