Talent Development in an Era of Change: Preparing Future Leaders

Between the rapid onset of automation, artificial intelligence and generational change, businesses face an unprecedented challenge:how to ensure enough qualified people and prepare a new generation of leaders. According to the World Economic Forum, by 2025up to 50% of employees need retraining or development of completely new skills– a consequence of the rapid onset of technologiesweforum.org. At the same time, many industries are experiencingretirement of experienced “baby boomers”, which brings the risk of losing key know-how; up to82% of leaders fear the leakage of valuable knowledgealong with the wave of retirementsbenefitnews.com. For companies, the issue of talent development and succession is therefore increasingly pressing. Topictalent developmentis key today.

However, successful organizations do not solve the lack of necessary skills only by recruiting from the outside –they systematically build their talents from within. The solution is to develop the so-calledlearning culture, socultures of continuous learning, where employees feel supported in their development and have access to training, mentoring or rotation of various roles. Such an emphasis on growth will return to the company many times over: up to94% of employees would stay with their employer longer if they felt they were investing in their developmenthortoninternational.com. The following insights show how to build talent from within, prepare future leaders, and turn people development into a competitive advantage.

Building a culture of continuous learning

Instead of relying on expensive sourcing of ready-made experts from the market, leading firms startpurposefully develop own employees. The first step is to identify,what skills will business need in the coming years, and subsequently prepare training programs that will fill these gaps. An example can be a company that has identified key future competencies – from data analytics or digital marketing to soft skills such as leading virtual teams – and launched an internalacademyfor their development. Through a combination of online courses, workshops and project assignments, it has enabled people toimmediately apply new knowledge in practice. The result?Instead of recruiting expensive outside experts en masse, she raisedover 70% of the necessary specialists internally, often from among existing employees who welcomed the chance to grow their careers.

Such an approach was also reflected in loyalty – the company not only filled critical positions, but also improved talent retention. Statistics show thatemployees in companies with active internal mobility stay almost twice as longthan in organizations without itinc.com. In other words, who has the opportunity to growinsidecompany, has no reason to go elsewhere. For example, the industrial giant Siemens implemented a global digital learning ecosystem with courses focused on new technologies – resulting in40% increase in employee engagement and coverage of key positions thanks to internal traininghortoninternational.com. It is not just about technology companies: the telecommunications leader AT&T has decided to invest in1 billion USD to retrain 100,000 of its employees(a third of the global workforce) rather than replacing them from outside – to ensure that their skills are not obsolete in a few yearshrdive.comhrdive.com.

The important thing is thatthe culture of learning must be based on leadership. Managers should actively encourage team members to participate in training, give them space to learn from mistakes and apply new ideas. Organizations like FirstClass Holding fully reflect these trends – in the era of AI and digital transformation, they emphasizecontinuous educationits people (including client teams) so that everyone can respond flexibly to changing market demands.Companies that invest in the development of their employees today will be one step ahead tomorrow– because they will get an adaptable, innovative and loyal team ready for future challenges.

Talent Development: Succession and Development of Future Leaders

While general skill development is essential, equally important isthink systematically about succession. Unfortunately, many companies still do not have a clear plan,who will take over key management positions in 5-10 years. For example, a survey in Australia showed that up to 40% of companies do not have a succession plan even for middle managementroberthalf.com roberthalf.com– often because management pushes this topic aside for other priorities. Such an attitude is short-sighted. Successful companies on the contrarythey identify prospective leaders ahead of timeand they prepare them purposefully. Talented individuals are often found in middle management or among professionals who show ambition and the ability to lead.These “players of the future” must be caught in time– give them the opportunity to lead important projects, involve them in decision-making and provide them with experiencedof mentors, from whom they can learn.

