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.



Navigating Mental Health in the Workplace Amid Political Uncertainty

By Jessica Jaithoo • October 24, 2025
Author: Calgary Chapter Committee The political climate has become an undeniable force in our lives, influencing not only public discourse but also personal well-being. Whether it is uncertainty surrounding federal policies, international conflicts, or provincial conversations about autonomy, employees are increasingly bringing political anxiety into the workplace. For HR professionals, this growing tension presents unique challenges. The task is not to take sides, but to foster environments where mental health is supported and respectful dialogue can take place. According to the Mental Health Commission of Canada, political anxiety is not a passing trend. It is a persistent stressor with real consequences for how individuals feel and function at work. The Commission highlights how political stress mimics other forms of chronic anxiety, causing sleep disturbances, irritability, and a sense of hopelessness ( MHCC, 2024 ). Constant exposure to polarizing news and divisive topics can leave employees feeling overwhelmed. This emotional fatigue, if left unaddressed, affects focus, performance, and team dynamics. A recent CBC feature underscores the cumulative effect of ongoing political and economic instability. It describes how stress can build over time, eroding emotional resilience and making it harder for people to manage conflict, remain productive, or feel safe expressing themselves ( CBC, 2023 ). These dynamics are not just playing out in public forums; they are showing up in team meetings, informal conversations, and leadership decisions.  HR professionals often find themselves at the intersection of these pressures. They are expected to support others while managing their own reactions to difficult news and evolving policies. They are tasked with implementing wellness strategies, fostering respectful communication, and ensuring compliance with changing legislation. It is a complex and emotionally demanding role. However, there are practical ways HR professionals can help reduce the burden of political anxiety in the workplace. The goal is not to suppress conversation, but to provide thoughtful, respectful guidance and tools that help people navigate uncertainty together. 1. Normalize the Conversation Begin by acknowledging that political stress exists and can impact work. A short message in a wellness newsletter or internal briefing can go a long way. When people feel that their experience is valid, they are more likely to seek help and less likely to internalize stress. Headspace, a leader in workplace wellness, emphasizes that validating emotions is a foundational step in reducing their intensity ( Headspace, 2024 ). 2. Communicate Proactively and Clearly When organizations face potential impacts from political or economic changes, silence can worsen fear. Clear, honest communication builds trust. The Mental Health Commission of Canada cites a national survey in which over half of respondents said that uncertainty was more stressful than bad news itself ( MHCC, 2024 ). Leaders should not speculate, but they should share what is known and outline the steps being taken to support employees. 3. Expand Mental Health Support Ensure that all employees know how to access support, whether through an employee assistance program, mental health benefits, or external community resources. Consider adding or promoting mindfulness programs, mental health first-aid training, or virtual therapy services. Managers in particular need support, as they are often the first people employees turn to during moments of stress. 4. Provide Strategies to Employees for Managing Political Anxiety in the Workplace Limit news exposure to reduce anxiety and protect mental health through digital detoxes. Highlight shared values such as respect, integrity and collaboration to help anchor people – reinforce a strong organizational culture rooted in community. Encourage volunteering and community engagement to restore control and purpose, which are critical to mental well-being. Support ongoing self-care and stress management practices. 5. Reinforce Respectful Conduct and Psychological Safety Review your organization’s code of conduct, respectful workplace policies, and social media guidelines. Ensure that employees understand expectations around respectful communication. Reinforce that differing opinions are welcome, but harassment or retaliation are never acceptable. A psychologically safe workplace benefits everyone by fostering trust, encouraging open communication, and enhancing overall productivity and well-being. 6. Equip Managers with Tools Offer training for people leaders on how to recognize signs of stress and respond with empathy. Provide scripts or toolkits for addressing politically charged questions in a way that keeps conversations respectful and focused on shared purpose. HR professionals do not need to have all the answers to the political questions of the day. Their role is to create structures that protect employee well-being and promote a respectful, inclusive workplace. By encouraging open dialogue, providing clear communication, and expanding access to wellness resources, HR leaders can reduce the impact of political uncertainty and help their teams thrive. As the landscape continues to evolve, it is critical to stay grounded in compassion and clarity. Utilizing the above tools and strategies, HR professionals can be a steady and reassuring presence for their organizations in uncertain times.

Making Waves & Inspiring Connections in Our Mentorship Community of Practice

By Jessica Jaithoo • October 23, 2025
Every mentorship match has the potential to create a ripple – one that extends far beyond the program itself. In our January–June 2025 intake, the CPHR Alberta Mentorship Program received over 225 applications across four unique streams, resulting in 100 mentor-protégé pairings, 17 peer matches, and 7 student group cohorts. This momentum reflects the strength of our HR community and its commitment to shared growth and learning. This year, we invited participants to reflect on three powerful questions: How has this mentorship experience shaped your perspective, and how do you plan to share the wisdom you’ve gained with others in our community? How will participation in the mentorship program create a wave in your career and support the impact you leave on your workplace and broader community? What has been your 'golden nugget' from this experience that will leave a lasting ripple in your career? Their responses were as thoughtful as they were inspiring. Testimonial #1 One of the main benefits of mentoring relationships, aside from the enjoyment of getting to know a colleague, is the ability to consider current situations I am dealing with in light of the other person's experiences. Often, these relationships help me with fresh insights I can use to benefit my team and organization. Over the past few years, I have enjoyed the mentorship program, and have taken the opportunity to encourage others to consider the benefits of the program when chatting at CPHR functions, etc. - Bob Wiebe Testimonial #2 Through participation in the CPHR Alberta Mentorship Program, my sense of belonging in the profession has grown and I have gained a personal sense of connection to the community of practice that spurs me to continue to professionally grow to enable others to find their voice and professional belonging in our community to leave a lasting impact. - Amanda Van Haaften Testimonial #3 My golden nugget from this experience has been the realization of how powerful intentional communication and active listening can be in building trust and relationships, solving problems, and influencing outcomes. This insight has shifted how I approach conversations—whether with colleagues, clients, or leaders. It’s a simple concept, but its impact is lasting. - Archana Malhotra Throughout the intake, our Mentorship Committee stayed meaningfully connected with participants through support groups, live webinars, monthly mentoring e-newsletters, and on-demand micro-sessions – with more to come. Each touchpoint offered space to pause, reflect, and grow – together. Mentorship is never one-directional – it’s a cycle of giving, learning, and leading. We’re thrilled to welcome our new applicants for the upcoming intake and continue building a community rooted in connection and growth. Whether you're a mentor or protégé, you’ll gain valuable insights, meaningful relationships, and the chance to leave a lasting impact.

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.
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