Why we’re failing new managers and how we can set them up for success 

Consider Sarah, a star barista at a popular coffee chain. Her lattes were legendary, and she had top-notch rapport with regulars. When a new manager position opened up, Sarah was the obvious choice. However, the transition from barista to boss was not what she expected.

Overnight, Sarah was grappling with scheduling conflicts, disgruntled employees, and the challenge of managing customer expectations from a completely different perspective. Without proper training, high performers like Sarah are navigating a storm without a compass.

This scenario is not unique. In reaction to a cooler hiring environment, a morphing workforce, and shifting market demands, organizations across the globe are relying more heavily on promoting from within for leadership roles, often without updating training methodologies. This results in steep learning curves and high failure rates for new leaders, inevitably impacting the morale and efficiency of entire teams.

Traditional training methods—designed for slower, more gradual career advances—fail to prepare new leaders for the giant skills leap that comes with the expectations and responsibilities of newfound leadership roles. This results in a “leadership delta,” where vast gaps in knowledge and capability become exposed when entry-level staff are promoted into senior roles, often overseeing multiple areas of the business.

Let’s explore the leadership delta and why and how organizations must challenge traditional learning methods to allow leaders to drive performance and become exceptional.

Despite regaining many of the jobs lost in recent years, myriad industries still suffer from a large number of unfilled positions. In response, companies are rethinking their approach to leadership development. By promoting high-performing staff to management roles earlier, leaner workforces are being stretched to meet customer needs.

The problem with this approach is that many organizations rely on dated training materials, processes, and technology, which often involve passive learning and role-playing scenarios and fail to address the practical realities of managing a team in a modern, higher-pressure environment. Additionally, the complexities of today’s business challenges require leaders to shift their mindset from traditional management to leadership with the courage to boldly imagine and pursue the future.

This chasm between managerial readiness and customer demand has set the stage for a critical examination of how organizations train and support new staff in leadership roles. Unaddressed, these sudden gaps in skills, experience, and agency among new leaders will exacerbate staffing and employee retention issues and hurt customer satisfaction—posing significant risks to businesses, especially in more vulnerable sectors.

Why new leaders are unprepared

The leap from entry-level employee to manager is particularly daunting. New managers often revert to their comfort zones, solving problems rather than coaching their teams. This behavior undermines the impact of effective leadership.

Data shows that younger workers are the hungriest for learning opportunities. Unfortunately, 63% of managers say their organization has not equipped them with upskilling resources. Contrast this with the reality that tech innovation and greater preferences for personalization and sustainable business practices have driven up customer expectations, and we see how this leadership delta has emerged.

The importance of good leadership cannot be overstated. Seventy-five percent of employees say the most stressful aspect of their job is their immediate boss. Furthermore, a 2023 study by The Workforce Institute at UKG, Mental Health at Work: Managers and Money, found that 69% of people globally said their managers had the greatest impact on their mental health, in some cases even surpassing the influence of their doctors (51%) or therapists (41%).

Why is this correlation so strong? It begins with the profound influence that leaders have on workplace culture and dynamics. A good leader does not just oversee tasks and manage schedules; they inspire, motivate, and cultivate an environment where employees feel valued and empowered. This sense of value and empowerment is critical, especially in high-stress industries where the pace can be relentless, with slim margins for error.

Moreover, leadership quality directly impacts employee retention and productivity. Employees who feel supported by their managers are more likely to stay with the company longer, reducing turnover costs and preserving institutional knowledge. They are also more engaged in their work, which translates to higher productivity and better customer service. This is particularly important as customer retention has become more difficult and thus more critical in recent years for business success.

When new managers like Sarah feel overwhelmed and ill-prepared, the presence of a leadership delta—the gap between existing skills and the demands of leadership roles—results in high turnover, decreased employee morale, and ultimately, a negative impact on customer experience.

Through extensive work with some of the world’s leading organizations, I’ve identified three of the most common and fundamental leadership deltas, which I believe are the most difficult to solve using traditional methods.

Coaching for performance

New managers often lack the skills to coach their teams effectively, preferring to solve problems themselves. This is a common scenario, where new managers revert to their comfort zones. Without the skills to coach team members, new managers fail to scale their successful behaviors across teams.

