The path to senior leadership

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The path to senior leadership June 2014 A Badenoch & Clark whitepaper

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Page 2 0f 16 The path to senior leadership / A Badenoch & Clark whitepaper

Contents

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Overview

Differences between the sectors

UK professionals left to flounder

Leadership experience essential to progression

Women believe men have greater access to support

34-49 year olds frustrated by lack of support

14 Creating future leaders

16 Contact us

The path the senior leadership / A Badenoch & Clark whitepaper Page 3 0f 16

OverviewIn today’s globally competitive economy, the value of nurturing high performers has never been greater. With the war for talent at an all time high, savvy business leaders are saving themselves valuable time, money and energy by focusing on the development of internal talent, rather than relying on recruitment alone.

By carving a clear career path for employees with the potential to progress, organisations are effectively securing their own futures. But how many employers are actually providing the sort of support, guidance and encouragement needed by professionals on their journey to the top?

And what’s standing in the way of these promising employees when it comes to furthering their careers?

About the research: In May 2014 Badenoch and Clark commissioned independent research of over 1,000 professionals in middle management and above to find out what they saw as the key limitations to progressing to senior leadership. The results show that while many have their sights set on a career at the top, businesses are largely failing to facilitate their development.


UK professionals left to flounderOur research showed that almost half (47%) of professionals believe those with the potential to progress are not adequately supported to make the transition to senior leadership within their organisation ― and it’s having a significant effect on their confidence. In fact, nearly two-fifths (38%) of those in middle and senior management cited professional anxiety as a barrier to career progression.

Professional confidenceUncertainty and apprehension in the workplace is diverting potential leaders off the path to the boardroom, and employers need to do more to improve professional confidence if they’re to secure the necessary skills for the future of their organisations.

As well as a lack of support from employers, nearly a quarter of the professionals we surveyed said there were no measures in place within their organisations to help them progress. Structural measures — such as mentoring and development programmes — play a major part in nurturing senior leaders, and this level of professional encouragement and support is vital to ensure employees feel championed by their own company. So what do employees perceive to be the chief limitations when it comes to progressing to senior leadership?

Top 10 limitations to senior leadershipOur research identified a number of factors that professionals felt limited advancement to senior leadership roles:

❶ Lack of leadership experience

❷ Personal anxiety about making the transition

❸ Lack of industry experience

❹ Unwillingness to travel

❺ Internal relationships

❻ Unwillingness to relocate

❼ Limited network/contacts

❽ Family commitments

❾ Age

❿ Organisational structure


The employees in our survey identified the following criteria as essential for those wishing to progress to senior management:

❶ Leadership experience

❷ Effective management style

❸ Industry knowledge

❹ Strategic ability

❺ Effective leadership style

With lack of leadership experience causing the most concern, it’s hardy surprising that professionals want to see more mentoring, development programmes, leadership training, and opportunities to tackle new challenges within their organisation. But what does it take to be a senior leader?

However, of those at middle management level, only a quarter expect to progress to a senior leadership position within their current organisation; over a third expect to move to another company to secure a top spot; 41% have no desire to advance to senior leadership, and of those who do want to progress, 79% think the support will need to come from themselves rather than their current employer.

If more than a third of UK professionals believe that the only way to further their careers is to abandon ship for a new employer, many organisations are going to suffer a brain drain — with top talent leaving for companies with clear development plans for their future leaders.

of professionals surveyed think the support will need to come from themselves rather than their current employer.

79%of professionals surveyed in middle management cited professional anxiety as a barrier to career progression.

38%of professionals surveyed believe those with the potential to progress are not adequately supported to make the transition to senior leadership.

47%


Differences between the sectorsThere were noticeable differences between the sectors: our research showed that the public sector is more likely to have a large senior leadership team and a high amount of bureaucracy and hierarchy. It’s also seen to be more controlling and restrictive — a characteristic that could negatively impact talent attraction.

Public sectorThe public sector is however more likely to have mentoring, development programmes and leadership training in place, so for those individuals who are earmarked for the top, structural measures are at hand. Within this sector, leadership experience is thought to be the most important attribute for senior leaders, with a lack of leadership experience emerging as the chief limitation to progression to the top.

