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Hello. I need an estimate of the market size or potential market, for leadership “readiness” assessments – either for the US and/or globally. I am interested in “readiness” as opposed to “high potentials.” Many thanks!
Hello! Thanks for your request for an estimate of the market size for leadership readiness assessments in the U.S.
The most useful sources I found to answer your question are the U.S. Bureau of Labor Statistics and Employee Training Institute.
The short version is that the estimated market size of the leadership readiness assessment market in the U.S. ranges from $13.84 milion to $21.77 million.
Below you will find a deep dive of my findings.
LEADERSHIP READINESS ASSESSMENT U.S. MARKET SIZE
According to the latest data from the Bureau of Labor & Statistics, the number of Managerial Level employees in the U.S. in 2016 is 17,418. These are all employees working in Management occupations including chief executives, general managers, operations managers and others.
Though leadership readiness assessment providers usually keep their product quote under wraps, I was able to learn the price for one. Grovewell's "Survey on Global Leadership Readiness" (SGLR) assessment is described as 'moderately priced' at $795. The leadership readiness assessment package includes a full assessment of a leader and up to 12 of his/her 360° participants. Grovewell applies the term 'global' to its assessment as it minimizes American value bias such as proactiveness and meeting deadlines.
If we take Grovewell's leadership readiness assessment product as the standard price, we have a market size of $13.84 milion (17,418 managerial level employees * $795 readiness assessment per leader) in the U.S. If the price is elevated to $1250 per assessment to reflect higher-priced leadership readiness assessment products in the market, the market size reaches $21.77 million (17,418 * $1250). Thus the market size for leadership readiness assessment in the U.S. ranges from $13.84 milion to $21.77 million.
The Employee Training Institute's 2015-16 Report of Training Trends also reports that U.S. spend on corporate training overall was over $70 billion in 2014. ETI identifies management and leadership training as the area which received the highest spending with 35% of funds or about $24.5 billion. This includes leadership development trainings and assessments as a whole.
LEADERSHIP READINESS ASSESSMENT MARKET PLAYERS
Some of the prominent brands in leadership readiness assessment products are Melos Institute, Development Dimensions International, and Korn Ferry. These brands provide leadership development tools and assessment along with leadership readiness assessments for CEOs, C-suite leadership, senior executives, and business unit leaders.
CONCLUSION
To wrap it up, based on available sources the estimated market size of the leadership readiness assessment market in the U.S. ranges from $13.84 milion to $21.77 million.
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