Effective coaching is more than solving immediate problems; it involves recognizing teachable moments, facilitating meaningful discussions, and allowing team members to handle issues independently. The key steps for successful coaching include spotting opportunities for development, creating a structured approach to discussions, and giving team members the space to learn from their experiences.

Traditional training methods, such as role-playing and classroom sessions, often lack the realism and repetition necessary for new managers to develop these skills. They also often cannot facilitate a psychologically safe environment to gain confidence—a critical factor for younger leaders.

All of these concerns can be addressed with newer technologies that exist today. One approach is through simulation training applications. Platforms like Attensi and Zenarate have advanced to offer AI-powered training technology, designed for corporate use, that can put people in realistic scenarios, allowing them to practice skill acquisition in controlled environments that closely mimic actual job conditions.

Akin to approaches used to train surgeons or pilots, simulations allow managers to immerse themselves in lifelike scenarios, making mistakes and learning from them before risking their reputation on the floor.

However, simulation training is just one part of the solution. Other effective methods include:

Peer coaching and mentoring programs: Pairing new managers with experienced mentors can provide guidance and support. Mentors can share their experiences, offer advice on handling specific situations, and provide a sounding board for new managers navigating their roles.

Regular feedback sessions: Implementing structured feedback sessions where managers and their teams can discuss performance, challenges, and development opportunities can foster a culture of continuous improvement and open communication.

Workshops and interactive training: Conducting workshops focused on coaching skills, where managers can engage in interactive activities, group discussions, and practical exercises, can enhance their ability to coach effectively.

Having difficult conversations

New managers often find it daunting to engage in difficult conversations, such as addressing poor performance or behavioral issues. Effective leadership requires navigating challenging discussions with confidence and sensitivity to build trust in employees and closely knit teams with positive social bonds.

Great leaders must provide constructive feedback without getting drawn into conflicts. The objective of difficult conversations should be to identify solutions and foster improvement rather than to punish. This involves setting clear boundaries, maintaining professionalism, and focusing on positive outcomes.

Unfortunately, this is often dismissed as a matter of experience, and little training material—beyond the average, outdated video or handbook—is offered to influence how leaders handle conflict. I’ve seen this critical oversight consistently, and it should be addressed with much more investment.

Organizations have a big opportunity to enroll leaders in a serious conflict resolution or emotional intelligence course or workshop. Fortunately, training in this area can be completed without pulling managers away from work. Online training catalogs such as Coursera or Udemy typically offer multiple classes that can be attended on-demand, over time.

Effectively communicating your culture

A consistent culture starts with leadership. Leaders must embody the company’s values and ensure these are communicated and understood throughout the organization. Doing this effectively involves more than just discussing values in workshops or distributing printed materials; it requires integrating cultural principles into everyday actions and decisions.

Traditional methods of imparting culture—presentations, printed materials, and verbal briefings—are insufficient. They often fail to translate theoretical concepts into practical, actionable behaviors. Today’s game-based training tools offer a more effective solution by providing a dynamic, interactive experience for managers to learn and practice.

Contrary to old-school training programs, like slide-based quizzes, which become a chore and encourage managers to check boxes as fast as possible to get back to work, gamified training is proven to improve performance by delivering lessons over time, offering instant feedback, rewarding learning progress, and being accessible on modern devices through apps. Tools like Mambo, MobieTrain, and others can be leveraged to create gamified experiences for managers to fully adopt and apply company culture standards in their work.

In addition to gamified simulations, other methods include:

Storytelling and case studies: Using real-life examples and success stories to illustrate cultural values can make them more relatable and easier to understand for employees.

Cultural Immersion programs: Creating opportunities for employees to experience the company’s culture firsthand, such as through immersion days, team-building activities, and cultural workshops, can reinforce key values and behaviors.

Recognition and reward systems: Implementing systems that recognize and reward employees who exemplify the company’s cultural values can encourage others to follow suit and help embed these values into the organizational fabric.

Invest in exceptional leadership

Organizations rely on young leaders to solve complex challenges in a changing business environment that depends heavily on improving customer experiences.

By recognizing that today’s leaders need modern ways to learn and grow in their roles, and being willing to invest in proven training approaches to improve coaching, handle difficult conversations, and communicate company culture, companies can avoid leadership deltas that inhibit the success of new managers—and their teams.