In today’s job market, the challenge for managers is not only to hire talent, but to find ways to continue to grow them once they join the company. However, developing leaders from within becomes complex as employees lean toward job security and stability.
This shift has led more organizations to think differently about how to build leadership from within.
One common approach is leadership pipelines, or internal succession planning. This helps managers identify high-potential employees and start preparing them for larger roles over time.
The idea is to ensure that growth within the company is intentional and consistent, rather than simply filling roles quickly.
These pipelines increase retention, reduce hiring costs, and make your team more stable. It also reduces the risk of rejection, as internal employees already know the company culture and how day-to-day work actually works.
It sounds like a win-win, but building a working pipeline requires a strategy that goes beyond just promoting your best performers.
What is the Leadership Pipeline?
A leadership pipeline is a workplace succession strategy that helps managers identify high-potential employees and prepare them for future leadership roles. Rather than waiting for a position to become available, leaders think ahead about who has the potential to grow into a particular role.
For employees, it reduces uncertainty about career growth. When managers are actively thinking about their future roles, it’s easier for employees to understand how their current work connects to their next goals.
Amy Galefis, Chief Human Resources Officer at ZipRecruiter, explains: “You’ve already onboarded them, you’ve already gone through the recruiting process. They know the players, they have the internal network, they know the business. Giving them the tools to grow their career within the company is a huge retention factor. They don’t have to go elsewhere for opportunities. They’re seeing it right in front of them.”
For managers, that could mean looking internally first, rather than immediately looking to external hires.
When to create a leadership pipeline plan
There’s no perfect time to start building your leadership pipeline, but waiting until a role becomes available is usually too late.
As a manager, you should always be thinking about your leadership plan, Garefis explains.
Succession planning and training can be planned throughout the year, but leaders need to continually think about what roles they will need to fill over the next 6-12 months.
This continuous approach helps take the guesswork out of promotions. Rather than reacting to gaps as they arise, managers can be intentional about who to promote, when to promote, and how to prepare employees for future opportunities.
How to create effective leaders
Before an employee can become a leader in a company, they need to feel supported in their current role. They need to want to stay and need the opportunity to build leadership skills before promotion is available.
Organizational psychologist Dr. Anthony Belluccia says one of the biggest mistakes managers make is waiting until an employee is ready to leave before trying to get them to stay.
“Exit interviews are like…the final autopsy: What went wrong and how could we have kept you? Exit interviews are preventative medicine, because you catch problems before you lose a good employee,” Belluccia says.
He added that retention interviews can be “very simple”, centered around three core questions: “What will make you stay? What will make you leave? And what will you change tomorrow?”
These ongoing conversations allow managers to learn where employees need additional support and where they want to go next. It shows that you are invested in the growth of your employees.
Managers should also provide opportunities for employees to develop leadership skills before promotions are awarded. One of the most effective ways to develop leaders is to give them an opportunity to practice leadership before officially earning the title.
“It’s about not only identifying what those opportunities are, but also pushing and stretching your employees to make sure they understand why you’re giving them the opportunity,” Galefis explains.
That could mean leading projects, taking on demanding assignments, mentoring new employees, or collaborating with another department.
Don’t miss out on future leaders
Managers may need to reconsider what their leadership potential actually is. Many companies are naturally attracted to employees who are outspoken, dominant, or quick to take charge, but these traits don’t always translate to effective leadership.
“I often see people judge someone’s future leadership potential based on their dominance. Are they loud? Are they aggressive? Do they seem decisive enough to be a leader?” Belluccia says.
While these may form part of your leadership traits, they are not the only ones to consider. Instead, he says, managers need to expand the range of ways they evaluate potential.
Additionally, “it’s important to focus on collaboration, curiosity, resilience, and the ability to be a good team member,” Belluccia says.
Taken together, that broader perspective helps managers avoid two common mistakes. That means promoting people who don’t actually want to be in leadership positions, or overlooking quiet employees who could become strong leaders in the future.
Still, not everyone wants a promotion
Even the strongest leadership pipelines depend on one thing: employees willing to step into new opportunities.
Today’s job market makes it even more complicated. According to a 2025 Gallup report, employee engagement in the United States has fallen to its lowest level in more than a decade, with fewer employees reporting a strong connection to their role, team, or company’s mission.
Belluccia points out that declining employee engagement is contributing to a broader trend of employees becoming more risk-averse and less interested in traditional progress.
“Because of the uncertainty in the job market, they want to hang on to their jobs and give them a hug,” Belluccia said.
For some employees, being a leader may feel less appealing than staying with what they know and what they feel is stable.
“A lot of people are just trying to protect their role,” Belluccia said. “Managers may need to change the way they manage, including thinking about things like recognition, transparency, (and) predictability rather than stretch goals.”
In some cases, growth can mean a traditional promotion. It may also mean learning new skills, taking on cross-functional projects, or expanding your responsibilities without immediately stepping into a management role.
Rather than being built on assumptions, the most effective leadership pipelines are built around understanding what employees actually want and helping them prepare for opportunities when they’re ready.
