As Boomers Retire, Companies Struggle To Develop Senior Leadership
May 12, 2015 – With about 4 million Baby Boomers retiring annually, companies worldwide are experiencing a growing talent gap at the executive level, which comes as no surprise to us at Signature Source. A recent survey reports that nearly a third of firms polled are struggling to fill senior leadership role, while 59 percent agreed succession planning is more challenging in today’s economy.
The Global Workforce Leadership Survey, conducted by the talent management software company Saba and the management advisory group WorkplaceTrends.com, further reports that almost half of companies say “leadership” was the skill lacking in employees, and only 36 percent of those companies listed “leadership” as a strength in their companies. Further, while 39 percent of companies offer leadership development programs, a mere 15 percent of employees say the training they are receiving is preparing them for their next position.
“What’s concerning here is that, quite literally, the future leadership at some critical global organizations is at risk,” says Emily He, Chief Marketing Officer of Saba. “There’s more at play than the retirement of Baby Boomers; the fundamental approaches businesses take to find, develop and inspire leaders – at all levels – need to change.”
Data from the Pew Research Center reveals that 10,000 Baby Boomers will reach age 65 every day through 2030, a trend that started in 2011 when the oldest Baby Boomers hit that magic age.
According to the survey, only 11 percent of employees list a C-suite job as a career goal. In addition, only 36 percent of women, versus 64 percent of men aspire to a C-level position in their organization, while just 36 percent of Millennials want the top spots, verses 38 percent of the older Generation Xers.
Another take
Even when employees say they want to be a CEO, they are lacking in an important characteristic. A survey by the Korn Ferry Institute, a leadership and talent consulting firm, found that while 87 percent of the executives they surveyed last fall said they would like to be a CEO, Korn Ferry data, based on leadership assessments of more than 2.5 million leaders over the past four decades concludes that only 15 percent of executives are highly “learning agile,” a key predictor of success and a critical attribute of effective, breakthrough leaders.
“While the majority of executives say they aspire to leadership in the C-Suite, effectiveness there is easier said than done,” says Jane Stevenson, Vice Chairman, Board and CEO Services Practices, Korn Ferry. “Today’s global marketplace is characterized by slow growth and fast change. The speed and complexity of this business environment means that leaders are faced with making decisions without complete information. Perfect information is almost impossible considering perpetual demographic shifts, technological and regulatory changes and pockets of geopolitical instability. To succeed leaders must have a high quotient of learning agility.”
What’s needed?
According to the Global Workforce Leadership Study, employees are looking for personalized career direction at every stage, in most cases looking for weekly or quarterly feedback and access to development wherever they are in their careers. Younger employees expect contacts, content and courses offered in the same way they consume personalize content. In actuality:
- Only 52 percent of companies conduct annual performance reviews;
- 58 percent of companies still use spreadsheets as their primary way to track performance metrics;
- Less than a quarter of businesses worldwide are using advanced technology for insights into their people and effectiveness of their talent programs;
- 23 percent are using big data and metrics visualization;
- 21 percent tap the predictive analytics potential of machine learning today.
“The bottom line is that companies need to rethink their talent management and employee engagement strategies,” says Dan Schawbel, Founder of WorkplaceTrends.com. “Personalized employee career development programs, accessible tools and tracking systems and a focus on redefining and re-engaging leadership – at all levels – will help deliver on the innovation and growth that businesses require.”
