First-time managers play a crucial role in today’s fast-paced workplace. They are responsible for driving team success, nurturing talent and ensuring the organization’s goals are achieved. Despite the importance of this role, companies face significant challenges in filling the pipeline of new managers who are ready to step up and lead.
As demand for first-time managers grows—with an expected increase of over 500,000 roles in the next decade—organizations must rethink their strategies for preparing and promoting leadership talent. The urgency is further highlighted by the fact that job postings for first-time managers grew by 54% between 2020 and 2022. Nearly 2.5 million first-time management positions are advertised annually, while 3.5 million people are currently in these roles. Yet, there is a silver lining: first-time managers are 30% more likely to stay with their organization, making investments in their development a wise long-term strategy.1
Why Filling New Manager Pipelines Is So Challenging
Several factors contribute to the difficulty of building a robust pipeline of first-time managers:
- Rising Demand for Management Talent
As organizations expand and startups proliferate, demand is outstripping the supply of employees who are truly ready to take on management responsibilities.
- High Turnover Rates Cause Disruption
When managers leave, it disrupts teams and puts companies in a reactive hiring mode rather than allowing for proactive succession planning. This often results in rushed promotions or inadequate preparation, perpetuating a cycle of turnover.
- Skills Gap in Transitioning to Leadership
While first-time managers continue to use many of the technical skills developed in their previous roles, they must also acquire new competencies such as people management, strategic thinking, and effective decision-making. Many employees are unprepared for these new demands due to a lack of formal training in leadership skills.
- Reluctance to Invest in Management Development
Some organizations hesitate to invest in comprehensive management training, viewing it as a cost rather than a critical investment. In high-turnover environments, this lack of investment perpetuates a cycle where new managers are not properly prepared, creating instability within teams.
- Bias in Identifying Potential Leaders
Employees who do not fit traditional molds may be overlooked, even if they possess the skills and qualities needed for management. Broadening the criteria for identifying potential managers can help uncover a diverse pool of candidates, many of whom can bring unique perspectives and skills to the role.
Unlocking the Potential: Strategies to Strengthen New Manager Pipelines
Despite the challenges, companies can adopt strategies to overcome the difficulties and successfully fill their new manager pipelines:
- Focus on Skill Alignment Rather Than Traditional Experience
Instead of solely considering those with prior management experience, companies can identify workers who have developed skills aligned with management tasks, such as problem-solving, communication, and teamwork. Many of these skills are demonstrated in individual contributor roles and can translate well into leadership responsibilities.
- Invest in Scalable Digital Training Programs
To prepare employees for management positions, organizations should invest in digital learning programs that offer scalable leadership development. The digital format allows for customization to meet the specific needs of an organization, ensuring that content is relevant and applicable. This approach enables companies to develop many employees into capable managers, helping to close the skills gap.
- Implement Succession Planning and Development Initiatives
Proactive succession planning can help build a strong pipeline by identifying and developing high-potential employees early on. Experiences such as stretch assignments, mentorship, and leadership training prepares them for future management roles. This approach ensures that companies have a steady stream of capable managers ready to step up when vacancies arise, instead of being forced to react to sudden departures.
- Make Management Roles Attractive to Today’s Workforce
Organizations can redefine management roles to appeal to modern workers by emphasizing growth opportunities, impact, and the chance to lead with purpose. By highlighting how management positions allow employees to leverage the technical skills they’ve already mastered while taking on new oversight and leadership responsibilities, companies can make these roles more attractive.
- Embrace Inclusive Talent Practices
To expand the pool of potential managers, organizations should adopt data-driven methods to identify diverse candidates, including those without traditional career paths or college degrees. Many workers have developed valuable skills through experience rather than formal education, making them strong candidates for management roles.
Building a strong pipeline of new managers is a pressing challenge, as the demand for leadership talent continues to grow and turnover remains high. Companies can address these challenges by expanding criteria for selecting potential managers, investing in scalable digital training programs, and implementing proactive succession planning.
Promoting first-time managers is not only about filling a vacancy but also about improving organizational stability—new managers are 30% more likely to remain with their organization. By investing in the development of potential leaders and equipping them with the skills they need to succeed, companies can tap into a diverse pool of over 10 million potential first-time managers. These efforts lay the groundwork for stronger, more resilient leadership across the organization, driving long-term growth and success.
1 “Managing Up: Management Education as a Ladder to Mobility” Burning Glass Institute and UVA Darden Executive Education & Lifelong Learning. 2024.
Lisa Cannell (MBA ’17), Senior Managing Director for Client Solutions, has an extensive background in HR and client development. She works closely with organizations and their learning and development teams to address their talent and organizational needs through diagnoses of the leadership development and capability building requirements needed to retain top talent, grow to the next level and successfully manage change.
