11th February 2016
New research from people management business Penna has unveiled that UK businesses are failing to plan their future leadership pipelines. The poll of 1,000 senior professionals revealed that 63% do not know if their organisations have in place a plan for future leadership.
Our recent eBook focused on UK Management and the very real issue associated with lack of management training – and this research has simply highlighted the fact that it is very much an ongoing issue which will have long term business repercussions.
It is extremely concerning how many organisations are failing to plan a leadership pipeline and invest in training for employees. In fact, Government data shows that the UK labour market will need one million new managers by 2020. Yet with the current lack of training, up to 150,000 employees a year are taking on management roles without adequate preparation. With this in mind it is vital that organisations get better at succession planning and developing talent and future leaders.
Every business knows the additional cost, disruption and lost productivity associated with staff turnover – so why are businesses failing to put in place the right skills and processes required to improve management, build careers and retain good employees? Having a leadership pipeline in place means that organisations are able to develop potential individuals and ensure that the training they receive is tailored to the role in question. Taking this proactive approach will ensure that the organisation has a competitive advantage moving forwards.
If long term strategies are not put in place now, by 2020 the lack of management skills will be a severe constraint on global competitiveness. There is no time for complacency. Organisations need to step away from the cost cutting and short term targets of the past decade and recognise the long term value of strong management and productive, engaged and committed employees. Critically, it is time to accept that good managers cannot be created overnight – in addition to relevant training, managers require mentoring and experience.
A strong pipeline should include talent from across the organisation, building and growing talent from within is critical to developing future leaders and recognising the potential of younger employees.