Fact Sheet: Leadership Development Stats Every HR Professional Should Share with Their CEO

As HR professionals, it's crucial to equip our CEOs with compelling data that underscores the necessity of investing in manager and leadership development. Without it, the C-suite may overlook the importance of people development, leading to detrimental consequences for organizational growth. In reality, high-growth organizations can’t afford NOT to invest.

Whether you’re advocating for the creation of a manager academy training program or seeking to implement assessments like DISC throughout your organization, you need to be armed with hard data to make a compelling case. To assist you in this endeavor, we’ve curated a selection of impactful statistics outlining the costs, profitability, and ROI of various aspects of leadership development:

Poor Leadership

79% of people would seek new employment due to bad leadership. Source: Career Addict, ‘Why People Quit Their Jobs’, 2020.

Turnover and Talent Retention

34% of employees leave within the first year, primarily in the first 90 days. The top reason people leave (43%) is because the role doesn’t meet their expectations. Source: Forbes Advisor, Key HR Statistics And Trends In 2024, 2023

Manager Effectiveness

1 in 3 workers say their manager can’t lead a team Source: The Society for Human Resources Management - SHRM, ‘The High Cost of a Toxic Workplace Culture’, 2019

Burnout

76% of HR leaders report that managers are overwhelmed by growing job responsibilities. Source: Gartner, ‘Top 5 HR Trends and Priorities for 2024’, 2023

Employee Engagement

Companies with highly engaged employees are 21% more profitable and 17% more productive. Source: Forbes Advisor, Key HR Statistics And Trends In 2024, 2023

Alongside these statistics, we’ve created graphics that you can easily incorporate into your presentation to your CEO. These statistics offer a clear illustration of the profound impact that effective leadership development can have on organizational outcomes. Convincing your CEO shouldn’t have to be difficult – let us help you with the data you need.

If you’d like to delve deeper into the subject, prominent HR reports from Gallup, SHRM, and Microsoft provide invaluable insights into the benefits of prioritizing leadership development initiatives.

Ready to equip your CEO with the compelling data they need to prioritize leadership development initiatives? Click the button below to download our “Why Invest in Manager and Leadership Development?” fact sheet (no email required). With this invaluable resource at your disposal, you’ll be well-prepared to advocate for strategic investments in the future success of your organization.

Together, let’s empower our organizations to thrive by strategically investing in leadership and manager development.

If you need more information on convincing your CEO, email us at experts@orcahrsolutions.com. We are here to help!

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HR and Leadership Development Lessons Learned in 2023 and Trends for 2024

A hdn reaches down to several wooden dowels designed to look like people and selects one.

In the ever-evolving landscape of the business world, 2023 was a year of significant transformation.

While ‘The Great Resignation’ might be officially over, those working in HR and Leadership Development heard its echoes up until 2023. A staggering 79% of people would seek new employment due to bad leadership, according to a 2020 survey by Career Addict, ‘Why People Quit Their Jobs.’ Additionally, according to The Society for Human Resources Management’s (SHRM) 2019 report, The High Cost of a Toxic Workplace Culture, employee turnover has created a loss of $223 billion in the U.S. over five years. These stats are not just a wake-up call, but a stark reminder to rethink the ways companies hire, nurture, and manage leaders. 

Poor leadership isn’t the only difficulty, 2023 presented HR with an array of challenges. From attracting suitable talent and strengthening employee-manager relations to re-engaging the workforce, adjusting to a hybrid work model, skill-building, working on DEI initiatives, and more, HR teams grappled with an overwhelming number of complex tasks. These challenges underscored the need for HR to be more adaptable, strategic, and empathetic than ever before, playing a vital role in shaping the future of work in a rapidly changing business landscape. 

2023 was the time when rapid changes took place in the business world, teaching companies the importance of agility and innovation in HR practices, alongside the critical role of leadership in steering teams through change. Leaders showed resilience and innovation by embracing unprecedented challenges and reinventing strategies to nurture an evolving workforce in a changing economic state. But, there’s more to do in the coming years to achieve a robust and adaptive organizational environment. Reflecting on these insights, let’s delve into the key lessons learned in HR and Leadership Development 2023 and the emerging trends for 2024 that are shaping a new era in HR and leadership development.

Key Lessons Learned in Leadership & HR in 2023

2023 was a year of challenges for HR and Leadership sectors and also reshaped the future of organizational strategies. Here are some lessons learned over the past year. 

