Building leadership capacity, which refers to developing leaders who are capable of stepping up to successively, Is one of the top human capital challenges according to the Conference Board of Canada’s third edition of Human Resources Trends and Metrics: HR Measurement Benchmarking.
“Leadership capacity is the top human capital challenge, and this reality has not changed over the past decades,” said Ruth Wright, Director, Leadership and Human Resources Research. “Clearly investments in leadership development are needed, or this will continue to be a long-term problem.”
- Building the leadership pipeline and attracting and retaining a highly skilled workforce are two major HR challenges for Canadian organizations.
- For every two senior executive positions, organizations have only one job-ready or near job-ready successor.
- Social media is increasingly popular for recruiting executive and management-level talent.
The Conference Board of Canada calculates a leadership bench strength ratio. This refers to the number of people ready or nearly ready to assume leadership roles to total positions at the next executive level. In the third edition of the report, the ratio dipped slightly for top executives compared to previous results, posing a significant risk for organizations’ leadership capability and capacity. On the other hand, it appears that investments in high-potential emerging leaders have bolstered bench strength at the second-tier executive level.