Are Older Leaders More or Less Effective? Understanding Age and Leadership Effectiveness

The Changing Demographics of Leadership

The global workforce is experiencing a significant demographic shift as its average age steadily increases. This transformation stems from several interconnected factors:

• Rising life expectancy combined with declining birth rates
• Baby boomers extending their careers beyond traditional retirement age
• Evolving retirement systems adapting to demographic realities

While the average retirement age in the United States currently hovers around 64–65 for men and 62–63 for women, there’s considerable variation in individual retirement decisions. Many professionals retire earlier, in their late 50s or early 60s, while others continue working well into their late 60s and beyond.

The conventional retirement age of 65, established in many Western countries decades ago, is gradually increasing:

• The U.S. is progressively raising the full Social Security retirement age to 67 for those born after 1960
• European countries are adjusting statutory retirement ages upward to between 67-70
• In Japan, with its rapidly aging population, many continue working into their 70s

Given these trends, understanding how leadership effectiveness may change with age becomes increasingly important for organizations.

Research Methodology and Overall Findings

To investigate leadership effectiveness across age groups, we conducted a comprehensive study comparing 76,322 young and middle-aged leaders (aged 25–59) with 3,260 older leaders (aged 65–90). The assessment utilized 360-degree feedback, with an average of 13 raters per leader, including managers, peers, direct reports, and others.

The evaluation covered 19 leadership competencies and included employee engagement metrics. An overall leadership effectiveness score was calculated based on 60 individual behaviors.

Our analysis revealed that while the aggregate effectiveness ratings from all raters were comparable between age groups, there were significant differences in how younger and older leaders were perceived by specific rater groups. Notably, managers and direct reports rated younger leaders more favorably. Despite these differences, the good news is that older leaders have a continued contribution to make, just as younger leaders bring some valuable characteristics.

Effectiveness Trajectories: Not All Leaders Age the Same Way

A critical finding of our research is that leadership effectiveness doesn’t follow a uniform trajectory as leaders age. The data reveals significant variation in how individuals maintain or develop their leadership capabilities over time.

When examining the distribution of leaders by effectiveness quartiles, we found:

• Among younger leaders, 32% ranked in the top quartile, while only 21% placed in the bottom quartile
• For older leaders, this pattern reversed: 30% appeared in the bottom quartile, with only 23% reaching the top quartile

This distribution demonstrates that while some older leaders maintain exceptional effectiveness, a larger proportion experience a downturn in perceived leadership quality. The key question becomes: what differentiates those who thrive from those who decline?

Competency Comparison: Strengths and Challenges by Age Group

Our detailed competency analysis identified distinctive patterns in how younger and older leaders were evaluated. This provides valuable insights into areas where older leaders excel and where they might focus development efforts.

Areas Where Older Leaders Excel

Older leaders received significantly higher ratings in seven key competencies:

1. Technical or Professional Expertise – Leveraging deep domain knowledge
2. Customer and External Focus – Prioritizing stakeholder relationships
3. Develops Others – Mentoring and growing talent
4. Strategic Perspective – Understanding broader business implications
5. Integrity and Honesty – Demonstrating trustworthiness and ethical behavior
6. Relationship Building – Establishing strong connections across the organization
7. Powerful Communication – Conveying ideas with clarity and impact

These strengths often reflect the accumulated wisdom, experience, and professional networks developed over decades of leadership.

Areas Where Younger Leaders Excel

Younger leaders received significantly higher ratings in eight competencies:

1. Learning Agility – Quickly adapting to new information and requirements
2. Innovation – Generating novel solutions and approaches
3. Change Leadership – Driving organizational transformation
4. Results Orientation – Demonstrating high energy in pursuit of goals
5. Inspiration and Motivation – Energizing teams toward shared objectives
6. Initiative – Proactively identifying and addressing opportunities
7. Collaboration – Working effectively across organizational boundaries
8. Problem-Solving – Analyzing and resolving complex issues efficiently

These areas highlight potential development opportunities for older leaders who wish to maintain or enhance their effectiveness.

Five Critical Development Areas for Older Leaders

Based on our research, we identified five specific areas where some older leaders may experience declining effectiveness:

1. Feedback Receptivity

Some older leaders develop resistance to seeking and incorporating feedback. Our data shows this significantly impacts overall effectiveness:

• Older leaders who actively solicited feedback achieved leadership effectiveness scores at the 83rd percentile
• Those who avoided feedback scored at just the 41st percentile

This stark contrast emphasizes that feedback becomes more—not less—valuable as leaders advance in their careers.

2. Innovation and Adaptability

Many organizational systems were established by today’s older leaders, potentially creating psychological ownership that resists evolution. Effective older leaders maintain the ability to:

• Constructively challenge established approaches, including their own creations
• Objectively evaluate current effectiveness against emerging alternatives
• Champion new approaches when they demonstrate superior results

3. Results Orientation and Energy

Some older leaders may experience declining energy or shifting priorities that affect their drive for results. This can manifest as:

• Reduced willingness to invest extraordinary effort toward challenging goals
• Lower visible enthusiasm for ambitious targets
• Decreased personal engagement in demanding initiatives

4. Problem-Solving Persistence

We observed that some older leaders become more tolerant of recurring problems rather than addressing root causes. Effective leaders maintain:

• Vigilance against emerging issues
• Intolerance for systemic inefficiencies
• Commitment to permanent resolution of problems

5. Collaborative Engagement

Some older leaders demonstrate a decreased interest in cross-functional collaboration, potentially due to:

• Belief in the primacy of their own unit’s perspective
• Reduced concern about interpersonal or interdepartmental conflicts
• Overreliance on established networks rather than building new relationships

Leveraging the Value of Experienced Leadership

Our research suggests that while some older leaders may face effectiveness challenges, many remain among the most valuable leaders in their organizations. Their accumulated knowledge, experience, and networks represent significant organizational assets.

For older leaders seeking to maximize their continuing impact, regular self-assessment of the five critical areas outlined above can help identify specific development opportunities. Organizations benefit most when they help experienced leaders maintain effectiveness while leveraging their unique strengths.

The most effective leaders—regardless of age—combine the wisdom of experience with continued adaptability, energy, and openness to growth. By understanding the typical patterns associated with leadership longevity, both individuals and organizations can ensure leadership effectiveness across the entire age spectrum.

Joe Folkman