Private sectorIn the private sector, companies are more likely to be entrepreneurial with a flat structure and a small leadership team. They’re also more likely to have regular salary reviews, offer the chance to showcase abilities, and provide the opportunity to take on new challenges. In this sector, industry experience is thought to be the most important attribute for senior leaders, but echoing the feelings of the public sector, lack of leadership experience still emerges as the chief limitation for progression to the top.

Our survey told us that industry knowledge is essential for private sector, while public champions experience.


Leadership experience

A focus on building leadership experience can help organisations to tap into their talent pipeline and create the leaders of the future.

The private sector has already taken some key learns from the public sector ― including the implementation of training programmes ― but employers across the board could be doing much more to facilitate internal development.

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Leadership experience essential to progression Small companies of up to 49 employees reflect the private sector trend of being flat, entrepreneurial, and having a small leadership team. They’re less likely to be diverse, bureaucratic or hierarchical, controlling or restrictive, or internally competitive or aggressive. But with over a third (35%) of professionals reporting a lack of measures for helping workers to progress to higher ranks, and only 19% of employees expecting to progress within their current company, small businesses may struggle to compete with larger competitors.

Small companiesLeadership experience is cited as both the key attribute of senior leaders in small companies and the chief limitation; employers within businesses of this size then must focus on facilitating learning from an early stage — otherwise, they risk losing their rising stars to those with clear plans in place.

Large companies In large companies of over 250 employees, only 25% of workers expect to progress within their current organisation ― and in an echo of the smallest companies, leadership experience is cited as both the key attribute and the chief limitation. While large organisations are more likely to have mentoring, development programmes, leadership training and opportunities for new challenges, the fact that they also have larger leadership teams means they should have a much higher percentage of employees expecting to progress where they are, rather than looking to other employers to help them realise their potential.

Mid-sized companies Mid-sized companies with 49-249 employees tend to be more diverse, but also more bureaucratic, hierarchical, controlling and restrictive — largely echoing the public sector. But they also mirror larger private sector trends in their tendency to provide greater opportunities for new challenges, regular salary reviews, and the opportunity to showcase abilities. The top attribute for leaders in companies of this size is thought to be management style, with leadership experience once again emerging as the chief limitation for career progression. It is however better news for these employers, with 29% of their workers expecting to advance within their current company.


reported a lack of measures for helping workers to progress to higher ranks.

35% of professionals


Generation Y emerged as the most ambitious age group, with 80% expressing a desire to progress to senior or CEO level positions, compared to 60% of 34-39 year olds and 40% of 50-68 year olds.

Perhaps unsurprisingly, it’s Generation Y who receives the greatest amount of mentoring, development and leadership training, but with chief demand coming from 34-49 year olds, it seems that whilst workers are enjoying the support of their employers at the start of their careers, the development of more experienced talent is getting overlooked. Giving

employees the chance to learn from their peers is essential for building leadership confidence (and competence), which is where the importance of mentoring comes in. Being able to learn from industry professionals who are already at an advanced stage in their careers is a cost-effective method of internal development, and one that can be adapted and tailored to individual needs.

It’s essential that today’s employers cater for every age group within their reach, and devise the most appropriate training programmes for every group. It’s also important that opportunities are equally available to all.

Generation Y are the most ambitious

Gen X frustrated by lack of support Our research showed a peak in requests for structural support measures from professionals in the 34-49 age bracket — suggesting that workers of this age feel ready for progression, but lack the necessary support; resulting in frustration, and leaving them open to rival offers. This is a crucial age for making the transition to senior leadership, and employers need to devote both time and resources to facilitating the development of those who are ready for the top.

Generation and ambition

60%

80%

40%

Generation Y

Generation X

Baby Boomer

Percentage of professionals surveyed who have a desire to progress to senior or CEO level positions.


It’s essential that today’s employers cater for every age group within their reach, and devise the most appropriate training programmes for every group. It’s also important that opportunities are equally available to all.

