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.



By Jessica Jaithoo • October 23, 2026
Why frontline leadership matters more than ever As organizations across Alberta navigate economic uncertainty, workforce pressures, and rapid technological change, one question continues to surface: what separates organizations that thrive from those that struggle to adapt? At Great Place To Work®, their research points to a consistent answer: leadership. Not just executive leadership, but leadership at every level of the organization. While senior leaders set vision and direction, frontline leaders shape the day-to-day employee experience that determines whether people trust, engage, innovate, and embrace change. In many ways, the future of work will be defined not by technology, but by the quality of leadership that guides people through it. Alison Grenier, Head of Culture and Research for Great Place to Work, has been studying the Best Workplaces in Canada for the past 15 years. She sat down with CPHR Alberta to discuss the importance of frontline leaders in shaping workplace culture. “In many ways, the future of work will be defined not by technology, but by the quality of leadership that guides people through it.” Alison Grenier, Head of Culture and Research, Great Place To Work Canada Q: Why is leadership such an important topic right now? Because organizations are operating in an environment of constant change. Employees are being asked to adapt to new business priorities, new ways of working, and increasingly, new technologies. In times like these, people look to their leaders for clarity, support, and confidence. Strong leadership helps employees navigate uncertainty and stay focused on what matters most. Q: What connection do you see between leadership and workplace culture? Culture is often thought of as something abstract, but employees experience culture through everyday interactions with their leaders. How leaders communicate, listen, recognize effort, involve people in decisions, and demonstrate care all shape the employee experience. Over time, those experiences become culture. Q: Why are frontline leaders especially important? Frontline leaders are the people employees interact with most frequently. They sit at the intersection of organizational strategy and everyday work. They explain change, answer questions, remove barriers, coach employees, and reinforce purpose. Research consistently shows that employees are more likely to stay, contribute ideas, and give extra effort when they feel supported by their direct leader. Yet frontline managers are often the most overlooked group when it comes to development and support. Q: What challenges are frontline employees facing today? Frontline employees continue to experience significant pressure. Research points to high levels of burnout, concerns about workload, staffing shortages, and a desire for greater flexibility and support. Many also report feeling disconnected from decision-making and organizational priorities. Q: What do employees need most from leaders right now? They need leaders who listen, communicate clearly, and help them understand how their work contributes to a larger purpose. Employees want transparency when circumstances change. They want to feel heard when they raise concerns. They want recognition when they make extra effort. Most importantly, they want leaders who genuinely care about their success and well-being. These may sound like simple behaviours, but they have a profound impact on trust, engagement, and retention. Q: How does artificial intelligence fit into this conversation? AI is one of the most significant workplace changes many organizations have faced in years, but successful AI adoption is less about technology and more about leadership. Organizations that treat AI as a technology project will struggle, while those that treat AI as a people and leadership opportunity are more likely to succeed. Even employees who may never use AI directly in their roles will likely be affected by changes in workflows, processes, customer expectations, or business operations. When employees feel excluded from conversations about the future, uncertainty tends to grow. Bringing everyone into the discussion helps build understanding, trust, and readiness for change. Q: What enables organizations to adapt more effectively to change? Trust. Our research consistently finds that employees in high-trust workplaces are more willing to adapt, learn, collaborate, and embrace change. When trust is strong, employees are more likely to assume positive intent, contribute ideas, and support organizational priorities. Q: What role can HR professionals play in strengthening leadership? HR professionals play a critical role by helping leaders translate organizational goals into meaningful employee experiences. That includes providing leaders with the tools, skills, and insights they need to communicate effectively, listen actively, recognize contributions, and build trust. The goal is not for HR to "own" culture, but to enable leaders to create the conditions where great culture can thrive. Q: What message would you leave with Alberta leaders? Never underestimate the impact you have on the people around you. As organizations prepare for the future of work, leadership remains one of the most powerful competitive advantages available. Leadership has always mattered. In an era of constant change, it matters more than ever.
By Jessica Jaithoo • October 19, 2026
Author: Taia Northrup , 2026 Social Media Committee Volunteer Halloween is the season for haunted houses and stories that send shivers down our spines. But for HR professionals, some of the scariest situations don’t involve ghosts or goblins. They happen right within the workplace. Behind every employee experience is a workplace culture shaped by communication, leadership, expectations, and trust. Research suggests that factors such as unclear roles, unmanaged workplace stress, and limited opportunities for employees to speak up can have meaningful consequences for both employees and organizations (Hassan, 2013; Government of Canada, 2016; CIPD, 2024) This Halloween, let’s shine a light on the spooky side of HR: the workplace realities we do not always talk about. 1. The ghost of communication past Poor communication can haunt an organization long after a message is missed. Important updates get lost; expectations are assumed rather than explained, and employees are left piecing information together on their own. This results in confusion, frustration, duplicated work, and a growing lack of trust. The reality is that communication isn’t just about sending a message. It’s about making sure the right people receive it, understand it, and know what to do with it. Two-way communication also gives employees a way to raise concerns and contribute ideas, helping organizations better understand the experiences of their workforce (CIPD, 2024) 2. The never-ending zombie job description Responsibilities keep growing. Projects are added. Employees become unofficial go-to person for tasks that don’t seem to belong to anyone else. Unclear roles and responsibilities can leave employees overwhelmed, leaders frustrated, and teams working in silos. Research by Hassan (2013), examining 1,699 employees across 45 government agency office, found that great role clarity was associated with higher job satisfaction and lower turnover rates. When accountability is missing, tasks fall through the cracks, or multiple people unknowingly do the same work. Employees need clarity about their