Leadership Risk Isn't Just a C-Suite Concern

Companies that invest in leadership development see real returns. According to Brandon Hall Group, organizations with strong leadership development programs are 1.5 times more likely to be financially high-performing, reinforcing the clear connection between leadership strength and business success (Brandon Hall Group, 2015).


For small to mid-sized businesses, this risk can be especially high. As teams expand and complexity increases, the informal leadership structures that worked early on can start to crack. That’s where proactive leadership development and risk mitigation go hand-in-hand.


The Leadership Gap Is a Hidden Business Risk

According to a recent CPHR Alberta report, talent development and leadership gaps remain one of the top five organizational risks (CPHR Alberta, 2023). The consequences are rarely immediate, but they compound over time:

• Missed growth opportunities

• High-potential employees leaving due to lack of career clarity

• Poor team morale when unprepared managers struggle to lead

• Strategic drift from lack of alignment at the top

A growing company without a leadership pipeline is like a car without a spare tire, it might keep rolling, but one unexpected bump can send the whole operation into a tailspin.


Risk Mitigation Starts with Leadership Insight

The first step in mitigating leadership risk is to move from guesswork to clarity. That means using structured tools like leadership assessments, succession planning frameworks, and targeted coaching to surface the actual capabilities of current and emerging leaders.

In professional services firms, for example, it’s common to see technically strong employees promoted into management roles. While they excel in their areas of expertise, they often lack key leadership capabilities like delegation, feedback, and emotional

intelligence (Gallo, 2016). Without proper development, this can lead to stalled projects, disengaged teams, and higher turnover. Leadership assessments and focused coaching are essential to identify these gaps early and build the skills needed to lead effectively.


Common Leadership Risks in SMBs

Every organization faces different risks, but these are some of the most common leadership vulnerabilities seen in growth-stage companies (SHRM, 2022):

• Lack of succession planning: Only one person knows how to run a key function, creating bottlenecks and burnout.

• Unclear decision-making authority: Teams waste time waiting for approvals or duplicating efforts due to ambiguous roles.

• Promotion without preparation: High performers are promoted into leadership roles without training, leading to micromanagement or misalignment.

• Poor feedback culture: A lack of honest dialogue means small issues snowball into bigger people problems.

• Leadership misfit: A leader’s natural style may clash with the culture or needs of a specific team or situation.

Mitigating these risks requires more than a one-time workshop. It takes intentional development, structured tools, and reinforcement over time (SHRM, 2022).


What Effective Mitigation Looks Like

The most successful companies don’t wait for a leadership crisis to take action. They build leadership strength proactively. Here’s what that looks like:

• Leadership assessments are used during hiring and promotions to identify fit, style, and potential blind spots.

• Customized coaching programs help leaders build the exact skills they need in real time, tied to their actual challenges (International Coaching Federation, 2022).

• Leadership training cohorts (such as PowerUp Leadership’s “Coaching Skills for Managers” or “Authentic Leadership” programs) create a shared foundation across the organization.

• Succession maps identify who is ready or could be ready for key roles in 12–24 months, creating a proactive development plan (SHRM, 2022).


As companies grow, the complexity of people management increases exponentially. Systems, tools, and strategy all matter but none of them work without effective leadership behind them (McKinsey & Company, 2018). Investing in leadership development isn’t a “nice to have” for big companies, it’s a risk management strategy for every business serious about sustainable growth.

Interested in assessing your leadership risk? Visit powerupleadership.ca to explore leadership assessments, coaching programs, and facilitated team workshops tailored to your growth stage.


Layan Jasser

PowerUp Leadership


References:

  1. Brandon Hall Group. (2015). Leadership Development Benchmarking Report.
  2. CPHR Alberta. (2023). HR Trends Report. Retrieved from https://www.cphrab.ca
  3. Gallo, A. (2016). “Why People Really Get Promoted.” Harvard Business Review. https://hbr.org/2016/06/why-people-really-get-promoted
  4. SHRM. (2022). Succession Planning Toolkit. Society for Human Resource Management.
  5. International Coaching Federation. (2022). ICF Global Coaching Study.
  6. McKinsey & Company. (2018). The organization of the future: How to win in a fast-changing environment.



