As the workforce landscape continues to evolve, a recent study by Cangrade highlights a concerning trend: Gen Z and Millennials are excelling in individual performance skills but struggling to develop leadership skills. This gap has significant implications for organizations seeking to identify and develop their next generation of managers.
The Cangrade Workforce Capability Index analyzed 71,747 behavioral job assessments and found that individual performance skills are rising, while leadership skills are falling. Specifically, eight out of nine leadership and teamwork competencies tracked by Cangrade declined year over year, with fostering teamwork declining by 0.65%. Results orientation, on the other hand, posted the largest competency gain, increasing by 1.11%.
This trend raises important questions about how organizations will identify and develop their next generation of managers. It also serves as a warning for organizations that promote based on individual performance alone, as strong results do not reliably translate into delegating, coaching, or building consensus.
Furthermore, the study found that thinking skills are also slipping, with critical thinking, innovation, creative problem-solving, and analytical reasoning all declining. This is concerning, as AI takes on more routine work and raises the value of human judgment.
To address this gap, organizations must prioritize leadership development and provide opportunities for younger generations to develop the skills they need to lead. This may involve providing training and mentorship programs, as well as creating opportunities for younger employees to take on leadership roles.
Ultimately, the leadership gap is a wake-up call for organizations to rethink their approach to leadership development and to prioritize the skills that are essential for success in the modern workplace. By doing so, they can ensure that their next generation of managers is equipped to lead effectively and drive business success.