In today’s job market, the challenge for managers isn’t just hiring talent — it’s figuring out how to keep people growing once they’re inside the company. But as employees lean toward job security and stability, developing leaders from within has become complicated.
That shift is pushing more organizations to think differently about how leadership is built from within.
One common approach is a leadership pipeline, or internal succession plan, which helps managers spot high-potential employees and start preparing them for bigger roles over time.
The idea isn’t just to fill roles faster — it’s to make sure growth inside the company is intentional and consistent.
These pipelines can improve retention, lower hiring costs, and make teams more stable. They also reduce the risk of a bad hire, since internal employees already know the culture and how things actually work day to day.
It seems like a win-win, but building a pipeline that works takes more than just promoting your best performers; it takes strategy.
What Is a Leadership Pipeline?
A leadership pipeline is a workplace succession strategy where managers identify employees with high potential and start preparing them for future leadership roles. Rather than waiting for a position to open up, leaders think ahead about who could grow into certain roles.
For employees, it can make career growth feel less uncertain. When managers are actively thinking about future roles, it’s easier for people to see how their current work connects to where they could go next.
As Amy Garefis, chief people officer of ZipRecruiter, explains, “You’ve already onboarded them, you’ve already gone through the hiring process. They know the players, they have their internal network, they know the business. Giving them that lever to grow their career within the company is a huge retention factor. They don’t have to go elsewhere to seek opportunity — they see it right in front of them.”
For managers, it can mean looking inward first instead of immediately turning to external hires.
When to Create a Leadership Pipeline Plan
There’s no perfect moment to start building a leadership pipeline, but waiting until a role opens up is usually too late.
As a manager, leadership planning should always be something you’re thinking of, Garefis explains.
While succession planning and training can be scheduled throughout the year, leaders should continuously be thinking about what roles may need to be filled in the next six to 12 months.
That ongoing approach helps take the guesswork out of promotions. Instead of reacting when a gap appears, managers can be intentional about who to promote, when to promote them and how to prepare employees for future opportunities.
How to Create Effective Leaders
Before an employee can become a leader at your company, they have to feel supported in their current role. They have to want to stay, and they need opportunities to build leadership skills before a promotion is available.
Anthony Belluccia, Ph.D., an organizational psychologist, says one of the biggest mistakes managers make is waiting until employees are ready to leave before trying to make them stay.
“Exit interviews are… like an autopsy at the end — what went wrong, and how could we have kept you? Stay interviews are preventative medicine because you can catch issues before you lose good employees,” Belluccia says.
He adds that stay interviews can be “insanely simple,” centered around three core questions: “What makes you stay? What would make you leave? And what would you change tomorrow?”
By having these ongoing conversations, managers can see where employees need extra support and where they would like to go next. It shows that they’re invested in employee growth.
Managers should also create opportunities for employees to build leadership skills before a promotion is on the table. One of the most effective ways to develop leaders is by giving them chances to practice leadership before they officially have the title.
“It’s not just identifying what those opportunities are, but it’s pushing and stretching your employees to make sure they understand why you’re putting opportunities in front of them,” Garefis explains.
That could mean leading a project, taking on a stretch assignment, mentoring a newer employee or working with another department.
Don’t Overlook Your Future Leaders
Managers may also need to rethink what leadership potential actually looks like. While many companies naturally gravitate toward employees who are outspoken, dominant or quick to take charge, those traits do not always translate into effective leadership.
“I too often see people judge somebody’s future leadership potential based on dominance. Are they loud? Are they aggressive? Do they seem decisive enough to lead?” Belluccia says.
While these might make up some leadership traits, they’re not the only ones to consider. Instead, he says managers should broaden how they evaluate potential.
Additionally, “It’s important to look at collaboration, curiosity, resilience and ability to be a good team member,” Belluccia says.
Taken together, that broader view helps managers avoid two common mistakes: promoting someone who doesn’t actually want to move into leadership or overlooking quieter employees who may be strong future leaders.
Still, Not Everyone Wants to Be Promoted
Even the strongest leadership pipeline depends on one thing: employees who are willing to step into new opportunities.
That has become more complicated in today’s job market. According to a 2025 Gallup report, employee engagement in the U.S. has fallen to its lowest level in more than a decade, with fewer workers reporting strong connections to their roles, teams or company mission.
That lower employee engagement, Belluccia notes, is feeding into a broader trend of employees becoming more risk-averse and less interested in traditional advancement.
“They want to cling to their jobs, they want to hug [them], because of the uncertainty in the job market,” Belluccia says.
For some employees, becoming a leader may feel less appealing than maintaining what they know and what feels stable.
“A lot of people are just trying to keep their roles,” Belluccia notes. “Managers may need to shift how they’re managing — thinking about things like recognition, transparency and predictability, as opposed to stretch goals.”
In some cases, growth may mean a traditional promotion. In others, it could mean gaining new skills, taking on cross-functional projects or expanding responsibilities without immediately moving into management.
The most effective leadership pipelines aren’t built around assumptions — they’re built around understanding what employees actually want and helping them prepare for opportunities when they’re ready.
This article originally appeared on USA TODAY. Reporting by Alyshia Hull, Special to USA TODAY.
USA TODAY Network via Reuters Connect.
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