The views and opinions expressed in this blog post belong solely to the original author(s) and do not necessarily represent the views and opinions of CPHR Alberta.



Strong Internal Controls Make Good Business Sense

By Jessica Jaithoo • October 16, 2025
Internal controls are not just a box on a checklist; they are a trust-building tool. When HR leads with transparency, integrity, and strong processes, it sends the message that the organization values trust and accountability. Internal controls can also protect against errors, fraud, and damage to its reputation. Internal controls support fair hiring, secure data management, and consistent documentation, helping HR stay aligned with laws, privacy standards, and compliance expectations. What are internal controls? Internal controls are an organization’s procedures, policies, and processes. They ensure: Compliance with laws, regulations, and policy Accuracy in reporting Overall efficiency and transparency in operations Internal controls include setting out approval authority, role-based system access, audit trails, and segregation of duties. Once your controls are in place, continuous monitoring them further reduce risk by identifying issues early and providing timely feedback on areas where additional training may be needed. Examples of HR internal controls and why an accountant might consider them important Hiring Background checks ensure individuals hired to handle sensitive data don’t have histories of financial misconduct Signed employment agreements support key inputs into the payroll process and can serve as audit documentation Approval workflow for hiring decisions help prevent unauthorized payroll expense s Payroll Segregation of duties between the person hiring and the person setting up payroll can prevent conflicts of interest and fraud Reconciliations of payroll reports with HR records help ensure records match the source data, which supports accurate financial reporting Compensation An assignment of authority for employee events (e.g., salary change, promotions) ensures changes are authorized and reduces the risk of unauthorized payments Supervisor approval on timecards ensures information sent to payroll is accurate Employee records Secure employee records ensure payroll, benefits, and compensation figures used in financial reporting are reliable and safe Tracking changes made to records provides a trail for internal and external auditors Policy and compliance Key company policies requiring an employee’s signature can mitigate financial risks and ensure employees are expected to be aware of an organization’s policies A whistleblower policy provides a mechanism to uncover fraud or misappropriation of an organization’s assets Access and data controls Role-based access to systems limits access to financial systems and reduces the risk of data manipulation Monitoring controls Exception reporting (e.g., duplicate payments) supports quick identification of errors and accuracy of financial reporting Internal HR audits help ensure HR-related financial activities have proper controls and the controls are working as designed By having an HR department that designs and implements internal controls, you are creating a stable system of checks and balances, minimizing risk in more ways than you might expect! About the author: Kristy Mielke CPA, CA fosters the professional growth of Alberta’s 32,000 Chartered Professional Accountants (CPAs) as the Director of Professional Development and Learning at CPA Alberta. She has previously worked in public practice and internal audit, and in addition to being a CPA, she is a Certified Internal Auditor and Certified Fraud Examiner.

An Update from your Board of Directors – September 2025

By Jessica Jaithoo • October 7, 2025
As the governing voice of CPHR Alberta, the Board of Directors meet quarterly to provide oversight and guidance in several key areas. The Board, alongside CPHR Alberta operations, continues to deliver on the association's strategic priorities developed in the 2020 strategic plan. To ensure transparency between our Board of Directors, members and key stakeholders, we are sharing post-meeting messages to inform the steps taken towards advancing our profession and ensuring a financially stable association. The Board of Directors met on September 22, 2025, and the Board’s key messages are as follows: 2026 – 2028 Strategic Plan The Board unanimously approved CPHR Alberta’s new 2026 – 2028 Strategic Plan, which includes a refreshed organizational vision and mission. This forward-looking plan focuses on: Enhancing member value Promoting self-regulation Elevating the visibility of the CPHR designation Fostering a future-ready HR community Implementation begins immediately, with further details to be shared in the coming months. Stay tuned, our new Strategic Plan will be released this fall via email! Board Recruitment The Board has initiated preparations for the 2026 elections. We will once again be seeking CPHR, Retired CPHR, and public members. Additional details will be available in November. CPHR Canada and Collaboration Across Provinces The Board welcomed Philippe de Villers, Chair of CPHR Canada, who presented the national organization’s new strategic plan and the strong collaboration across provinces. Further updates will follow after CPHR Canada’s December Board meeting. You can view the CPHR Canada Strategic Plan here. Financial Management The Board reported that CPHR Alberta remains on track for a balanced 2025 budget, with no current financial risks identified. Engagement Board members will be attending our holiday mingles across the province starting in November. We invite you to join us in celebrating another successful year as a growing HR community. Visit the CPHR Alberta events page and watch your inbox, registration opens soon!  The next Board meeting takes place in November 2025, after which we will again share our key messages. If you have any questions regarding these key messages or the Board of Directors, please contact chair@cphrab.ca . We welcome your feedback!

