Companies report gaps in internal talent development, succession planning and leadership training.

About 45% of managers say their company isn’t doing enough to cultivate future leaders, with leadership training named as the most neglected initiative for leadership development, according to a new report from TalentLMS.

While 53% of managers said their leaders lead by example, 36% said they’ve witnessed ineffective leadership frequently or consistently. Only 8% said their company’s leadership development initiatives are fully effective.

“The findings of the TalentLMS survey are loud and clear: Leaders need development tools, training and resources that equip them to navigate uncertainty and mentor the next generation,” the report authors wrote. “They need support in refining their adaptability, emotional intelligence and self-awareness. These qualities are make-or-break in today’s leaders.”

In the survey of 600 managers across U.S. industries, gaps emerged in seven areas: leadership training programs, internal talent development, transparent promotions, leadership skill gaps, mentorship from experienced leaders, executive involvement in leadership development and access to external resources and guidance.

Training programs received mixed reviews, with 42% of managers reporting satisfaction with the resources to help them become better leaders and 33% reporting dissatisfaction.

And 43% also said their companies are hiring new managers more often than developing them internally, which can affect employee motivation, TalentLMS said.

Managers pointed to several abilities where their top leaders need improvement, such as embracing feedback, leading by example and demonstrating self-awareness and empathy, the report found.

Leaders also tend to lack communication skills that are deemed vital to their success, according to the Association for Talent Development. Organizations that train their leaders in soft skills such as communication said they do it to ensure strong performance and improve engagement, the report found.

Leader and manager development remains a top priority for HR pros in 2025, according to a Gartner report. Rather than traditional leadership development programs, though, peer learning options — such as networking and team building — may better help with culture and change management, Gartner said.

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