Are you about to be confronted by a leadership crisis? Too many business owners haven’t planned sufficiently for who will fill key positions in the next few years.

To avoid operational interruption because of staffing changes, business owners must plan ahead. Hiring great people who can eventually move into leadership roles is a huge concern. Both large and small companies struggle with this issue.

What are the Current Hiring and Retention Challenges?

In the most recent NFIB survey, roughly half of small businesses say they see few or no qualified applicants for their open positions. And business leaders report that attracting qualified candidates and retaining skilled, high-​performing employees is still a challenge.

Leaders cannot count on their existing employee base to fill upcoming management roles. 57% of CEOs state that retaining existing employees is a big priority this year. If they can’t retain employees, they won’t have internal candidates to promote.

In addition, Mark Perna, writing for Forbes, reports that fewer young people want the traditional career path into management. 

Every organization needs a candidate pipeline to avoid encountering a leadership crisis. Training the existing workforce to fill these roles can be beneficial. Current team members understand the product or service being developed and sold. They also have familiarity with the culture and know the company history. The good working relationships with other team members will give them an edge over external candidates for leadership positions.

Are Managers Finding Purpose in Their Work?

One paradox is that fewer frontline leaders are finding purpose in their work, but c‑suiters are more content. What explains this disconnect?

One issue is that frontline leaders are stressed. And the Gen Z employees who might eventually move into entry-​level management roles see that stress. Gen Z team members, in particular, are seeking a work-​life balance. They are also focused on maintaining good mental health.

AI Concerns

Managerial stress is coming from many angles. Transitioning to an AI-​focused workplace without good communication about expectations leaves people confused.

At this point, 74% of CEOs feel enthusiastic about AI and its ability to improve what their business does. But for frontline leaders, only 58% share the enthusiasm.

Fear looms large. Many people, including managers, don’t have the information they want regarding AI. Specifically, they are concerned that they may lose their jobs.

Communication and Training Shortfalls

In addition to a lack of communication, many first-​line managers have not received the kind of training they need. These team members reached management jobs by having great work or technical skills. But without solid development of their soft skills, they’ll be struggling to ace their management positions.

How Can Better Communication Resolve Stress?

First, business owners must ramp up communication about their AI intentions. Many leaders may not yet be sure how AI will impact their organizations. As they experiment behind closed doors, their employees are left to wonder.

Experts recommend that leaders begin sharing their plans for AI use with managers. It’s okay to admit that you don’t have all the answers. It’s even better to solicit input and ideas from managers.

Communication that travels in both directions allows staff members to have a say in their future.

How to Communicate Organizational Change

The pace of organizational change continues to increase. Over 60% of analysts see change management as a key skill needed for leaders. However, only 37% have been trained to handle change management. A big part of handling the change is improving communication skills.

When it’s time for managers to communicate change, it must be done in an empathetic way. Workers want leaders who show empathy for them and their well-being.

Managers may need additional training to succeed at this part of their jobs. Leaders should ask managers to take a psychometric assessment to reveal the areas of focus for additional training.

Managers who review their own results will gain insights into the way they communicate. They should compare their style to that of their employees’. If they adjust their communication style, they may experience a better outcome. With better outcomes, there are fewer risks of a leadership crisis developing.

How Can Leaders Identify and Train Future Internal Talent?

Identifying and developing future talent can be challenging. Around 61% of analysts believe this is a mandatory core skill. In general, about 32% of leaders have had this kind of training.

Assessment data from a platform like TeamTrait can help. Every person has their own approach to work. Every team member possesses unique skills based on their natural tendencies and prior experiences.

A psychometric assessment can highlight a person’s strengths when it comes to potentially leading people. If a team member has the ability to motivate others but lacks emotional control, their manager can recommend appropriate training as part of a prospective leadership development program.

A team member who lacks problem-​solving skills may need coaching to learn how to come up with solutions. Or they may need to think outside of the box and gather their team for ideation sessions when a problem comes their way. 

As organizations prepare for upheaval in the work process, the leaders must support managers. In turn, managers must emphasize with team members and train them for the future. Using psychometrics assessment results to personalize communications and training can help to avoid a leadership crisis.

Photo by Antoni Shkraba on Pexels.