Survey of Nearly 14,000 Global Leaders Shows a Restless Pipeline of Leaders Exposing Company Vulnerability
PITTSBURGH, Pa., Feb. 8, 2023 /PRNewswire/ -- DDI, a global leadership consulting firm, today released its 2023 Global Leadership Forecast, the largest and longest-running global study on the current and future state of leadership. This year's study found only 40% of leaders reported their company to have high-quality leaders – reflecting a 17% drop from just two years ago and the biggest decline in a decade. That puts current leadership quality ratings nearly on par with those in the wake of the 2007-2008 economic crisis.
Spanning over 50 countries and 24 industry sectors, the study examines responses from more than 1,800 human resource professionals and nearly 14,000 leaders from over 1,500 organizations. With faltering confidence and leadership burnout at record height, DDI's study pinpoints the factors deterring great talent from pursuing leadership roles and provides companies with actionable insights for overcoming those challenges to build an agile leadership bench that drives growth.
The report reveals that half of CEOs say developing the next generation of leaders is a top challenge for their organization. Only 12% of companies report confidence in the strength of their bench, creating a huge obstacle to growth.
According to DDI's data, the reason for the decline is two-fold:
"Companies are facing a leadership crisis—existing leaders are frustrated and exhausted, benches are thinning out and there is a significant shortage of leaders prepared to fill key roles. In order to survive, organizations must invest in creating an environment where emerging leaders feel valued and can find purpose in their work," said Stephanie Neal, director of DDI's Center for Analytics and Behavioral Research. "That means prioritizing trust, authenticity and diversity, along with a holistic approach to career growth and development."
In addition to these challenges, DDI's data also revealed:
"We know that leaders who trust their senior colleagues are 3X more innovative and those who feel a strong sense of purpose are 9X more likely to feel engaged and 2.4X more likely to stay with the company," said Tacy Byham, Ph.D, CEO of DDI. "That's why it's so urgent for companies to take action to rebuild confidence and trust in their leadership—so they can retain and nurture the next generation of leaders."
For more information, including the full Global Leadership Forecast report, visit ddiworld.com/global-leadership-forecast-2023.
DDI is a global leadership consulting firm that helps organizations hire, promote and develop exceptional leaders. From first-time managers to C-suite executives, DDI is by leaders' sides, supporting them in every critical moment of leadership. Built on five decades of research and experience in the science of leadership, DDI's evidence-based assessment and development solutions enable millions of leaders around the world to succeed, propelling their organizations to new heights. For more information, visit ddiworld.com.
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