First annual Talent Report indicates future SA leadership lacking

The company has analysed data from four million candidate and employee assessments from 205 countries and territories held in its Talent Analytics database. Exploring the global availability of current and future leaders, the report reveals Hong Kong, Germany and the UK have more effective leaders today than any other country in the study; South Africa ranks 20th while Denmark, Brazil and Norway have the lowest supply.

Commenting on local leadership challenges, SHL South Africa, head of science and research, Kim Dowdeswell says, "Despite having a strong supply of leaders for today, South Africa has future leadership issues."

"Ahead of other BRICS countries"

"The strength of supply of leadership talent in South Africa is ahead of other BRICS countries (Brazil, Russia, India and China) but leadership levels lag behind developed G8 nations and the global average," adds Eugene Burke, chief science and talent analytics officer.

The landscape of leadership potential changes significantly, when analysing the supply of leadership talent for tomorrow*. Mexico, Turkey and Egypt have the greatest source of potential future leaders. In stark contrast, South Africa falls out of the top 25 ranked countries, the UK drops 18 places to fall out of the top 20 and Hong Kong falls from poll position to 20th. Mexico and Brazil jump 19 and 21 places respectively, with Mexico topping the list.

"As the global landscape changes economically and socially, nations in the newer economies have a huge growth opportunity if they can identify, nurture and develop the leadership potential they have," continues Burke.

Gender divide still wide

The indices also reveal South African women as ranking 14 globally in leadership capability today, and despite the research showing negligible differences in capability between the sexes, the gender divide in leadership positions is vast with only 28% of leadership roles held by women and just 8% of businesses led by a female CEO.

However there are stark differences in critical motivational factors that distinguish people in senior positions worldwide, which may be preventing women from progressing to the top. The findings expose men in leadership positions as being more motivated by power and fear of failure, whereas women are motivated by a constructive working atmosphere and receiving recognition.

"With three men to every one woman in leadership positions on average globally and men being motivated by power and a fear of failure, SA boardrooms are self-perpetuating an unbalanced culture, which is likely to naturally disengage women from aspiring to reach a senior position," says Dowdeswell.

It is evident that females are becoming increasingly demotivated as they progress in their careers. At companies with more than 1000 employees around the globe, women's representation diminishes significantly as responsibility and titles increase: 48% of junior-level positions are held by women, which drops to 36% for mid-level roles and just over 26% for senior level jobs including senior vice presidents and above according to CEB research.

Burke says, "Do the math. If you do not tap into the leadership potential of women, given that every other person is a woman, then companies are making the search for effective leaders even more difficult for themselves. What odds would you prefer: 1 in 15 or 1 in 30? For businesses to remain competitive in the global economy, the C-suite culture will have to change to encourage more women to continue their career path to the top. Moving away from an organisational culture framed by fear of failure to one founded on recognition for contribution and performance will be a stronger attraction for potential female leaders."

"Organisations need to build greater intelligence about their leadership talent, be aware consider aspirations and motivations, and be open to exploring potential barriers to success. This is about helping to build the capability of our next generation of leaders so a diverse and inclusive workforce can be achieved," concludes Burke.

Top 25 countries with leadership potential today and tomorrow

8Indicates those counties ranked in the top 25 leaders today but not listed in the top 25 for leadership potential tomorrow
*New entry - those countries not ranked in the top 25 leaders today but listed in the top 25 for leadership potential tomorrow

Effective Leadership

Effective leaders are those individuals with many of the following attributes: the ability to direct, influence, motivate, communicate and work harmoniously at peak performance to achieve an organisation's goals.

An effective leader today is an individual, who currently has many of the key leadership characteristics identified by this research, including the ability to:

• build relationships
  
• solve problems
  
• communicate effectively
  
• think laterally
  
• influence
  
• respond positively to change
  
• organise
  
• motivate and be motivated

Leaders of tomorrow are those individuals who exhibit some of the key leadership characteristics (outlined above) but require additional development to realise their full leadership potential.

Additional findings

• Globally, only one in 15 (6.7%), managers and professionals qualify as leaders today. One in three managers and professionals have the next tier of leadership potential but for this level of people the journey to realise that potential is longer and needs targeted investment. The value of investing in these people is substantial because there are six times as many managers and professionals with this level of potential than leaders for today.
  
• In China (Taiwan), Germany, Sweden, Switzerland and United States, the supply of leadership for today and tomorrow is stronger than the average global supply. While competing for leadership talent remains a challenge in these geographies, the odds of finding effective leaders for today are significantly higher at one in 10 vs. the global average of one in 15.

Methodology

The 1,12 million assessments were taken from its Talent Analytics database and analysed for leadership potential by gender and generation. The data set is based on assessments from 67 countries between 2006 and 2011. Its Occupational Personality Questionnaire and motivation questionnaires were analysed from employee level through to executive positions to determine these diversity findings. The assessments were taken by job applicants or those currently employed by organisations ranging from FTSE 100 companies to small businesses. The sample size is of people aged 18-65, with a 50:50 split of men and women.

Go to www.shl.com/talent-report-uk for a free report.