Talent assessment company Mercer | Mettl has come out with a survey report that, that says over 34% of global organizations agreed to an absence of internal succession pipeline as a major challenge in leadership acquisition.
Over 500 global organizations of different size and scale in different industries participated in the survey. According to the report, approximately 42% of the surveyed organizations confessed to not possessing any leadership competency framework indispensable in determining the leadership capabilities crucial for organizational success and business bottomline. Not limited to this, the report also concluded that the leadership competency framework is responsible for an approximate of 25% increased chance of a company having successful leaders in the future.
The BFSI sector, as uncovered by the report, emerges as the leading industry having the most percentage of organizations (78%) leveraging an effective leadership competency framework. On the contrary, in the media and telecom industry, only 10% of the organizations are using it for their leadership acquisition process.
In addition to these insights, some of the new trends from the ‘Leadership Hiring Trends 2019’ are:
The skills most commonly assessed by companies in potential leaders are personality skills (38%), domain skills (33%) and cognitive skills (29%).
The most commonly used talent assessment tools for successful leadership acquisition include Psychometric Assessments (31%), Task-based Assessments (23%) and Online Leadership Assessments and Face-to-face Interviews (16%) and Assessment Center (14%).
The organizations which leverage scientifically validated talent assessment tools for leadership hiring are approximately 35% more likely to succeed as opposed to the organizations which use traditional hiring methods only.
There’s a positive march in this direction though with 77% of organizations using scientifically validated talent assessment tools to assess and hire the leadership talent.
Larger organizations have a higher adoption rate of modern talent assessment tools, systems, processes, and technology. Not only this, they usually take longer to complete their leadership hiring process than small and medium-sized organizations.
The report went on to say how it takes an average of 3.5 months to complete the leadership hiring process by most of the organizations.
Speaking on the survey, Siddhartha Gupta, CEO, Mercer | Mettl, said, “There is no denying the gravity of an effective leader in the success of an organization. By studying what the rest of the world is doing to raise future-ready and transformational leaders for digitally- transformed workspaces, an organization can assimilate and accelerate their leadership hiring paradigm.”
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