I heard a story from a wealth advisor who, up until recently, had a career at a single regional bank spanning almost 30 years. He was one of the best of the best in the company, adding millions of dollars in managed assets to his employer. He was consistent. Loyal. Personable. Well-respected.
And then he was forced to retire—the company was going to let someone go. He decided to take an early retirement to help save someone else’s job.
He had a wealth of experience. Clients trusted him, and many followed when the company pushed him out.
I can’t help but think about the advisors left behind. Someone with that much skill and experience—that strength of reputation and leadership—is an undeniable asset. And suddenly, gone. Who could possibly fill his shoes?
I see this story as a reflection of many problems in today’s work culture, but I want to focus on one in particular: the leadership gap.
What the Leadership Gap Really Looks Like
The leadership gap is more than just a lack of leadership in a company. If anything, there are leaders there. But there’s a lack of necessary foresight to leverage those leaders to train up the next generation.
Right now, we’re seeing:
Companies are squashing their hierarchies in the name of efficiency.
Pushing out loyal Boomers with careers spanning decades.
Reliance on new hires to fill leadership roles.
Millennials and Gen Z who are highly technically skilled but not pushed towards leadership growth.
A focus on volume of work done, but neglecting the vision behind it.
All this is leading to a crisis in businesses everywhere. We’re just not planning for what—and who—comes next.
5 Ways We Can Seal the Leadership Gap
#1 – Give early, real responsibility.
Instead of waiting until someone is “ready,” give them manageable projects where they can lead a team, manage a budget, or oversee an initiative. These don’t have to be high stakes. You can oversee them (without micromanaging!). What’s important is that you give the opportunity to lead and take ownership. It won’t happen on its own.
#2 – Create structured mentorship programs.
One of the best things you can do is pair senior leadership with entry- and mid-level employees with leadership potential. Not only can your old guard impart their wisdom to the next generation, but the new kids on the block can help with learning new technologies and industry skills.
This won’t happen unless you implement the system and structure. These sorts of personal and leadership development initiatives aren’t a distraction from “more important” things. They are the important thing.
#3 – Prioritize soft skills alongside technical skills.
Technical expertise only goes so far. Soft skills nurture leadership potential, and it’s our job to train these skills just as we would any other. Leadership demands strong emotional intelligence, adaptability, and resilience.
As a leader, work to demonstrate and teach conflict resolution alongside communication skills. You want to equip your team to be as effective as possible, and that means handling the “people” part of the job with finesse.
You can do this overtly by spelling out how to handle these more nuanced interpersonal situations, explaining why you approached a problem the way you did, and by modeling the behavior and soft skills you want your team to share.
#4 – Expose them to strategic thinking.
Invite junior and mid-level employees whom you believe have leadership potential to upper-level meetings and planning sessions. That peak behind the curtain helps them see the thought process behind every decision your leadership team makes—how they weigh tough decisions, manage resources, juggle priorities, and move ahead with a clear vision.
I need to stress this—you can’t expect leaders to be born passively. It’s something that must be cultivated intentionally.
#5 – Teach decision-making, not just task execution.
For most young professionals, doing the work is not the issue. They know how to do the job. But they often haven’t been given the opportunity to practice making high-impact decisions.
Walk them through your thought process so they can learn the reasoning behind your choices. As leaders, we need to root out the “not my circus, not my monkeys” mentality—instead, encouraging new leaders to step up and steer the ship.
No one is a natural-born leader.
The leadership gap is closed not by waiting for someone to be “ready,” but by actively developing leaders in the trenches now. It never happens on its own, but rather when we give them the skills, mentorship, and opportunities they need to grow into the role.
What’s the best opportunity you had to grow into your current leadership role? Let me know in the comments.