It’s no secret the U.S. workforce is aging, and the No. 1 occupation for workers age 50 and over is management. As their executives and managers head toward retirement, American businesses not only lose their institutional knowledge but also their leadership.
Pair this inevitable drain with an already tight labor market and looming digital transformation in many industries, and succession planning rises as a priority.
Organizations nationwide are recognizing the need to prepare.
Through our client work, we’ve seen that rather than just pulling their best people off the floor, promoting them and hoping for the best, a manufacturer is opting for a more planned approach. And a health care network isn’t waiting for those inevitable retirements.
These organizations, and many like them, are increasingly taking the time to identify high-potential, adaptable workers who have natural management temperaments, and then getting to work training them before they’re needed. This proactive mindset helps ensure future success for the emerging leaders as well as their organizations.
This approach also supports employee retention in a few key ways. First, it demonstrates to these individuals that there are opportunities ahead and that the organization supports its managers. Second, it helps ensure the engagement and retention of workers these newcomers will lead. While many factors influence employee engagement and retention, Gallup data shows that managers are solely responsible for 70% of the variance in team engagement. This is an enormous responsibility to leave to chance. (In any discussion of skills mapping, it’s important to note that not all high-potential workers are natural leaders, and separate development paths should be outlined for non-managerial high-potential workers, too.)
How can organizations identify workers with the strongest leadership potential?
It’s common to rely on existing leaders and managers to spot high-potential talent, often based on current performance alone. By adding a science-based assessment to these talent reviews, organizations can identify workers with innate leadership potential.
This distinction is important. While past performance is a good indicator, the right set of personality traits will enable the individual to naturally excel as a manager at a faster pace. Using an objective and consistent selection process also eliminates any bias and makes it more likely that in the long run, the organization’s management candidates will find their new roles energizing and rewarding, rather than draining and stressful.
Assessment models vary, but some key leadership traits to be identified are: mental agility; tolerance for risk, change and ambiguity; persistence; regard for people; and optimism. Of course, many other skills are needed for strong leadership, but those are more easily strengthened through consistent training and experience.
What training for emerging leadership should include:
Leadership training is a continuous process. The curriculum begins by building the capabilities of an organization’s high-potential employees before they make the first move into leadership. Their initial training should focus on introspection, discovery and self-management. Mastering leadership capabilities takes time and a proactive approach helps organizations build a plan to address future leadership needs.
Three things to include in this initial training are:
- Mindfulness: What is the individual’s natural leadership style? What drives them? By first building self-awareness, new leaders become more mindful of their behavior and of how their actions affect their teams.
Self-awareness is a component of emotional intelligence (EQ) — a proven driver of management results. High EQ in leaders not only helps in their own cognitive tasks and interpersonal relationships, but also helps create a positive work environment and improves the job satisfaction of the employees they lead — tied to motivation, stress management and productivity. And various studies show that training improves EQ. Training results are further enhanced when learners are committed to developing this skill.
- Adaptivity: Building on this self-awareness and EQ foundation, new leaders should learn how to adapt their approach based on the situation and to meet the needs of individual team members and the group. Adaptive leadership skills help new leaders see their role in developing others and their teams, helping them to identify just the right time to incorporate new challenges and encourage autonomy. Developing this leadership flexibility also allows them to consider the complex effect of their behaviors on multiple (and sometime competing) objectives — vital in a world full of uncertainty and change.
- Accountability: A third aspect of emerging leader training explores personal accountability. Professionalism is key to making a smooth transition into leadership. Employees want to know that their leader is reliable, organized and dedicated. These capabilities and reputations do not happen overnight (or with the announcement of a promotion). By exploring the elements of personal accountability and charting strategies to build it, potential leaders consider the formula that will help them succeed as they begin and progress in their careers.
Leadership Training Is a Continuous Process
Obviously, leadership development doesn’t end with this preparation for emerging leaders. As they are promoted and step into the role of leading other people, they need the skills to build effective teams, manage employee performance and establish strong relationships. As their leadership path advances further, they may gain more responsibility for leading the organization. Training must evolve to include topics such as managing change, solving problems, making decisions and defining the company’s strategy.
Leadership development is an ongoing process that should begin before emerging leaders are asked to step up. This proactive approach in succession planning helps high-potential employees gain confidence and make a smoother transition when the time comes.
