Employees remain highly motivated to advance their careers, but many organizations are struggling to convert that ambition into measurable workforce performance, according to new research from the American Management Association (AMA). The study suggests that while workers are eager to build new skills, insufficient manager training and limited development opportunities are creating a growing leadership gap that could affect employee engagement, retention, and long-term business performance.
Organizations have invested heavily in digital learning platforms, AI-powered training tools, and workforce development initiatives in recent years. Yet new research indicates that one of the biggest barriers to employee growth may not be access to learning technology—it may be the readiness of frontline managers responsible for developing talent.
The American Management Association (AMA) has released a new whitepaper, Ambitious Employees. Underprepared Managers. A Growing Organizational Risk., examining how employees and managers experience professional development, leadership readiness, workplace learning, and performance support. Based on responses from more than 1,000 professionals worldwide, the research paints a picture of a workforce eager to learn but often lacking the organizational support needed to translate that motivation into career progression.
One of the report’s most striking findings is the disconnect between employee ambition and workplace development opportunities. While 87% of respondents said they feel somewhat or very confident about their future career advancement, only 30% believe they have sufficient opportunities to develop new skills within their organizations.
The data suggests that employee engagement may not be the primary challenge many employers face. Instead, organizations may be underinvesting in the managerial capabilities required to reinforce learning through coaching, feedback, mentoring, and day-to-day leadership.
Manager preparedness emerged as another significant concern. According to the survey, 51% of respondents who moved into people management roles said they received no formal leadership training before taking on those responsibilities. Meanwhile, only 27% of employees described their managers as highly effective, and 66% reported they do not receive frequent support from their supervisors.
These findings align with a broader trend across the Human Resources technology sector, where organizations are shifting attention from simply delivering learning content to improving manager effectiveness and continuous workforce development.
Rather than relying solely on formal training programs, companies are increasingly investing in platforms that support coaching, skills development, performance management, career pathing, and internal mobility. Enterprise vendors including Workday, Microsoft, Oracle, SAP SuccessFactors, Cornerstone OnDemand, LinkedIn Learning, and Degreed continue expanding AI-powered capabilities designed to personalize employee development and help managers identify skill gaps.
The AMA report suggests that technology alone is unlikely to address leadership challenges unless organizations also strengthen management capability.
Among the most critical skills identified by respondents were communication, leadership, decision-making, collaboration, critical thinking, prioritization, and the ability to navigate ambiguity. Unlike technical competencies that can often be taught through structured courses, these capabilities typically require ongoing practice, coaching, and real-world application.
That finding reflects a wider evolution in Learning and Development (L&D). Modern workforce development increasingly emphasizes continuous learning integrated into everyday work rather than isolated classroom sessions or annual training programs. HR technology platforms are responding by embedding learning recommendations, performance insights, and AI-powered coaching directly into employee workflows.
Industry analysts have observed similar shifts. According to Gartner, organizations are increasingly prioritizing skills-based talent strategies that connect learning, performance, workforce planning, and career development within unified Human Capital Management (HCM) platforms. McKinsey & Company has also reported that demand for durable human skills—including communication, leadership, and adaptability—is expected to grow as artificial intelligence automates routine administrative work.
The report also underscores the strategic importance of first-time manager development. Promotions often reward technical expertise or individual performance, yet employees frequently transition into leadership positions without receiving the management training necessary to coach teams, provide feedback, resolve conflicts, or support career development.
This leadership gap can have broader organizational consequences. Inconsistent management practices may contribute to uneven employee experiences, lower engagement, reduced productivity, and higher turnover—issues that remain top priorities for HR leaders amid ongoing talent shortages.
For HR executives, the findings reinforce the need to view manager development as a core component of workforce strategy rather than a standalone leadership initiative. Organizations that combine structured learning with continuous coaching, mentoring, peer collaboration, and AI-enabled performance support may be better positioned to develop future leaders while improving employee retention and organizational resilience.
As enterprises increasingly adopt AI across HR operations, the human role of managers is also evolving. While automation can streamline administrative work, effective leadership, communication, and employee development remain distinctly human capabilities. The AMA research suggests that organizations able to strengthen both manager readiness and employee learning ecosystems will be better equipped to convert workforce ambition into sustained business performance.
Market Landscape
Learning and Development is becoming a strategic pillar of Human Capital Management as organizations move toward skills-based workforce planning and continuous employee development. Gartner reports that enterprises are increasingly integrating learning, performance management, and workforce analytics into unified HCM platforms. Meanwhile, McKinsey & Company projects growing demand for human-centric capabilities—including leadership, communication, collaboration, and critical thinking—as AI automates routine work. HR technology providers such as Workday, Oracle, SAP SuccessFactors, Cornerstone OnDemand, Microsoft, LinkedIn Learning, and Degreed continue investing in AI-driven learning and talent development solutions.
Top Insights
- AMA’s research found that employees remain highly motivated to grow professionally, yet many lack sufficient opportunities to develop new skills within their organizations.
- More than half of first-time managers reported entering leadership roles without formal management training, highlighting a persistent gap in leadership development.
- Communication, leadership, collaboration, decision-making, and critical thinking emerged as the workplace skills organizations need most to strengthen future workforce performance.
- The study suggests that coaching, mentoring, feedback, and real-world learning experiences are essential complements to formal employee training programs.
- HR leaders are increasingly viewing manager readiness as a strategic factor influencing employee engagement, retention, productivity, and long-term organizational resilience.
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