According to our research, a majority of UK employees have more respect for leaders who have worked their way up through an organization, and two-thirds consider them good or very good leaders. Despite this, the majority of UK companies hire externally for leadership positions. Only 38% have leaders in their companies who are promoted internally, with just 35% of future leaders identified and nurtured through leadership programs.

The new Taleo Research study Grow Your Own CEO examines the attitudes and preferences of UK workers in regard to internally developed and externally recruited leaders, their expectations about leadership and career development programs, and experience in their own organizations. Key findings include:

• Internal promotion is the most effective leadership development strategy. 66% of companies who recruit from inside have leaders regarded as good or very good compared with 51% who generally recruit from outside.

• Mobility and feedback drive engagement. 76% of employees say they will be more committed to their company if they have a clear view of promotion and job opportunities, while 74% say regular appraisals will drive up their level of commitment.

The study uncovers large gaps between leadership development best practices and organizational behavior. The findings show that companies investing in internal talent, mobility, and development programs can maximize their talent assets, improve retention, increase productivity and engagement, and put leadership succession plans in place. A robust talent and performance management strategy enables leaders to be identified, developed, and retained.