Organisations are unprepared for the long-term effects of the Great Resignation, according to a new study.
The research carried out by global leadership development consultancy Vaya Group revealed disparities in leadership opportunities between men, women and minority groups that are leaving organisations without diverse leadership pipelines. As the long-term effects of the Great Resignation continue to unfold, companies are challenged with developing a diverse group of leaders who understand how to cultivate a work culture that values and empowers employees.
The problem becomes even more acute as companies scramble to fill job vacancies while simultaneously trying to grow leaders and ensure diversity, equity and inclusion (DE&I). Organisations are not cultivating diverse pipelines, and White men still make up the largest proportion of leadership development participants, just as they did in 2021 when the poll was first conducted.
LACK OF DIVERSE PIPELINES
Organisations primarily rely on subjective measures to select high-potential candidates for leadership development, and they’re heavily focused on employees in their 30s and 40s. This often leaves behind emerging, high potential (HiPo) leaders and allows unconscious manager bias to slip in when making selections.
For example, this year’s survey found that:
- Women are 49% less likely to participate in leadership development programmes than men. Additionally, women are 26% less likely to receive mentorship and coaching opportunities after training and are less likely to receive follow-up support at all.
- Black men are 40% more likely to self-select for leadership opportunities than White men.
- 45% of White men believe there is equal access to training and development, while only 32% of women and 33% of non-White men believe the same.
- Younger employees (those under 50) generally report involvement in more leadership development programmes and receive more peer mentoring.
FAIR LEADERSHIP PROGRAMMES NEEDED
“The Great Resignation has revealed a lot of hard truths about work culture for many organisations. It’s also laid bare the need to invest in a more diverse leadership pipeline. Executives need to think more intentionally about who they want leading tomorrow’s workforce, starting now,” stated Paul Eccher, PhD, Co-founder, President and CEO, Vaya Group. “They can start by establishing objective and fair leadership programmes and prioritising employee development.”
To assess how different industries compare in preparing future leaders and cultivating greater diversity, this year’s Vaya Vision survey interviewed professionals across IT, healthcare, professional services and banking/finance. Healthcare was found to lag far behind others in areas of leadership development, DE&I as well as employee engagement and connection. Meanwhile, growing industries like IT and professional services are investing in these measures.
KEY FINDINGS
Other key findings revealed that:
- Leadership Development: IT has the highest leadership development training participation rate at 61%. The healthcare industry has the lowest with only 40% participating in leadership development programmes.
- Employee Engagement: Healthcare workers feel significantly less engaged and connected to their work compared to other industries. Only 31% feel engaged, compared to 38% in finance, 39% in IT and 42% in professional services.
- DE&I: Banks and financial services are most likely to have a DE&I programme (63%).
“The healthcare industry is still reeling from the impact of Covid, burnout and workforce shortages. Limited resources, budget and talent will further strain the leadership pipeline if they remain unaddressed. Other industries, while also challenged by one of the worst labour shortages in history, are investing in retaining and developing emerging leaders and focusing on diversity. We still have a way to go, but progress is underway,” Eccher continued.
FLEXIBILITY AT WORK
Despite differences in the way men, women and minority groups see their workplaces, employees heartily agree on the kinds of things they want from their organisations, with flexibility being one of the most important. As a whole, employees prioritise their desires very similarly. Workers primarily desire flexible working hours (42%), the ability to work remotely (39%), wellness benefits (39%) and advancement opportunities (34%). Company social functions (both in-person and virtual) landed at the bottom of the list.
“It’s interesting that the number one benefit here – flexibility – isn’t something tangible that organisations have to invest money in. Instead, it’s a cultural perspective that organisations can implement right now, stemming from their leaders and frontline managers,” Eccher concluded. The 2022 Vaya Vision survey explored how companies are approaching leadership development programmes, as well as how businesses are faring with their DE&I initiatives. This year, the poll also looked at differences between key industries. For more information on the Vaya Vision survey, click here.
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