Businesses struggle to find mid-tier managers after scrapping training in financial crisis: Survey

Businesses are struggling to fill mid-tier management positions after several were cut during the financial crisis, new research has revealed, but experts are encouraging SMEs to start up training younger workers instead of hiring externally in order to fill workplace gaps.

New research conducted by Executive Connection exclusively for SmartCompany shows 31.7% of 387 respondents are finding it hardest to recruit mid-tier managers, along with front-line staff and high-level managers.

The research also shows that businesses aren’t expecting any recovery soon, with over 50% of businesses expecting a recovery in late 2012-13. Just over 30% of businesses are also reviewing their business plans every month.

But Angus MacAlister, chief operating officer of the Australian Institute of Management, says businesses are somewhat reaping what they have sown after getting rid of several mid-tier managers during the financial crisis.

“The investment and education put into mid-tier managers has been slashed by a number of different organisations over the past few years, and it really takes a long time for a new trainee to come through the line.”

“That, to me, is the absolute message, that many businesses are reaping what they have sown in a way.”

MacAlister explains that because so many businesses have opted for thinner organisational structures, staff seen as expendable have been pushed to the wayside.

The downside to this, however, is that the opportunity for trainees to go from managing themselves to managing a group of people has been restricted.

“Replacing that has been quite a hierarchical structure, where people aren’t able to move as much. So the opportunities to progress along a career path has been reduced as businesses make those savings in the bottom line.”

However, he says this is a key mistake as businesses are ruining themselves of key talent that could have been brought up over the past few years rather than cut out altogether.

“Building good managers relies on the acquisition of skills and training. So I don’t think people are necessarily effective straight away at doing this role.”

“What you need to do is train those skills in order to be fully effective. You need to get in there, focus on developing talent, and then ensure they are brought from the bottom up.”

MacAlister says SMEs need to ensure they start developing those skills early and think long-term, so they’ll have competent managers in a few years.

“The trick is making sure they invest now, and think of those people as senior managers down the line.”

The Executive Connection research also showed 60% of chief executives and business leaders expect sales to increase during the New Year, while 48% expect to see higher profits in the next year, along with 87% expecting to maintain or increase headcount.