The Continuation of Hybrid Culture

Remote and hybrid work models continued up until 2023, teaching organizations the importance of flexibility in work arrangements. While HR teams reworked their policies and learned innovative ways of remote hiring, leaders focused on developing cohesive teams and effective communication for enhanced productivity and success. 

Employee Well-Being

Employee well-being directly impacts employee productivity and retention. According to the American Psychological Association’s ‘2023 Work in America Survey’, 92% of workers said it is very (57%) or somewhat (35%) important to them to work for an organization that values their emotional and psychological well-being. Leaders who prioritized mental well-being and destigmatized mental health discussions cultivated a more supportive and empathetic workplace culture, leading to higher levels of employee engagement, loyalty, and overall organizational health.

Agile and Resilient Leaders

The unpredictable business environment highlighted the necessity for leaders to be agile, resilient, and adaptable to overcome challenges and boost team morale. Companies understood the importance of agile and resilient leaders and worked with the HR teams to develop training programs that focused on building leaders who could adapt to changing environments, think strategically under pressure, and bounce back from challenges.

Cultural Fit

More than skills and experience, companies learned that aligning a candidate with the company values and culture is a necessity in the changing business world.

Diversity and Inclusivity

Both HR and leadership recognized the importance of fostering diversity and inclusivity among employees. This involved unbiased hiring practices and leadership approaches that embraced varied perspectives and backgrounds.

HR and Leadership Development Trends for 2024

Remote and Hybrid Work Model to Continue

2024 will reshape the business world as organizations develop adaptive and innovative strategies to ensure that HR and leadership align well with the needs of the organization and the employees. Here are some pivotal trends set to redefine how organizations operate and lead in this exciting new chapter, on their path to success.

According to a 2023 Bankrate survey, 89% of the workforce either prefers 4-day workweeks, remote work, or hybrid work, indicating that hybrid or remote work has become the new normal and organizations need to adapt to this change. HR and leaders must invent ways to build cohesive teams that can work collaboratively, irrespective of their geographical location. They need to establish robust ways of communication besides creating a work environment that makes employees feel valued and supported.

Data-Driven Hiring

Besides substantial financial setbacks, a poor hire leads to decreased productivity, lower employee morale, and high employee turnover affecting the organization in the long run. In 2024, organizations need to focus on data-driven hiring that takes a comprehensive approach to talent acquisition. With insights, HR leaders can not only align candidates with organizational values, culture, and the required skills but also eliminate any likelihood of bias, ensuring an efficient and robust search process.

Use of Technology

Technologies like Artificial Intelligence and Machine Learning are paving new ways in HR and leadership. Gartner’s report, AI in HR: The Ultimate Guide to Implementing AI in Your HR Organization, says “a massive 81% of HR leaders have explored or implemented AI solutions to improve process efficiency within their organization.”  HR and leaders can make use of AI and ML to enhance recruitment strategies, analyze employee performance, personalize learning programs, optimize talent management, and predict employee success within the organization, besides other tasks. 

Robust Hiring Process

Evolving skill shortages, candidate experience, and expectations, changing workforce demographics, low retention and high turnover rates, and economic and political uncertainties are some of the reasons talent acquisition is a challenge in 2024. An inefficient hiring process negatively impacts employee morale, team dynamics, productivity, and overall organizational efficiency, which is why a robust hiring process is paramount in the highly competitive business world to ensure the attraction and retention of top talent, alignment with organizational goals, and long-term success.

Leadership Development

Gartner’s 2023 survey and report, Top 5 HR Trends and Priorities for 2024 says one of the top two priorities for HR leaders in 2024 is a leader and manager development. HR expects front-line managers to guide teams to success through evolving business challenges, especially when teams are geographically distributed.

However, the pressure to lead and guide a whole team toward success, along with the fear of failure and the pressure to perform, creates a feeling of self-doubt amongst the leaders, leaving them vulnerable to anxiety and burnout. In fact, 53% of managers report that they’re burned out at work, according to 2022 research from Microsoft, ‘Hybrid Work Is Just Work. Are We Doing It Wrong?’, which surveyed 20,000 people in 11 countries.

