Support leaders or lose them, report warns

15 October 2009 8:59am

HR managers must have leadership development programs in place for employees or face the risk of losing them when the economy recovers, a new report warns.

The Hudson survey of 3,395 managers and 1,535 HR practitioners says the economic downturn has placed significant pressure on leaders, more than half of whom (52 per cent) have little or no experience of managing through a downturn.

"The majority of managers have been forced to implement unpopular cost cutting measures, while coping with stressed employees and delivering more with less - all for the first time in their careers."

The report says the economic recovery is likely to be slow and gradual, and will continue to place pressure on leaders to achieve more with less.

It warns that when the employment market improves, leaders who haven't been adequately supported "might well be tempted to jump ship".

Leaders need training tailored to economic downturn

Communication skills are the most important competency for leaders during a downturn, the report says, followed by strategic focus, flexibility, commercial acumen and honesty/transparency.

While survey responses indicated that four in five organisations offer their management teams general leadership training, just under half (48%) of this training was tailored to the current economic climate.

The report says leaders who have the competencies to lead through a downturn and into recovery will have a greater sense of control over their roles and ownership of the organisation they work for. This will enable them to better support and reassure their teams.

Promote self-awareness among leaders

The report says the first step in supporting leaders is to assess their current level of capability, using:

360-degree surveys, where leaders' teams and other stakeholders complete an assessment, identifying the leader's level of ability in each of the core leadership competencies;

Self assessment, where leaders assess their own strengths, using tools such as questionnaires and psychometric testing; and

Development centres, which provide an objective assessment of leaders' competencies in a simulated environment, using practical exercises that are designed to specifically measure leaders' competencies.

Once the assessment phase has been completed, the results should be shared with leaders, to aid their awareness of the areas where they need to develop.

Provide a road map to improve leaders' performance

The report recommends formulating a development plan for leaders to improve their performance.

Managers need the support of an experienced leadership coach, the report adds, to help them set goals and provide the advice they need to improve their skills.

"Investing in development will equip leaders to guide their organisations out of the downturn and take advantage of the opportunities that will undoubtedly be presented by the recovery," the report concludes.

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