A modern approach is to create special programs for emerging leaders. One of the clients of FirstClass Holding, for example, introduced the so-called“Shadow Board” – shadow councilcomposed of a group of talents under the age of 35 who regularly participated in strategic meetings of the top management as an advisory voice. This experience allowed the youth to see“big picture”of the company’s operations and develop strategic thinking, while bringing fresh ideas and the perspective of the millennial generation to the leadership. The company thus builtstack of prepared leaders– when a higher position becomes available, he has someone to promote. We know similar examples from around the world: the Gucci fashion house in 2015 put togetherMillennial Shadow Boardof young employees, whose inputs, according to CEO Mario Bizzarri, were literally“a wake-up call for management”. While rival Prada’s sales were falling by 12% at the time,Gucci saw a 136% increase in sales– also thanks to the innovations brought to the management’s attention by this shadow councilcmr.berkeley.edu. The importance of involving the young generation in leadership is not only in the preparation of individuals, but in the overall recovery of the corporate strategy with new initiatives.

There is no need for large formal programs – you can start with simple steps. For example, by rotating employees through different departments to get a broader picture, or by enteringstretch tasks(more demanding projects) by talent whose leadership skills we want to test. It is important to haveprocess to recognize potential(whether through performance and potential evaluation, managers’ recommendations or an open invitation to sign up for talent programs) and then a plan for working with these people.is especially appreciated combination of expertise, leadership skills and sharing of company values ​​– these three traits are most often mentioned by leaders as key when choosing their successorroberthalf.com. If a company can cultivate a leader from within, it gets a person whohe knows the company culture, has grown loyally with the company and is motivated to continue– which is often priceless compared to an external manager who has yet to gain the trust of the team.

Development as an investment, not an extra expense

As the pressures for results mount, the lure tends to becutting budgets for education and development. This will reduce costs in the short term, but in the long run it’s avery risky move. Teams can get stuck with outdated capabilities, morale plummets, and the business loses its competitive edge in innovation. In addition, saving on people does not pay even according to the companies themselves – almost90% of organizations that would consider cutting development budgets in times of crisis admit that doing so would create a significant barrier to future successccl.org. In other words,they know that without investing in people they would undermine their own future.

Therefore, employee development is not an additional “HR initiative”, but directlyinvestment in the firm’s resilience and agilityin a time of constant change. Leadership teams should regularly consider whether theircurrent capabilities are sufficient for tomorrow’s challenges– and whether they have the next generation ready to take over when the time comes. As one of the HR directors aptly noted:“Well-prepared leaders know how to lead the company even through a recession – they keep the team fired up, higher productivity and start growth faster after the crisis.”ccl.orgccl.orgInnovation today is moving too fast for us to afford to stagnate. Therefore, even in bad times, successful companies do not completely give up on education – rather, they look for effective ways (online courses, internal trainers, micro-learning) to continue it at a reasonable cost.

Managers should create an environment where learning is valued – where“I don’t have time to develop”does not exist as an excuse. Finally,what if a key member of your team leaves tomorrow, or a new technology disrupts the market?Do you have a ready replacement or missing skills in reserve, or do you rely on recruitment from the external market, where competition is also fighting for talent? This question hangs over every organization. Companies like FirstClass Holding therefore emphasize the systematic development of people – they see it asthe best insurance policy for the future. A talented team that can keep up with the times is the most valuable asset a company can have.People development is not a cost – it is a strategy for survival and growth.

Message at the end:Ask yourself if your employees have the skills that tomorrow will demand and if you see future leaders in your team. If not, it’s time to invest in their development. The world is changing fast – those who invest in their people will be prepared to change with it.

