A retirement crisis is on the horizon in the United States. Baby boomers are retiring in large numbers creating a leadership void for American businesses.
This generation owns 2.34 million small businesses in the United States. They employ more than 25 million people. Stunningly, nearly 60% of these business owners say they do not have a succession or transition plan.
The key to a successful future is hiring and developing talent now. Read on to learn how to develop your company’s next generation of leaders. Explore topics like training and how to identify talent so that your company is left in good hands.
Identifying Talent
Be intentional about developing your employees, especially those who align closest with your organization’s core values
Investing in leadership can be expensive. This is why it is important to identify the right leaders for your company. You need to find and invest in the leaders that align to your organization’s core values.
Employee development is possibly the most important step in your transition plan. The last thing you want is to invest time and money in someone who is not suited to lead or is misaligned to your company’s vision.
There are certain traits that you should focus on in the search for new leaders. Each organization requires different skills but some are universal. Traits that work regardless of the industry include problem-solving, effective communicator, and forward-thinking.
First, evaluate your current workforce to see which existing employees have the traits that your organization needs for long-term sustainability. If your search reveals significant gaps, especially at the executive level, you may need an outside partner who can help you through the hiring process.
It is also important to hire for diversity to bring fresh perspectives to your business. Don’t overlook certain talent pools because the individuals don’t all look and think as you do. That narrows your options for the incredible talent that can take your organization to new levels.
Developing Talent
Once you have identified your future leaders, it is time to develop them. There are many effective ways to develop leaders.
For starters, your company should consider leadership training. Some large organizations bring in leadership experts to train their workforce. This works for companies with many different departments and branches. Another option is an online membership like the one offered by our sister organization, Talent Magnet Institute.
Companies should consider a large range of topics when they offer training. These courses should cover topics including diversity, corporate culture, and conflict management, to name a few.
Many organizations find success by implementing senior leader shadowing programs. Shadowing occurs when future leaders follow department heads or executives around for the day. They observe the organization’s current leadership in action and see how they respond to challenges or opportunities. This helps set the expectation for what being a senior leader truly entails.
Another popular leadership development strategy is to cross-functional training. Many employees become experts in their particular functions. However, they do not have an in-depth understanding of how the rest of the organization functions.
By implementing six-month or one-year rotations, your future leaders can see the big picture. They will learn how the different departments and groups work together to produce an end product or service.
How to Develop the Next Generation of Leaders
It is difficult to express the importance of your succession plan in such a few words. The next generation of leaders ensures that the company you built continues to grow and thrive.
We can help hire an executive that shares your company’s values and possesses the most valuable traits for your industry. If you need help identifying talent for your succession plan, contact us today to schedule a meeting.