Many leaders today are struggling with confidence in their ability to lead effectively. Recent research shows leadership confidence has dropped to a three-year low, reflecting the increasing complexity and uncertainty leaders face in today’s fast-moving world. This challenge is often compounded when leaders are promoted beyond their current capabilities without sufficient support or preparation, leaving them feeling out of their depth and unsure how to meet expectations.
What Happens When Leaders Are Out of Their Depth?
What is the real cost when a leader in your business lacks the confidence or skills to lead effectively? The answer goes beyond individual struggles; it impacts your entire organisation. Poor leadership is strongly linked to declines in team performance, engagement, and retention. Research indicates that organisations with weak or ineffective leadership will see increased staff turnover rates, resulting in significant costs for recruitment, onboarding, and lost productivity.
The Ripple Effects: Decline in Engagement, Productivity, and Retention
The consequences of underprepared leadership are extensive. Companies facing leadership gaps report productivity drops of up to 68%, as disengaged and overburdened employees become less motivated and more prone to burnout. Gallup research also finds that nearly 42% of voluntary turnover is preventable, with ineffective leadership cited as a leading cause. Conversely, organisations with strong, confident leaders experience up to 10% higher productivity and retain 50% more employees, proving the critical value of capable leadership.
Investing in Confidence and Capability: A Business Imperative
The evidence is compelling: building leader confidence and capability must be a strategic priority for all organisations. Supporting leaders with targeted development, ongoing coaching, and robust mentoring is not just a nice-to-have—it’s essential to prevent costly turnover, improve team outcomes, and sustain competitive advantage. Companies that proactively develop their leaders see enhanced engagement, productivity, and long-term business success.