These insights and stats are the reasons why training and leadership development is a necessity in any corporate setting. Yet many companies are undervaluing development programs with a 2018 study from West Monroe Partners, ‘Companies are Overlooking a Primary Area for Growth and Efficiency: Their Managers’, stating that “59 % of managers overseeing 1 to 2 people receive no managerial training at all, along with a significant 41% of those who oversee 3 to 5 people.”

The study also states that new managers often mimic their previous bosses when there is no formal training. In fact, “42% of new managers developed their management style through observing a previous manager, rather than through formalized training.”

In 2024, HR teams need to ensure leadership development within the organization so that leaders and front-line managers are equipped with skills to manage stress while effectively guiding their teams through the complexities of the modern business environment.

Upskilling

In a rapidly shifting world, employees and their leaders must stay ahead of the curve and learn new skills. With the advancement of technology, there’s so much to learn and do, efficiently and effectively. Teams must focus on digital competency, critical thinking, and adaptability to new technologies and work models.

ORCA's SMARTHIRING© and Manager Academy© for Organizational Success

ORCA is uniquely positioned to help high-growth organizations increase revenue through investing in their people in 2024.

ORCA’s SMARTHIRING© is a comprehensive hiring strategy that combines objective methodologies with science-based tools to ensure your hiring decisions are grounded in data-driven insights. And, ORCA’s Manager Academy© analyzes the effectiveness of leadership and managers in your organization and helps design customized programs to work on competencies and capabilities. This may include 1-on-1 executive coaching, leadership assessments, and team coaching and training for forward progress.

With our programs, we help organizations meet the evolving needs of the business world, fostering a workforce that is skilled, adaptable, and ready for the challenges ahead.

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How Tech Companies Can Manage Stress Through Assessments

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Workplace stress is at an all-time high and those in the tech and IT industry are shouldering more than most. 

According to Gartner, Inc., by 2025, nearly half of cybersecurity leaders will change jobs, 25% for different roles entirely due to multiple work-related stressors. Employee burnout and anxiety are leading to record attrition rates, and organizations that rely on the knowledge and dedication of their workforce are facing a significant threat to their security teams.

Although many of these companies know that workplace stress is an issue, often it can be considered an individual issue, not something the company itself needs to change. Or if a company does want to address stress, they aren’t sure how to diagnose, make changes and measure that change. That’s where stress assessments and workshops can help to give good data and actionable steps to make an impact. 

But first, let’s talk about the issues that cause stress in tech organizations.  

The damage of workplace stress when left unaddressed

When employees experience stress, it can have a significant impact on the organization as a whole. Prioritizing the wellbeing of employees by taking steps to manage stress levels is critical for organizations, and leaders, who wish to create a healthier and more productive workforce. Workplace stress can cause: 

  • Burnout: a common result of prolonged stress, can cause employees to feel exhausted and disengaged from their work. This can lead to decreased productivity, lower morale, and increased absenteeism.
  • Attrition: employees who experience high levels of stress are more likely to leave their jobs, seeking opportunities with better work-life balance or lower stress levels. 
  • Work Quality: when employees are stressed, they may make mistakes, miss important details, or fail to take necessary precautions, leading to an increased risk of errors. 
  • Security Threats: employees who are stressed and burnt out are less likely to follow security guidelines and protocols leading to a higher risk of data breaches. 

Security threats are especially concerning for the IT and cybersecurity sector where insider threats such as data theft, sabotage and malicious activity require constant vigilance from employees. Mismanagement of critical security tasks can lead to data breaches and compromise an organization’s sensitive data which could easily result in fines, penalties and punitive consequences. 

Diagnosing stress through assessments

Workplace stress can be a complex issue that manifests in different ways depending on the individual and the organization. Without a proper diagnosis, it can be difficult to determine the root cause of workplace stressors. For example, you may not be aware of which departments or roles are most affected, what specific stressors are present, or how stress impacts individual or team performance. Without this information, any solution or intervention implemented may be ineffective or even counterproductive, as they may not address the underlying causes. Not to mention, without a clear understanding of the problem, it can be challenging to measure the effectiveness of any interventions.

Assessments, like the TTI SI assessment offered by ORCA, are powerful tools that can diagnose issues like stress on an individual, team or organizational level. This allows for real data that can give companies a baseline of where they are at now as well as showing improvements over time. As we all know, without data and measurable results, C-suite leaders and board members are less likely to take action. 

