More than half of managers are stepping into leadership roles without formal training, leaving many ill-equipped to support employee development despite workers’ growing appetite to learn new skills, according to new research.
The study, from the American Management Association (AMA), found that 51% of managers were promoted into people management without formal leadership training, raising concerns that organisations may be undermining employee development, engagement and long-term business performance.
The findings come as businesses continue investing heavily in learning and development while facing persistent challenges around employee engagement and retention. Previous studies have shown that manager disengagement is increasingly affecting employee engagement worldwide, contributing to falling productivity and significant economic losses.
The latest research suggests organisations may already have what they need to build stronger workforces – employees who are eager to grow– but many managers have not been equipped with the leadership skills required to unlock that potential. The findings also reinforce wider concerns about management quality. One study found that one-third of UK employees have experienced working under a toxic manager. Another more recent research found that nearly 70% of employees continue to report toxic workplace environments, highlighting the significant influence managers have on employees’ day-to-day experiences.
AMA’s white paper (Ambitious Employees. Underprepared Managers. A Growing Organizational Risk), concludes that talent development should no longer sit solely with learning and development teams. Instead, managers need the skills, confidence and support to reinforce learning through everyday leadership.
EMPLOYEES STRUGGLING TO ACCESS SUPPORT
Far from becoming disengaged with career development, employees remain optimistic about their professional futures. According to the research:
- 87% of respondents said they felt somewhat to very confident about their future advancement opportunities.
- Only 30% said they had enough opportunities to develop new skills.
- 66% reported they do not receive frequent support from their manager.
- Only 27% described their manager as highly effective.
The findings reveal a significant disconnect between employee ambition and organisational capability. Rather than lacking motivation, employees appear eager to develop but are struggling to access the coaching, guidance and practical support needed to turn learning into career progression.
Manny Avramidis, President and CEO of the American Management Association, said organisations already have an important advantage. “Organisations have a valuable asset right in front of them: employees who are ready and motivated to grow.”
However, he warned that many managers have not received the preparation necessary to develop others effectively. “The risk is that many managers have not been given the tools or support to turn that motivation into performance. Talent development can’t sit outside the daily work experience. It needs to be reinforced by managers through communication and practical application.”
LEADERSHIP CAPABILITY AND SKILLS
The report suggests many organisations continue promoting high-performing employees into management roles without adequately preparing them for leading people. While technical expertise may earn someone a promotion, managing employees requires an entirely different skill set that includes communication, coaching, emotional intelligence, decision-making and conflict resolution.
The research found that 51% of respondents entered people management positions without formal leadership training, potentially leaving them responsible for developing employees before learning how to lead effectively themselves. The findings build on previous Fair Play Talks highlighting a growing leadership challenge. Earlier research found that 94% of employees believe moral leadership has never been more important, yet only 6% believe CEOs consistently demonstrate it, suggesting organisations continue to face significant leadership capability gaps.
The research also supports earlier evidence that leadership behaviours have a direct impact on workplace culture. Another study found that one in three managers continue to lead through fear, contributing to an estimated $36 billion in lost productivity. Research has also shown that empathetic leadership plays a critical role in creating inclusive workplaces, helping employees feel psychologically safe, respected and able to perform at their best.
Rather than viewing leadership training as an optional investment, the AMA findings suggest organisations should consider it a strategic priority capable of improving employee development, engagement and long-term organisational performance.
LACK OF HUMAN SKILLS
Despite rapid advances in artificial intelligence and workplace technology, respondents identified distinctly human capabilities – not technical expertise – as the skills organisations should prioritise most. The report found the most urgent development needs include:
- Communication
- Leadership
- Decision making
- Collaboration
- Critical thinking
- Prioritisation
- Navigating ambiguity
The findings suggest that while technology continues to transform how work is carried out, organisations will continue to rely on managers who can communicate clearly, coach effectively, build trust and help employees navigate change. The emphasis on communication and leadership also aligns with previous Fair Play Talks reports showing that leadership is central to building inclusive workplaces. Research has highlighted how supportive, well-prepared managers play a vital role in ensuring disabled employees feel valued, included and able to thrive.
PREPARING FIRST-TIME MANAGERS
The AMA report argues that organisations should move beyond treating learning as something that happens only during formal training sessions. Instead, employees are more likely to retain and apply new skills when learning is reinforced through everyday workplace experiences, including:
- Coaching
- Regular feedback
- Stretch assignments
- Peer learning
- Practical application
According to the report, formal learning remains important, but its impact is significantly strengthened when managers actively reinforce new skills through regular conversations and practical workplace experiences. The findings also highlight the importance of preparing first-time managers before promotion. Promoting technically strong employees without leadership development can create inconsistent employee experiences across teams, limiting both employee growth and organisational performance.
LINKING EMPLOYEE POTENTIAL WITH BUSINESS PERFORMANCE
Avramidis said organisations should recognise that managers play a pivotal role in transforming employee ambition into stronger organisational performance. “Managers are often the link between employee potential and organisational performance.”
He added: “When organisations prepare managers to develop people effectively, they strengthen both individual growth and business outcomes. That is when talent becomes a strategic advantage.”
The findings add to a growing body of evidence suggesting leadership quality has become one of the strongest predictors of employee experience. Across research on engagement, inclusion, workplace culture and productivity, the message is increasingly consistent: employees thrive when managers are equipped to lead people, not just processes. For organisations facing skills shortages, rapid technological change and growing competition for talent, the report suggests the greatest opportunity may not be finding more ambitious employees – it may be investing in managers who know how to develop them.
Rather than treating leadership training as an optional benefit, organisations that prepare managers before promotion and support them throughout their leadership journey are likely to be better positioned to improve engagement, retain talent and build more resilient, high-performing workplaces.
GUIDANCE FOR EMPLOYERS
The findings suggest organisations should look beyond expanding learning catalogues and instead focus on creating environments where development becomes part of everyday work. Employers could consider the following:
Prepare managers before promotion
With more than half of managers entering leadership roles without formal training, organisations should equip future managers with coaching, communication and people-management skills before they take responsibility for leading teams. Preparing managers early can help improve employee confidence, reduce workplace conflict and create more consistent leadership experiences across the organisation.
Measure managers on people leadership
Leadership success should extend beyond operational performance. Managers should also be evaluated on employee engagement, coaching, retention, wellbeing and team development to encourage stronger people leadership alongside commercial results.
Embed learning into everyday work
Employees are far more likely to retain new knowledge when development is reinforced through regular coaching conversations, mentoring, stretch projects and constructive feedback rather than relying solely on classroom-based learning.
Invest in human capabilities
Communication, collaboration, leadership, decision making and critical thinking emerged as the capabilities employees believe matter most. As organisations increasingly adopt AI and automation, these skills are likely to become even more valuable.
Give managers time to coach
Managers are frequently expected to develop employees while balancing operational targets, administration and commercial pressures. Allocating dedicated time for coaching conversations can improve employee development while strengthening engagement and performance.
Create visible career pathways
Although employees remain optimistic about their future, many feel they lack sufficient opportunities to develop. Transparent career pathways, mentoring programmes, internal mobility and personalised development plans can help organisations convert employee ambition into long-term retention.
Click here to read the full report.
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