In today’s rapidly evolving and resource-conscious environment, leadership decisions have far-reaching consequences. Leadership assessments offer one of the highest returns on investment across sectors and are among the most powerful tools for achieving sustainable, long-term impact. By combining robust psychometrics with expert-led interviews, these tools help organisations identify, select, and develop leaders who not only perform effectively but also align with core values and strategic goals.
Global research shows that organisations with strong leadership assessment practices are 1.5 times more likely to outperform their peers. Despite this, up to 46% of new leaders fail within the first 18 months, often due to poor role fit, inadequate preparation, or cultural misalignment. In challenging or mission-driven environments, where resources are limited, the cost of a poor leadership hire can be particularly costly, reaching up to 2.13 times an employee’s annual salary. Beyond the financial impact, these missteps can delay progress, damage morale, and erode stakeholder trust.
Leadership assessments significantly mitigate these risks by offering a data-driven understanding of leadership style, emotional and cognitive agility, motivational drivers, and potential derailers. This evidence-based insight enhances the quality of hiring decisions, supports targeted development, and strengthens succession planning.
Critically, these tools also promote self-awareness and alignment with organisational values, enabling leaders to navigate ambiguity, build trust, and engage effectively with diverse teams and stakeholders. Organisations that leverage assessments as part of a broader leadership strategy report up to 29% higher levels of employee engagement and are four times more likely to be prepared for future leadership needs.
For organisations seeking to maximise their impact, optimise every hire, and build a resilient leadership pipeline, leadership assessments provide a cost-effective and strategic advantage.
References
- Global Leadership Forecast 2023, DDI, The Conference Board, and EY
- The Cost of Turnover, Center for American Progress, 2012
- Leadership Transitions: HR’s Role in the First 18 Months, CEB (now Gartner), 2016
- The Business Case for Leadership Development, McKinsey & Company, 2019
Myushka Naidu
In order to pursue and explore her passion for people and transforming organisations, Myushka obtained a Master of Commerce in Organisational Psychology from the University of Johannesburg and is registered with the Health Professions Council of South Africa. She has specialised in assessments and has experience in managing and consulting within various industries and sectors in the African region. Myushka is an accredited change practitioner utilising the PROSCI methodology and enjoys continuously learning new knowledge and skills to support individuals and organisations reach a synergetic state.
