CareerJournal.com provides an interesting look at one Minnesota company in Manager Shortage Spurs Firms to Grow Their Own. Schwan found itself with a significant shortage of leadership talent that is symptomatic of the national hiring landscape.
The tight labor market puts a premium on retaining top talent and raises the cost of outside hires. And leaner corporate structures make it harder for managers to naturally hone their skills through incremental steps up the ladder; companies must instead formally teach them. Demographics play a role, too: The looming retirement of baby boomers is forcing companies to think about replacements.
Schwan has developed an internal solution to combat this problem:
Schwan is one of many U.S. companies paying more attention to grooming their next generation of leaders. Selected employees typically enter multi-year programs involving management classes, coaching sessions and so-called stretch assignments that throw them into big, unfamiliar challenges.
This program is a good idea – usually there isn’t a better return than investing in an employee you know has potential. One of our services is to objectively assess leadership talent for internal promotions. This activity and investment provides a significant return on investment.
“There’s a huge shortage of leaders,” says Ravin Jesuthasan, a managing principal at Towers Perrin, the consulting firm. For smaller companies in a fierce competitive landscape, “growth rates and expectations for growth have ratcheted up, requiring you to be much more diligent and proactive and structured in how you manage the flow of talent.”