Jeff Smith Highlights Leader Development as Top HR Priority for 2025

With a whopping $166 billion funneled into leadership development annually in the United States., as noted by online resource Founderjar, it's clear that companies are betting big on their leaders. Jeff Smith, former global head of human resources at BlackRock and senior HR exec at Time Warner, considers leader and manager development the top priorities for HR departments in the upcoming year. His blend of industrial-organizational psychology smarts and front-line HR experience offers a fresh lens on what it takes to cut it as a leader today.

For those who don’t know, leadership development in human resources refers to a strategic approach to enhance individuals’ skills, competencies, and capabilities in leadership roles within an organization. This process involves various activities, including on the job experiences, coaching, training, mentoring, and succession planning, to prepare leaders to navigate the complexities of the modern workplace effectively, drive organizational change, and foster a positive and productive corporate culture.

Diving into the heart of leadership development, it's more than a buzzword — it's about supporting individuals with the skills to survive and thrive in the C-suite environment. Leadership isn't just about climbing the ladder; it's about being ready to wrestle the intricacies of today's workplace, spearhead change, and be the torchbearers of a culture that drives corporate success and focuses on people.

"Leaders need to drive change and help drive strategy and create culture," says Smith. Recent statistics shed light on the evolving leadership landscape within the corporate world. Despite the clear need for solid piloting, challenges such as burnout and a lack of gender diversity persist. Nearly 60% of business leaders are clocking out each day more drained than a smartphone battery, and 76% feel like they’re drowning under the weight of their to-do lists. Burnout is detrimental to individual well-being and threatens organizational health by potentially diminishing the pool of future leaders.

The corporate leadership training market is anticipated to reach $97.13 billion by 2033, underlining the growing recognition of its importance. However, approximately 58% of leaders have yet to receive formal coaching or training, pointing to a gap that organizations must address to cultivate effective captaincy.

“It is harder than ever to be a great leader and communicator,” says Jeff Smith, former head of global human resources at BlackRock and senior HR executive at Time Warner. He offers this advice for overcoming such obstacles: “There needs to be training and cultural support and accountability to help leaders with critical skills and incentivize leadership along with results”

The Only Constant Is Change

The HR industry outlook for 2024 indicates a significant shift toward hybrid work, with an AT&T study predicting that 81% of work will become hybrid. Additionally, the adoption of generative artificial intelligence in HR is on the rise and is expected to streamline processes like talent acquisition and employee engagement.

Bear in mind that the ethical use of AI and data privacy remain crucial considerations. Leadership also evolves toward a more human-centric approach, emphasizing communication and employee recognition. Predictive analytics will play a key role in decision-making, focusing on data-driven strategies for performance management and succession planning. 

Jeff Smith says, “The evolving theme here is the phasing out of traditional linear career paths, static job descriptions, and inflexible structures and moving toward more flexible and iterative career journeys that allow people to use their skills and build.” This transition requires innovation and a willingness to experiment within HR practices to accommodate the evolving needs of the workforce. Managing careers is “very hard and takes a lot of experimentation,” he says.

At the heart of it all, Smith believes in leaders who are change-makers, culture shapers, and alignment architects. “Leaders need to drive change and help drive strategy and create culture. Part of this is skill development, but part of it is creating the right job for leaders and managers and the right incentives,” says Smith.

The challenge lies in incentivizing individuals to take on leadership roles, which requires a combination of appropriate compensation, recognition, and the creation of meaningful roles because, as Smith says, “People who are successful in what they are doing need a reason to take on more and different responsibilities.”

Creating a unified culture becomes more complicated in a hybrid work environment due to the shift toward more video meetings and fewer face-to-face interactions. To achieve this, leadership must clearly articulate the desired culture. “Employees have to believe in and care about it, and in the end, both [leadership and employees] demonstrate behaviors consistent with the culture and feel like they belong,” says Smith. “All communication, training, incentivization, promotion criteria, need to be created with intention and the desired impact on culture in mind.”