Supporting Employee Well-Being: How HR Plays a Role in World Mental Health Day

By Jessica Jaithoo • October 7, 2025
Each year on October 10th we commemorate World Mental Health day. A day dedicated to raising awareness, minimize stigma, and promote meaningful connections and conversations about mental well-being. In the modern fast-paced and high-pressured working world, mental health support comes as a crucial element beyond a wellness initiative. It helps to build a more resilient, compassionate, and productive workplace. For HR professionals this day is an important reminder in the role we play in creating a culture that prioritizes empathy, balance, and care. When employees are mentally supported, they are more engaged, collaborative, and better equipped to excel in their roles. Why Mental Well-Being Matters Mental health can affect anyone, regardless of position, age, industry, or experience. The World Health Organization (WHO) reported that in 2019, 970 million people globally battled mental health issues. Anxiety and depression being the most common disorders. The economic costs become substantial, with loss in productivity outstripping direct cost of care. Beyond numbers, the impact can ripple through teams and affect morale. Stress, burnout, and disengagement have real, impactful consequences. Acknowledging mental health and proactively making efforts to take care of employees strengthens companies as a whole. How Can Employers Support Employee Mental Health? While there is no “cookie cutter” formula to promote mental wellness – creating an environment where employees feel seen, heard, and supported is key. Here are a few actions HR can implement to make an impact: Foster Open Conversations Break the silence. Openly encouraging judgement-free conversations around mental health can reduce the stigma around the topic. Practicing empathy and sharing personal experiences can encourage others to also discuss their own experiences and current challenges. Access to Mental Health Resources Ensure employees know where they can turn to for help. Having an Employee Assistance Program (EAP) with access to counseling, therapy, or mental-health hotlines and online support tools can increase awareness and better access to resources that can help employees whom are struggling with their mental health. HR can also work with benefits providers to increase coverage for mental health services or host workshops that focus on stress management and mindfulness as well as recognizing signs of burnout or emotional distress. Creating an environment within the workplace that promotes these habits also is important. Having quiet spaces to decompress, offering mental health days, or acknowledging small employee achievements can go a long way. Work-Life Balance Having a balance between work and personal life is key in maintaining mental health. Encourage employees to set realistic goals and expectations, honour their time off, and model such balanced behaviour themselves. Flexible work schedules, options to work remotely, regular check-ins, and encouraging boundaries can help employees better manage their workload and reduce burnout. Celebrating World Mental Health Day in the workplace  World Mental Health Day is a great opportunity to remind and emphasize an organization’s commitment to well-being. Here are a few ways HR can promote and celebrate the day: Host a wellness workshop: Invite a speaker or mental-health professional to talk about coping strategies or tools for mindfulness Coffee & Connection: Have an informal meeting where employees can share their own ways to de-stress and support one another Share Resources: Share educational material or mental health tips through internal communication channels Closing Thoughts Mental health shouldn’t just be a one-day topic. It’s a constant year-round commitment to help take care of ourselves. On this World Mental Health Day, we should reflect on how to make our own workplaces safer, fostering compassionate and stigma-free spaces for everyone. As HR professionals we are in a key role to lead this change. We can advocate for open dialogue, sharing helpful resources, and nurturing an inclusive culture that values well-being just as much as performance. By working together, united we can create safer workplaces where employees can thrive both professionally and personally. When people feel supported, everyone benefits. Resources: https://www.who.int/health-topics/mental-health#tab=tab_2 About the Author: Rheya is a volunteer with the CPHR Alberta Social Media Committee, a young professional passionate about HR and creativity. With a Diploma and Bachelor's in Business Administration from SAIT, Rheya brings experience in project management, SEO, and social media. When not working, Rheya enjoys crocheting, writing a first novel, and binge-watching Harry Potter movies.
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