The report, written with insights from Marsh, finds organizations are facing a structural leadership gap as AI reshapes work and provides a practical framework for closing it

Workhuman^®, the world’s leading employee recognition provider, released a new whitepaper, The Leadership Crisis You’re Already In, featuring insights from leading global professional services firm Marsh (formerly Mercer), examining why organizations need to rethink how they identify and develop their next generation of leaders.

At a time when the definition of leadership is changing, the report reveals a widening structural leadership gap within organizations. While AI is redefining what leadership requires, traditional career pathways are disappearing. Simultaneously, there has been a breakdown in the pipelines used to develop leadership potential, and succession planning remains rooted in yesterday’s signals of potential. The reality is that many of the leaders’ companies will need next are already inside the organization — just invisible to the current processes designed to find them.

Key findings from the whitepaper include:

Only 1 in 5 organizations are confident in their bench strength for critical roles. (Source: DDI, Succession Planning Best Practices: How to Close the Leadership Readiness Gap, 2026)
78% of executives say effective leadership increasingly requires navigating competing priorities and paradoxes. (Source: Marsh, Global Talent Trends 2026)
Only 32% of employees believe their company recognizes their potential for more complex or senior roles. (Source: Marsh, Global Talent Trends 2026)
68% of C-suite executives say better identification of high-potential talent could unlock greater performance, yet only 37% of HR leaders say their current approach works well. (Source: Marsh, Global Talent Trends 2026)
Continuous, peer-generated recognition provides a richer signal of influence, adaptability, values, and leadership potential than traditional processes capture. (Source: Marsh/Workhuman whitepaper analysis)

The whitepaper offers a practical framework to help organizations act on these findings: identify leadership potential earlier using signals such as recognition patterns and other HR data; define what leadership success looks like in the organization’s own context; build a pipeline that updates continuously rather than once a year; and invest in real development — stretch assignments, sponsorship, and structured feedback — over one-off training.

“Many companies will need to change the trajectory of their organizations if they don’t take a more deliberate approach to their leadership pipeline,” said Tara Cooper, Lead Global HR Tech Analyst at Marsh. “Future leaders are likely already in the organization. The opportunity is to find them earlier and invest in them deliberately, rather than waiting for the next succession review to catch up.”

Turning Recognition into Leadership Intelligence

Employee recognition program data is an underused source of leadership intelligence. The patterns captured through information-rich recognition programs can reveal influence, adaptability, cross-functional impact, and other signals of emerging leadership potential that traditional succession processes may overlook.

Combined with existing talent data, these insights can help organizations identify potential earlier, make more informed leadership decisions, and build stronger internal pipelines, turning recognition from an employee experience program into a strategic source of workforce intelligence.

“Future Leaders turns everyday recognition into a clear signal of where leadership potential sits,” said Tom Libretto, President at Workhuman. “It gives organizations a stronger basis for one of their most consequential decisions: who to put into critical leadership roles before succession gaps widen, high-potential talent is overlooked, or the wrong appointment creates years of downstream cost.”

About Workhuman

Workhuman^® is the world’s leading recognition and rewards platform, serving organizations of all sizes — from the Fortune 500 to fast-growing mid-market companies — across more than 180 countries. With over 25 years of category leadership, we support 8+ million employees worldwide and have facilitated more than 100 million moments of connection that elevate culture and drive performance.

With over a decade of consistent profitability, Workhuman^® stands as proof that investing in people delivers lasting business value. Our pioneering Human Intelligence^® technology transforms recognition into strategic insight, empowering organizations to unlock the full potential of their people while driving measurable business impact and culture transformation.

Learn more at www.workhuman.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20261008298746/en/

Media Contact: Aline De Oliveira
aline.deoliveira@workhuman.com

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