roles, decision-making authority, priorities, and how their work connects to the bigger picture. The Government of Canada also identifies clearly defined duties and responsibilities as one of the practices that supports psychological health in the workplace (Government of Canada, 2016). A job description shouldn’t be a document that comes back to life once a year for performance reviews. Expectations should evolve alongside the role. 3. The turnover vampire One employee leaves. Then another. Before long, the team is spending more time recruiting, onboarding, and training than getting work done. High turnover can drain an organization of institutional knowledge, team stability, and employee morale. And when remaining employees absorb the workload, burnout can quickly follow. But here’s the frightening part: turnover is often treated as a recruitment problem when the underlying causes may have little to do with recruitment. Employees may be leaving because of poor leadership, limited development opportunities, unmanageable workloads, lack of recognition, or a lack of clarity about what is expected of them. Research on role clarification has also identified a relationship between clearer roles, job satisfaction, and lower turnover (Hassan, 2013). 4. The haunted house of unspoken expectations Employees are expected to know what success looks like. Managers assume their teams understand the priorities. Performance reviews arrive, and suddenly, everyone discovers they’re not on the same page. When expectations aren’t clearly communicated, employees may feel blindsided by feedback, while managers become frustrated that work isn’t being completed as expected. The problem isn’t always a lack of effort. Sometimes, it's a lack of clarity. Clear expectations need to be established early and revisited often. Regular check-ins, meaningful feedback, and conversations about priorities can help prevent misunderstandings before they become performance concerns. Role clarity is also associated with greater work satisfaction, reinforcing the value of ensuring employees understand what their roles require (Hassan, 2013). 5. The burnout cauldron The team is short-staffed. Deadlines aren’t moving. Everyone is doing their best to keep things running, and taking a break feels impossible. Overtime, extra responsibilities become the norm, workloads keep increasing, and exhaustion is mistaken for dedication. Burnout rarely appears overnight. It can build gradually as employees operate in survival mode for weeks or months. The World Health Organization describes burnout as an occupational phenomenon resulting from chronic workplace stress that has not been successfully managed (WHO, 2019) Organizations need to look beyond individual coping strategies and examine the workplace conditions contributing to exhaustion. Managing workloads, supporting employee participation, and defining responsibilities are among the practices recommended by the Governent of Canada for psychologically healthy workplaces (Government of Canada, 2016) Sustainable performance requires realistic expectations, supportive leadership, and the ability to raise concerns without fear. 6. The employee engagement masquerade The survey results look good. The engagement event was a success. Everyone smiled at the team photo. But behind the scenes, employees may feel disconnected, unheard, or reluctant to speak honestly about their experiences. Social events and recognition programs can contribute to a positive employee experience. However, they cannot replace trust, fir treatment, meaningful work, and leaders who listen and follow through. Asking employees feedback, listening without becoming defensive, and communicating what happens next. When people see that their input leads to meaningful action, engagement becomes more than a survey. Research highlighted by the Chartered Institute of Personnel and Development (CIPD, 2024) suggests that employee voice can strengthen the long term benefits of effective management practices. Bringing the shadows into the light The most challenging workplace issues aren’t always dramatic. Often, they’re the small, recurring problems that go unaddressed until they become much harder to ignore. A missed conversation, an unclear responsibility, another resignation, a team that has stopped speaking up. These are reminders that a healthy workplace doesn’t happen by accident. It takes intentional communication, clear expectations, supportive leadership, and a willingness to address uncomfortable issues before they grow. This Halloween, let’s look beyond the policies and processes and pay attention to the everyday experiences shaping our workplaces.
October 9, 2026
The Board of Directors continues to provide oversight of CPHR Alberta’s 2026 – 2028 Strategic Plan. At its September meeting, the Board reviewed progress across the organization’s three strategic priorities and its continued focus on strong governance and financial stewardship. Influence and Visibility of the HR Profession CPHR Alberta continues to elevate the visibility and credibility of the CPHR designation with employers, policymakers, academic institutions and the broader business community. The Board remains focused on advancing recognition of the CPHR designation as the benchmark for excellence in HR and strengthening the position of CPHRs as trusted professionals and organizational leaders. Future-Ready HR Community CPHR Alberta continues to invest in programming that prepares members for the evolving world of work, with a focus on relevant and future-focused professional development, including emerging areas such as AI, HR law and executive leadership development. The 2026 Annual Conference continued to strengthen its position as a key gathering for Alberta’s HR community. One-third of attendees were at the executive level and nearly half attended for the first time, demonstrating both strong senior-level engagement and the ability to reach new audiences. The Board continues to support investment in learning, leadership development and connection that helps build a strong, future-ready HR community. Member Engagement and Community Connection Membership continues to grow, reaching 7,266 active members as of June 30, 2026, a 5% increase year over year . CPHR Alberta welcomed 407 new members year-to-date, with growth across most membership categories and regions. The Board is encouraged by this continued growth and remains focused on strengthening member engagement, connection and belonging across CPHR Alberta’s jurisdiction. Financial Position and Governance Planning CPHR Alberta continues to maintain a strong financial position and remains aligned with its full-year breakeven objective. The Board continues to monitor emerging economic risks, supported by regular forecasting and appropriate reserves. The Board also continues to strengthen governance, succession planning and Board effectiveness to ensure CPHR Alberta is well positioned to deliver on its strategic priorities. Looking Ahead The Board remains focused on effective oversight of the 2026 – 2028 Strategic Plan and ensuring CPHR Alberta is positioned to deliver meaningful and sustainable value to members. Progress in strengthening the visibility of the profession, preparing the HR community for the future, growing and engaging membership, and maintaining strong organizational stewardship provides a solid foundation for the work ahead. The next Board meeting takes place in November 2026, 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!
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