Generation Y are the most ambitious

Appropriate training


A noticeably higher number of women than men felt there was nothing in place to support you becoming a senior leader. Women also felt they had less chance for salary reviews than their male counterparts felt, and less opportunities to showcase their abilities. This could be down to perception, or attributable to a tendency for men to be more demanding in the workplace, but if employers are to retain promising talent, opportunities must be promoted to everyone, regardless of gender. The way in which opportunities and support are offered may need to be re-considered so that what is on offer appeals to women as much as men.

As the women in our survey actually evinced a greater desire for new challenges than the men, employers should be wary: those who feel ready for the next step in their careers are likely to be left feeling frustrated, and potentially forced to seek opportunities elsewhere. Women were also shown to strongly prize flexible working practices, but an overwhelming 75% of organisations fail

to offer it; if women need a degree of flexibility in order to manage other commitments alongside their careers, those companies who are unwilling to address existing policies could see themselves missing out on valuable talent.

Employers should also take note of the differences in attitudes to leadership displayed by male and female professionals: our research suggests that women value management style over leadership experience, and place importance on personality and team fit, while men believe that to become an effective leader, industry knowledge, strategic ability, financial acumen, market awareness and commercialism is essential.

Leadership training should be tailored to individual approach, whilst also educating up and coming professionals about what’s expected of them at the top.

Our research suggests that women value management style over leadership experience, and place importance on personality and team fit.

Men believe that to become an effective leader, industry knowledge, strategic ability, financial acumen, market awareness and commercialism is essential.

Woman and senior leadership

Women believe men have greater access to support Despite efforts to increase the number of women on company boards, our research found that there is a real difference in perception between men and women around the level of support that is in place to become a senior leader.


Woman prize flexible working yet our research has found that 75% of organisations fail to offer it.

Woman and flexible working


Creating future leadersPrevious research by Badenoch & Clark found that over a quarter of Generation Y workers would turn down a job without personal development opportunities, and just under a third would leave a role without a clear career path. Add to that the frustration felt by older professionals at a crucial juncture in their careers and the problem is clear: in a market of intense competition — for both business and talent — employers are gambling not only with employee retention, but the future of their organisations.

Give your future leaders exposure to the topWith professional anxiety and concerns around lack of leadership experience impacting not only confidence but career ambitions, today’s business leaders have a crucial role to play in paving the way for progression to the top. Once a path has been carved for promising professionals — constituted of clear expectations, senior support and practical training programmes — this anxiety is likely to diminish; replaced by ambition, determination, and understanding of their role as business leaders of the future.

Introduce career development at an early stage

Set up mentoring opportunities that make people feel valued

Tailor training and development opportunities to leadership skills

Choose projects based on development needs

Involve future leaders in the decision-making process

With professional anxiety and concerns around lack of leadership experience impacting not only confidence but career ambitions, today’s business leaders have a crucial role to play in paving the way for progression to the top. Once a path has been carved for promising professionals — constituted of clear expectations, senior support and practical training programmes — this anxiety is likely to diminish; replaced by ambition, determination, and understanding of their role as business leaders of the future.

If one of your employees is showing leadership potential, their talent needs to be nurtured with the encouragement and structural support measures that will allow them to flourish and excel; this approach is also likely to keep top performers within your fold, rather than jumping ship for brighter opportunities with rival companies.


“This survey sheds new light on the factors that impact career progression to senior leadership. With little signposting and advice

provided by the employer, doubts about career development are stopping top talent from getting ahead. This is a loss for both the candidate and the company. If companies wish to retain their best performers, we need to see greater investment in supportive mechanisms and formal structures. These can range from more structured approaches such as training programmes, to mentoring and other softer forms of supporting top talent.”

Nicola Linkleter, Managing Director of Badenoch & Clark

www.badenochandclark.com

© Badenoch & Clark 2014. All right reserved. The information contained in this publication is intended for general purposes or guidance only. It does not purport to constitute professional advice. Badenoch & Clark accepts no liability for the accuracy of the contents or any opinions expressed herein.

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