Closing the Leadership Gap: Strategies for Future Leaders

McKinsey’s recent Global Leadership Survey found that 70% of organizations recognize a significant gap in leadership development, but only 11% feel adequately equipped to fill this void. 

Traditional incentives drawing employees to leadership positions are increasingly redundant to the modern workforce. When considering their next career move, employees value work-life balance (57%) more than higher pay (55%).

This shift can be partly attributed to the changing attitudes of a younger workforce. Nearly 40% of employees now say they don’t want to become managers, stifling the pipeline of potential leaders.  

Technological disruptions, social and demographic shifts, and geopolitical challenges are redefining the top job, making leadership more complex, and arguably less attractive. In this environment, the question arises: How can today’s top leaders mitigate this looming crisis? 

Redefine leadership for the modern era 

The increasing pace of digitalization, alongside ongoing economic and political uncertainty, demands leaders become more agile, adaptable, and empathetic. The pandemic’s rapid transformation of business models has compelled leaders to shift their focus beyond financial outcomes and adopt a more human-centered approach. 

In this landscape, leaders must move away from traditional, hierarchical leadership styles and embrace more flexible, situational models. Modern leadership is about guiding through influence rather than asserting authority. Leaders who adopt this approach foster a culture of empowerment, encouraging independent thinking, innovation, and ambition among their employees, ultimately nurturing the next generation of leaders. 

Invest in leadership development 

Leadership development programs should now equip future leaders with critical thinking, emotional intelligence and digital acumen, in addition to general business management skills. Many companies are adopting a two-track approach, with general leadership development alongside technical leadership development – ensuring a talent pipeline for critical technical positions. Companies also include rotational assignments and mentoring as ways to develop well-rounded leaders and keep talent interested in the top job.  

Embed purpose in leadership

Purpose-driven companies enjoy higher talent attraction, a more motivated workforce and up to 40% greater workforce retention. Leaders play a critical role in fostering this sense of purpose, creating an environment where employees feel motivated to advance their careers by linking professional success with achieving the company's goals.  

Embedding purpose into leadership succession is essential, from selecting individuals whose professional aspirations align with the company’s purpose to implementing onboarding and mentorship processes that emphasize purpose-driven decision-making. This alignment ensures the continuity of the organization's vision while driving both individual and organizational success. 

Build or join collaborative leadership ecosystems 

Today’s complex challenges require leaders who can collaborate across different sectors and regions. Collaboration enhances innovation and financial success, but also fosters an ecosystem where leaders come together to solve important economic and social problems. 

For example, Unilever’s Future Leaders League encourages emerging leaders from around the world to collaborate on real-world challenges, promoting teamwork across functions and geographies. Working together to solve important challenges inspires employees, motivating them to pursue leadership roles and contribute to meaningful, purpose-driven work. Earlier this year, Danone also revealed that the company is preparing to meet the challenges of tomorrow with DanSkills – a training program aimed at upskilling 100,000 Danone employees for the jobs of the future.  

Close the diversity gap 

One of the most significant barriers to solving the leadership deficit is the persistent diversity gap in senior management. Despite numerous initiatives, only 31% of senior leadership positions globally are held by women, and representation from minority groups remains disproportionately low. 

These diverse groups are untapped talent pools which can be drawn from to enhance an organization’s leadership pipeline while also providing opportunities to underserved groups. Moreover, creating a diverse leadership pipeline sends a powerful message to the broader workforce. When employees see people who look like them or share similar experiences in leadership positions, they are more likely to aspire to and pursue leadership roles themselves. This, in turn, helps to replenish the leadership pipeline, ensuring that future leaders are drawn from the widest possible talent pool. 

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