Addressing stress individually for leaders

Leaders who take an active role in managing stress at their organization create a more positive and productive work environment that benefits not only their team but the organization as a whole. When leadership is involved it sends a clear message to staff that their wellbeing is a top priority, leading to increased engagement and a more positive work culture. However, our philosophy is that leaders must show by example and manage their own wellbeing first before they can help others. Actions from leadership trickle down and sets the tone for the whole organization.

That’s why helping leaders identify their individual stressors is vital to the organization as a whole.

When working with ORCA, the TTI SI Assessment is paired with ORCA 4 A’s of Conscious Leadership framework so leaders can identify their stressors and take action to solve them.

Diagnosing stress within teams and organizations

Similarly, assessment can also be utilized to diagnose workplace stressors within teams or in the organization as a whole. Organizations can: 

  • Determine how stress is impacting productivity 
  • See if work demands are spurring discontent 
  • Uncover unresolved issues across teams 
  • Have the prompts to address stress head-on

This helps companies then implement programs and actions to reduce the specific stressors that are most important. 

Companies that proactively address and effectively manage workplace stress are seen as more attractive places to work and will help retain and attract great talent. 

Get a sneak peek.

With stress being such an issue for many of our clients, we’ve created some additional free resources so you can learn more about how to actionably diagnose and manage stress in your organization. 

I’ve created a free 15 minute mini-course on 7 ways you can diagnose organizational stress—AND 7 ways to actionably address that stress, now.

In just a few minutes, I’ll give you an overview of: 

  • Why stress management is important for organizations
  • The 7 factors of stress in the workplace 
  • How to measure the 7 factors of stress individually, as a team, and as an organization
  • Determining actions to manage and address organizational stress

Once you’ve completed the mini-course, you’ll also have access to try out the TTI SI Assessment for free. This way you can see what’s included in the report  and experience the value it can provide for your organization. 

Get access to the mini-course and your free assessment here

How CHROs Can Lead (Consciously) During a Shallow Recession 

We know 98% of CEOs are forecasting a shallow recession in the next 12 to 18 months. As more and more CHROs and People Officers are included in overall business decisions, these roles will be important in determining how well the business does. While CEOs and CFOs promote caution in expenses, how can CHROs help lead, consciously?

Provide support + guidance in talent management

CHROs can help by ensuring employees are motivated and committed to the organization’s success during a downturn through programs that promote employee well-being and foster a positive workplace culture.

Talent management can not only survive but evolve during an economic downturn. Adaptation is the fourth step in our Conscious Leadership framework, because now that we’ve become aware; acknowledged where we’re at (in this case, on the verge of a recession); and taken action toward our preferred outcomes, now we can adapt. Guiding what recruiting will help the organization be most productive at this time will be an adaptive process CHROs can impact greatly. 

Help identify + retain key employees

CHROs can help the CEO to identify and retain key employees who are critical to the organization’s success in higher-growth business lines.

With the highest tech layoffs since the dot-com crash 20 years ago, retaining key employees will be crucial to keep business going. Encouraging feedback and input from employees; fostering an atmosphere of flexibility; and placing an emphasis on clear work objectives are all routes to greater retention and employee engagement, but one thing we see as an even bigger barrier for CHROs to help through is stress management

Keep an eye on stress management

A shallow recession is a time of uncertainty, which can lead to a high level of stress for CHROs and other leaders. 

According to recent data, more than one-third of working Americans reported experiencing chronic work stress, and just 36 percent said their organizations provide sufficient resources to help them manage that stress. During a recession? That number is sure to be higher. 

It’s really important to take care of yourself first, prioritizing effective self-care. You can’t fill others’ cups without first filling yours. 

Being open and empathetic goes a long way. Everyone will react differently to change and a recession and everyone is impacted differently. Taking strides to reduce stress across the organization will be more important during this time. 

Raising the consciousness and competencies of your organization starts with your leadership. Leaders are multipliers and when we bring our whole, conscious, intentional selves to the table, people thrive and flourish (and therefore our businesses thrive and flourish).

Be proactive with stress management for recession-proof HR

CHROs need to be ready to come to the executive table with an actionable plan to lead during the upcoming recession. If you’re a CHRO and need help developing your organizational leadership objectives and execution, reach out to our experts at experts@orcahrsolutions.com

Or take a complementary stress assessment and 30 minute consultation to see how you can use it within your organization. Email experts@orcahrsolutions.com to request yours.