The hidden cost of promoting the wrong leaders and how to get it right
According to Gallup, 82% of companies get it wrong when selecting managers. Most promote high-performing individual contributors — those who excel at their current roles — only to discover that success as a doer doesn’t necessarily translate into success as a leader. The fallout is tangible: disengaged teams, missed performance targets, high turnover, and, ultimately, reduced profitability. The good news is that leadership talent exists in every organisation, often hiding in plain sight. The challenge for hiring executives is ensuring the right people are identified, developed, and placed in roles where they can thrive, whether they’re drawn from internal ranks or recruited externally.
This is where executive search, talent management, and talent mapping come into play. These practices aren’t just HR functions; they are business-critical strategies for building resilient, engaged, and high-performing teams. When done correctly, they ensure your leadership pipeline is filled with individuals who can inspire, motivate, and deliver against organisational goals, not just those who can hit individual KPIs.
Why high performers don’t always make great leaders
The instinct to reward top performers with promotions is understandable. These employees often display deep expertise, reliability, and dedication, yet the qualities that make someone exceptional at their craft are rarely the same as those needed to lead others. Leadership requires a different set of skills, including emotional intelligence, strategic thinking, communication, and the ability to motivate and develop a team.
A sales representative who consistently exceeds targets may not know how to coach underperforming colleagues, mediate conflict, or build a collaborative environment. A star engineer might lack the patience to manage diverse skill sets or communicate complex technical goals to non-technical stakeholders, for example. Without these abilities, even the most talented individuals can inadvertently erode morale and productivity when elevated into leadership roles.
This disconnect is why so many teams struggle after a promotion decision, despite seemingly having the “best” candidate in charge. It also explains why Gallup found that managers account for at least 70% of the variance in employee engagement scores across business units. When the wrong person is in the role, engagement plummets.
What defines a great leader?
While every organisation has unique goals, values, and cultures, the skill set of an effective leader tends to share core elements. The leaders who drive engagement, loyalty, and performance typically demonstrate:
- Emotional intelligence: The ability to understand and manage their own emotions and those of their team, building trust and psychological safety.
- Strategic thinking: A capacity to see beyond immediate tasks, aligning team efforts with long-term business objectives.
- Influence and communication: Clarity in sharing the organisation’s vision and persuading diverse stakeholders to rally around it.
- Coaching and development skills: A focus on elevating others, not just delivering results themselves.
- Resilience and adaptability: The steadiness to navigate change and lead teams through uncertainty.
Crucially, these traits don’t always reveal themselves on a performance scorecard. Identifying them requires a structured approach to assessing not just what employees do, but how they think, behave, and motivate others.
The role of talent mapping and executive search
To avoid costly missteps, organisations need to move beyond gut feel and subjective decision-making. Talent mapping and executive search are essential tools for ensuring leadership roles are filled by those best suited to the challenge.
Talent mapping involves systematically assessing your current workforce to identify potential leaders, evaluate readiness, and pinpoint gaps. It combines performance metrics with behavioural and psychometric assessments to uncover individuals who may not be the most visible top performers but have the qualities to inspire and lead. This process also creates clear pathways for development, so high-potential employees are nurtured long before a vacancy arises.
Executive search, meanwhile, extends your reach. Sometimes the ideal leader simply isn’t within your current ranks — and that’s not a failure, but a recognition that growth and transformation often require fresh perspectives. Professional search partners, like DAV, specialise in understanding your business holistically: your core objectives, purpose, values, and the expectations of your workforce. They combine deep market knowledge with rigorous assessment to identify external candidates who align not just with the technical demands of a role, but with your culture and long-term goals.
For C-suite executives, getting leadership selection right is more than a talent issue; it’s a strategic imperative. Leaders shape organisational culture, influence employee engagement, and directly impact financial outcomes. A disengaged team, led by someone who lacks the skills to inspire, can cost your organisation far more than a missed sales target — it can erode innovation, increase turnover, and undermine customer experience.
Investing in successful talent management strategies (and the right partners to support them) mitigates these risks. By relying on data-driven assessments, external expertise, and a long-term view of workforce planning, you can ensure your leadership pipeline is filled with the right people.
Building a leadership pipeline that works
To ensure your organisation isn’t part of the 82% getting it wrong, a proactive, strategic approach is essential. Consider these steps:
- Use talent mapping to identify who within your organisation has the potential, not just the performance, to lead.
- Provide coaching and training for high-potential employees, focusing on soft skills like emotional intelligence and strategic communication.
- Work with executive search specialists like DAV to bring in fresh talent and benchmark your internal candidates against the market.
- Technical skills can be taught; cultural alignment and the ability to motivate people often cannot.
- Track engagement, retention, and performance metrics to ensure your leadership decisions are delivering results.
The DAV difference
DAV has been connecting businesses with the right leaders for decades, helping organisations build leadership teams that deliver results and elevate entire workforces. By taking the time to understand your business — from your strategic goals and values to the needs and aspirations of your employees — DAV ensures that every placement, internal or external, is more than a hire; it’s a step towards a thriving, resilient, and engaged organisation.
In a business environment where talent is your most important asset, promoting or hiring the right leaders is the difference between teams that perform and teams that excel; between being part of the 82% who get it wrong, or the 18% who unlock the full potential of their people.