---

Three key questions and answers on the topic of talent development:

Question 1: How to identify future leaders in the company in time?
Answer:Identifying future leaders starts with trackingperformance and potentialemployees. It is not enough to notice only current results – qualities such as the willingness to take the initiative, the ability to learn new things, communicate and motivate others are also important. Companies often use evaluation tools (e.g. 360-degree feedback or so-calledtalent review) where managers discuss which people in the team stand out and could grow to higher roles. A good practice is to introduceprograms for “high-potentials”, in which the company selects a group of prospective employees and purposefully rotates them, trains them or involves them in strategic projects. This will, on the one hand, verify their potential in more demanding tasks, and on the other hand, strengthen their bond with the company. When identifying successors, leaders most often look fora combination of technical expertise, human (management) skills and compliance with company values ​​– exactly these three attributes were identified by the majority of managers as key when choosing their successorroberthalf.com. A good signal is also an employee who is naturally looked up to by his colleagues and who already showsproactive approach and responsibilitybeyond the scope of their tasks. Such people are worth noticing and further developing – for example, by assigning a mentor from the top management who will guide them. The entire company should know about the leadership’s openness to recognize and promote internal talents – employees then have the motivation to show what’s in them, because they see that there is a chance to advance.

Question 2: Which new skills should companies focus on when developing and retraining employees?
Answer:The specific skills needed vary by industry, but in general,comes to the fore digital, analytical and “human” skills. In the area ofhard skillstoday almost every business needs at least a basicdigital literacyfor all workers – understanding of data, orientation in tools such as data analysis, automation, artificial intelligence. Hand in hand with that goesability to work with technologiesand constantly learn about them (e.g. working with new software, cyber security, digital marketing). But equally important aresoft skills, which machines cannot replace. The World Economic Forum warns that among the most in-demand skills in the coming years will becritical and analytical thinking, the ability to solve complex problems and actively learn, as well asdurability, adaptability and flexibilityin access to workweforum.org. The pandemic has accelerated the trend of remote work, which is why it is increasingly valuableability to effectively communicate and lead teams virtually(e.g. conduct meetings via video conferences, keep people engaged in the home office, build trust remotely). Another critical skill isinterdepartmental cooperation– know how to work in multi-disciplinary teams, where knowledge from different fields is connected. Businesses are also paying more and more attention tocreativity and innovative thinkingin employees, because in the era of AI, human creativity and ideas will be the source of competitive advantage. In summary, the development should coverdigital intelligence(data, technology) andemotional and social intelligence(leadership, communication, teamwork). A proven approach is to combine both – for example, train employees in the use of new data tools, and at the same time train them in “soft skills” so that they can correctly interpret the results, present them and collaborate in their use.

Question 3: How to prevent the loss of know-how when experienced employees retire?
Answer:The departure of long-term experts can weaken the company if it does not take care ofin time passing on their tacit knowledge to the younger generation. One of the most effective tools ismentoring program– to match a senior employee who is about to leave (or downsize) with a prospective junior colleague. An experienced mentor can practically teach his successor, pass on best practices, company “history” and personal know-how, which cannot be found in a manual. Younger employees value this form of learning – a survey showed that83% of Gen Zers consider mentoring “essential” to their career growth benefitnews.com. In addition to mentoring, it is advisable to establish processes forknowledge capture: for example, after important projects, do the so-calledlessons learnedworkshops where experienced team members write recommendations for successors. Companies are also building internal databases or wikis, where seniors can record their knowledge, instructions and tips for others. Some organizations offer departing experts the opportunity to staypart-time or consultingafter retirement – for example, to coach a follower for a few hours a month, or to conduct occasional training for the team. In this way, the company will extend its access to their knowledge until the new generation has fully matured. It is also important to supportthe culture of intergenerational cooperation– so that knowledge sharing is not perceived as a threat (e.g. elders should not be afraid that they will lose value by passing on know-how, and younger people should be open to learning from elders). Sometimeswill also help reverse mentoring– a junior colleague teaches a veteran, for example, digital skills and in turn learns about business from his experience. The key is for management to recognize the value that long-term employees have in them and to plan in advance how not to lose it when an individual leaves. In this way, the company will ensure that the know-how built up over the years will remain in the organization and it will be possible to build on it further.

Sources:World Economic Forum; Horton International; iCIMS (LinkedIn Workplace Learning Report); Harvard Business Review; California Management Review; Employee Benefit News; Center for Creative Leadership; Robert Half.