Results of Leadership Studies

These studies prove Doug’s claim that excellent leadership means successful business. They prove clearly that leading well means the efficiency and productivity that leads to greater profit. These studies prove Doug’s claim that excellent leadership means successful business. They prove clearly that leading well means the efficiency and productivity that leads to greater profit.

The number one reason leaders in business fail: A lack of people skills.

Study: Fortune Magazine, 2001

If your people respect your leaders, you will have on average 10% turnover. If they don't respect your leaders, you will have on average 40% turnover.

Study: The Leadership Challenge,Barry Z. Posner,
Dean and Professor of Leadership, Santa Clara University, 2002

Fifty percent of the typical employee’s job satisfaction is determined by the quality of his/her relationship with the manager.

Study: Cited, F. Leigh Branhm, AMA article, 2005

The number one reason people leave their jobs is because they don’t feel appreciated.

Study: U.S. Department of Labor, 2003

The number one reason people leave their jobs is a bad relationship with the boss.

Study: Gallup Poll, 2005

A worker’s relationship with the boss is nearly equal in importance to his or her relationship with his or her spouse when it comes to overall well-being. Rapport with the boss largely predicts risk for depression and other psychiatric problems in the workplace.

Study: Brad Gilbreath, Researcher at Indiana-Purdue
University, published in the journal Work and Stress, 2005

Fifty percent of all workers have shaky, if not downright miserable relationships with their supervisors.

Study: Psychology Today, 2005

Less then forty percent of people, trust or have confidence in their senior leadership. The three-year total return to shareholders is almost three times lower at companies with low trust levels.

Study: A Watson Wyatt Survey cited by Shari
Caudron in periodical Workforce, 2002

The average cost to a business per lost employee (hiring and training a new employee) ranges from $3000 for an hourly employee to $100,000 for executives. This cost does not include customer service disruption, loss of morale, loss of experience, burnout and absenteeism among remaining employees, emotional costs and continuity loss.

Study: American Management Association, 2005

Bad bosses can raise the risk of coronary heart disease by 15%-20% and stroke by 33% in the people they lead. (What is the cost of lost time for sickness and healthcare from these corporate self-inflicted illnesses?)

Study: British scientist George Fieldman
cited in How Full is Your Bucket
by Tom Rath and Donald O. Clifton, Ph.D., 2004

In a study of nurses, those who worked for bad bosses—lacking in respect, fairness or sensitivity—had dramatically higher blood pressure than nurses working for bosses who were judged as considerate and empathetic—as a result they had a 20% higher risk of heart disease.

Study: Nadia Wager, Buckinghamshire Chilterns
University College, England, 2003

Fifty-six percent of respondents said that workplace stress hurt their lives to the point that they no longer have the time or energy to pay attention to themselves.

Study: Cited by Jilian Mincer,
Kansas City Star, 2003

Leaders with good soft skills out-performed yearly revenue targets by 15%-20%.

Study: Psychologist David McClelland, 1999

Organizations reporting Good/Very Good morale experienced a 1.8% rate of unscheduled absences while those reporting Poor/Fair morale had a rate of 2.1%. Organizations with Poor/Fair morale set aside 5.3% of their budgets to cover the costs of absent workers compared to 3.7% in organizations with Good/Very Good morale. While only 20% of organizations reporting Good/Very Good morale believe that unscheduled absenteeism is a serious problem for them, 41% of organizations reporting low morale find it a serious issue.

Study: by Harris cited in CCH News, 2003

A successful army is 75% morale and 25% technical ability.

Napoleon, 1805

Fifty-Five percent of workers who describe their workplace environment as ethical are more likely to be loyal and stay with the same organization.

Walker Information and the Hudson Institute, 2005

Poor communication skills cost the average organization 25-40% of their budgets every year.

Study: William V. Haney Communication and Interpersonal
Relationships, Text and Cases, Sixth Edition, 1992

Success in business is 85% ability to relate to other people and attitude and only 15% job knowledge and technical skills.

Study: Carnegie Foundation, 2005

Twenty percent of a person's success is intelligence; eighty percent is interacting with other people.

Study: CPA Journal, 2002

Social abilities are four times more important than IQ in determining success.

Study: University of California, 1996

The most valued and productive electrical engineers were not those endowed with genius but those who excelled in rapport, empathy, cooperation, persuasion and the ability to build consensus.

Internal Study by Bell Labs, 1997

In response to rudeness at work: 48% of employees decreased their work effort, 47% decreased their time at work, 38% decreased their work quality, 66% said their performance declined, 80% lost work time worrying about the incident, 63% lost time avoiding the offender and 78% said their commitment to the organization declined.

Study: Harvard Business School, 2009