of organizations say their leadership pipeline is not strong enough
Leadership Pipeline Gaps Statistics
Comprehensive statistics revealing critical leadership pipeline gaps across organizations globally.
Key insights
the numbers most people quoteOnly 11% of companies have a strong leadership bench ready for critical roles
of organizations report significant gaps in their global leadership pipelines
For every 100 men promoted to manager, only 87 women are promoted
Only 9.4% of Fortune 500 CEOs are women as of 2023
Companies with strong leadership bench strength achieve 18% higher revenue growth
- 60%
of new managers underperform or fail within their first two years
- 67%
of companies lack digital leadership capabilities for transformation goals
Practice the conversation before it counts.
Try itWhat we read into it
- 45%
of employees leave their jobs due to poor leadership or management.
Only 34% of employees rate their organization as effective at developing leaders.
Nearly 50% of Gen Z and millennials plan to leave their jobs within two years due to lack of growth opportunities, including leadership development.
Only 3 in 10 employees feel their organization develops them for future leadership roles.
1 in 4 women are considering downshifting their careers or leaving the workforce due to burnout and lack of support, potentially exacerbating leadership gaps.
Gen Z, the most diverse generation, expects diverse leadership; 77% prioritize diversity and inclusion in their workplace.
- 72%
of employees want their leaders to embrace new technologies to improve work processes.
- 45%
of employees claim their leaders lack the ability to effectively leverage digital tools for collaboration and decision-making.
What we read into it
- 60%
of organizations say their leadership pipeline is not strong enough.
- 85%
of organizations report significant gaps in their global leadership pipelines.
Only 11% of companies feel they have a strong or very strong leadership bench ready to fill critical management roles.
- 77%
of HR and business leaders report that leadership is currently a key challenge.
- 42%
of companies expect a leadership talent shortage in the next year.
Over 50% of companies report that leadership gaps are hindering their ability to achieve strategic business goals.
- 76%
of organizations reported that they struggle to find qualified candidates for leadership positions.
- 65%
of HR professionals stated that developing leaders is their biggest talent challenge.
What we read into it
- 85%
of executives believe that digital literacy is a critical skill for leaders, but only 30% consider their current leaders proficient.
- 67%
of companies lack the digital leadership capabilities required to drive their digital transformation goals.
- 75%
of organizations perceive a gap in leadership readiness for digital transformation initiatives.
- 70%
of organizations believe that AI and automation will transform leadership roles within the next five years.
Less than 15% of leadership development programs effectively integrate training on emerging technologies like AI/ML or cybersecurity for leaders.
Organizations with strong digital leadership capabilities are 2.5x more likely to achieve superior financial performance.
Just 18% of executives are confident their organization's leaders have the mindset and skills to lead through a complex digital transformation.
8 out of 10 executives believe that strong digital leadership is crucial for driving organizational agility.
What we read into it
The global market for AI in HR and leadership development is projected to grow at a CAGR of 30%+ from 2023-2030.
The average investment in leadership development per employee is approximately $1,500-2,000 per year for large organizations, yet effectiveness remains low.
Investment in digital leadership training grew by 30% in 2022, indicating increasing recognition of the gap.
The adoption of learning experience platforms (LXPs) for leadership development has grown by 25% year-over-year.
- 37%
of companies cite lack of investment in leadership development as a primary reason for skill gaps.
High-performing companies are 3.5x more likely to invest significantly in leadership development programs.
For every $1 invested in leadership development, organizations see an average return of $2.50 to $4.00.
Investing in leadership coaching yields an average ROI of 500-700%.
What we read into it
- 72%
of organizations reported that investing in leadership development improved their overall organizational performance.
Organizations with effective leadership development programs are 37% more productive.
Effective leaders increase operational efficiency by an average of 20%.
Only 10% of leadership development programs are considered highly effective by participants.
Less than 20% of HR and business leaders believe their current leadership development programs are effectively preparing leaders for future challenges.
Only 23% of leaders are seen as highly effective by all key stakeholders (supervisors, peers, direct reports).
- 60%
of new managers underperform or fail within their first two years.
Poor leadership selection processes account for up to 75% of manager failure rates.
Industry Insights
8 of 20 statisticsWhat we read into it
Only 9.4% of Fortune 500 CEOs are women as of 2023.
Women hold 35% of senior management positions globally in 2023, an increase of 10% since 2019.
Less than 1% of Fortune 500 CEOs are Black.
For every 100 men promoted to manager, only 87 women are promoted to manager.
Companies in the top quartile for gender diversity on executive teams are 25% more likely to have above-average profitability than companies in the fourth quartile.
Companies with more than 30% women in leadership positions are 1.4 times more likely to outperform companies with 10% to 30% women in leadership.
Diverse teams (in terms of gender, ethnicity, race, and sexual orientation) are more innovative and perform better by 35%.
Only 2.8% of VP-level positions are held by Black women.
Cite this report
Lindner, J. (2026). Leadership Pipeline Gaps Statistics. Careertrainer. https://careertrainer.ai/en/reports/leadership-pipeline-gaps-statistics/
Sources
last verified 26 Apr 2026- www2.deloitte.com8 stats
- shrm.org7 stats
- ddiworld.com7 stats
- gartner.com7 stats
- mckinsey.com7 stats
- gallup.com6 stats
- trainingindustry.com5 stats
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- hr.com4 stats
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How we collect and check these numbers
Each figure is taken from a published source with a reachable URL. We keep the original wording, group numbers by theme, and mark one counter-intuitive finding per section. Counts and sources on this page are derived from the cited rows — they are not marketing totals.