We’re flat-out failing as leaders

We’re dropping the ball as leaders, and the numbers don’t lie. According to Gallup, a mere 36% of workers in the US are truly engaged in their jobs. That’s a failing grade by any measure.

And the cost of this disengagement? It’s staggering. Gallup estimates it’s sucking a jaw-dropping $483 billion to $605 billion out of the US economy annually in lost productivity. These aren’t just numbers; they represent real missed opportunities and wasted potential.

So let’s face the harsh reality: as leaders, we’re letting down our employees. An estimated 128 million working adults in this country are paying the price for our leadership shortcomings. It’s a sobering thought.

And here’s the kicker: despite companies pouring a whopping $166 billion into leadership training in the US alone, we’re still stuck with that 36% grade. It’s clear we’re not getting the return on investment we hoped for.

But let’s dig a little deeper. Did you know that women leaders, on average, make $18,000 less per year than their male counterparts for the same job? And minorities — Black or African Americans, and Latinos — still make up a smaller percentage of the total leadership population compared to their representation in the US population.

Moreover, 61% of current US leadership is Caucasian. But by the year 2045, Caucasians will become the minority in the US. This means that leaders need to do more than just pay lip service to diversity and inclusion; they need to take concrete action, not just when it’s making headlines, but every single day.

If we were to invest the $166 billion more effectively, we could recapture the $500 to $600 billion we’re losing in productivity. Relying solely on cost-cutting measures won’t cut it. We have to invest to deliver, and our people are worth investing in.

Acknowledging this reality means facing some uncomfortable truths. Whose fault is it, you might wonder? Well, it’s a mix of factors. Companies, leaders, and employees all share some of the blame, and all have a role to play in turning things around.

Companies need to rethink their approach to leadership development, focusing on effectiveness and inclusivity. They need to put their employees first before shareholders, because as the saying goes, “happy employee, happy customer.” And the same holds true here: “Happy employee, happy shareholders.” After all, companies have a far greater influence on the productivity of their employees than on their shareholders. This is why prioritizing employee well-being and engagement is not just a moral imperative but a strategic one for long-term success. When employees feel valued and supported, they’re more motivated, innovative, and productive, leading to better outcomes for everyone involved.

Leaders need to prioritize their employees and embody the principles of genuine leadership. They need to put their employees first and foremost, prioritizing daily character maintenance and honing their skills in connecting and planning. Additionally, leaders need to understand their privilege and feel accountable for creating opportunities for those they lead. It’s not just about personal success; it’s about lifting others up and creating a culture of inclusivity and empowerment within the organization

And employees? We need to step up, take ownership, and strive to be our best selves every single day. It’s easy to point fingers and wait for someone else to inspire us, but that’s not going to cut it. We each need to take ownership of our own results and strive to be the best versions of ourselves, day in and day out.

If all three parties mentioned above don’t change our ways now, we’re not just failing our current workforce; we’re setting up the next generation for failure too. Generation Alpha will be entering the workforce in just five years. Parents of younger kids in the Gen Alpha generation, look them in the eye and realize: if something doesn't change, we're setting them up for failure too. The time to act and transform the way we lead is here and now.