Why Canada’s leadership pipeline is failing

Canada is facing a leadership crisis because we keep promoting the wrong people, not because we lack talent

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“What are you seeing out there?” It’s a question I hear regularly in my work with organizations across Canada. And five years after I first raised the alarm, the answer is more urgent than ever: Canada is in a full-blown talent crisis.

Across sectors—from health care to construction to tech—employers are struggling to find people with the right skills and leadership capacity to fill critical roles. That’s not just a corporate problem. It affects everything from service delays to economic growth.

Despite all the talk about transformation and leadership pipelines, most organizations continue to promote the wrong people, hire the same profiles and hope underdeveloped leaders will somehow rise to the occasion. We’ve known the fixes for years—clear expectations, real feedback and accountable development—but leaders still refuse to act.

Too many organizations treat leadership growth as something that just happens on the job, with weak feedback, informal learning and career development left largely to chance. Instead of telling new leaders what they need to learn—beyond deliverables—we assume they’ll “figure it out.” Managers often avoid candid conversations, and HR systems focus on checklists, not capability.

The result? Leaders who can manage a process but struggle to lead through uncertainty or inspire teams.

Here’s what works:

• Spell out what must be learned, not just what must be achieved: Don’t assume people know what growth looks like. When assigning a new role, identify two or three core leadership or behavioural capabilities the person should focus on. Be explicit: “This role is a stretch because it demands greater strategic thinking,” or “You’ll need to navigate high-conflict situations.”
• Provide regular, multi-source feedback to build self-awareness: Don’t rely on annual reviews. Encourage feedback from peers, team members and customers. A short check-in every 30 days is more effective than a yearly assessment. Pulse surveys—brief questionnaires sent every few weeks—can help gather real-time feedback and track progress. Informal peer or team conversations also build ongoing awareness..
• Track development progress with the same rigour as performance: Use a simple development plan that sets clear behavioural goals. Revisit it quarterly. Ask: Are they applying new skills? What changed? Make development as visible and measurable as Key Performance Indicators (KPIs).
• Don’t promote based on tenure—wait until real growth has occurred: Promotions should be earned, not automatic. Before advancing someone, ask: Have they closed the gap we identified when they took the role? Can they handle the next level of complexity? If not, give them more time and support.

This doesn’t require expensive programs—just commitment and courage.

Career mobility in Canada remains low, especially at the senior level. Despite remote work, many professionals still turn down opportunities that require relocation or stepping into the unknown. While some roles can be done remotely, leadership often demands closer engagement with teams, clients or local operations, making physical presence matter again.

From St. John’s to Saskatoon, recruiters see the same pattern: the job is there, but the talent won’t move—a missed opportunity that slows careers and weakens companies. Some of Canada’s best leaders won’t get promoted until they leave not just their city but their employer. That should be a red flag. If we want growth, we need more ambition, and workplaces worth taking a risk for.

And when we look outside for talent, we don’t do much better. Too many hiring managers chase the same tired profiles: same résumés, same industries, same credentials. But leadership isn’t one-size-fits-all. What works at Company A can fail at Company B. Culture and context matter. Yet we keep recycling the same candidates and overlooking others who could thrive if given the chance.

It’s time to take smart risks. Demand non-traditional candidates. That might mean someone from another sector, with unconventional credentials, or a career path that doesn’t follow the usual ladder but who brings adaptability, insight and grit. The best leaders often come from the edges, not the middle of the herd.

Canada is not ready for what’s coming. Mass retirements are accelerating. Artificial intelligence is transforming work faster than most organizations can adapt. This isn’t a future problem. It’s a right-now crisis.

Every empty role, every underdeveloped leader, every recycled hire is a decision. Keep going this way, and you’ll lose your top people, fall behind your competitors and watch your organization stagnate.

It’s not just strategy. It’s a test of will. Lead differently, or brace for the consequences.

Rebecca Schalm, PhD, is founder and CEO of Strategic Talent Advisors Inc., a consultancy that provides organizations with advice and talent management solutions.