Talent Development Leader

The Good and Bad of Leadership Development

Monday, October 16, 2023

Recent data reveals incentives to invest in it.

DDI’s latest CEO Leadership Report shows that organizations with an effective executive team in place are 2.4 times more likely to be able to engage and retain top talent and 2.9 times more likely to financially perform in the top 10 percent of their industry peers.

Developing leaders is a top three priority for organizations, after recruiting and employee experience, according to research from McLean & Company’s HR Trends Report 2023.

3 in 10
companies are changing requirements for leadership selection to make development opportunities more accessible to more employees. (McKinsey & Co)

55%
of businesses are implementing new forms of leadership training to foster greater adaptability and resilience among executives. (McKinsey & Co)

1/4
of TD professionals said their budget for leadership development decreased in 2023. (LEADx)

Half
of organizations reported that first-time leaders possess the biggest skills and competency gaps. (McLean & Company)

9 in 10
companies say finding time was their biggest obstacle to getting leaders to participate in leadership development activities. (ATD)

69%
of TD professionals said that leaders who participate in leadership development were less likely to leave the organization. (ATD)

16%
of TD leaders indicated that creating new or updating existing programs is their number 1 leadership development priority. (LEADx)

• ATD, Leadership Development: Preparing Leaders for Success, 2023 https://www.td.org/research-report/leadership-development

• LEADx, LEADx Leadership Development Report 2023, 2023 https://leadx.org/articles/the-leadx-leadership-development-report-2023/

• McLean & Company, HR Trends Report 2023, 2023 https://hr.mcleanco.com/research/ss/hr-trends-report-2023

• McKinsey & Company, State of Organizations 2023, 2023 https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/the-state-of-organizations-2023

Sources: ATD, Leadership Development: Preparing Leaders for Success, 2023; LEADx, LEADx Leadership Development Report 2023, 2023; McLean & Company, HR Trends Report 2023, 2023; McKinsey & Company, State of Organizations 2023, 2023

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About the Author

ATD Staff

The Association for Talent Development (ATD) is a professional membership organization supporting those who develop the knowledge and skills of employees in organizations around the world. The ATD Staff, along with a worldwide network of volunteers work to empower professionals to develop talent in the workplace.

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