Author: Tom Lofthouse

In today’s dynamic job market, the pathways to leadership are varied, encompassing higher education degrees, direct experience, vocational education, or often, a combination of all three. As workforces evolve, industries demand increasingly specialised skills, and the economy faces a significant skills shortage, the traditional route of obtaining a university degree is being scrutinised. Is higher education still the golden ticket to career success, or has its value diminished due to oversubscription? How does vocational education stack up in preparing professionals for leadership roles? Should we re-assess the standard degree requirement for job roles across sectors?

The value of university degrees has prepared generations for successful careers, and provided an invaluable route to societal movement, however with so many graduates now flooding the market, some argue that a degree alone no longer guarantees a competitive edge. This oversubscription has led some to question the return on investment of spending years in academia, especially amidst soaring tuition fees and burgeoning student debts. Moreover, the rigid curriculum of many academic institutions can sometimes lag behind the rapidly changing demands of the modern workplace.

Vocational education is often seen as a ‘lesser’ pathway in Australian cultural norms, despite offering a more direct and often quicker route to employment, equipping students with specific skills tailored to industry requirements. For many, a university setting might be impractical, against their learning style or unaffordable. Vocational courses provide valuable opportunities, particularly for older workers, to update their skillset, making them more competitive in the job market.

Skills and labour shortages are two of the most pressing concerns facing societies and economies today. PwC’s 2023 Annual Global CEO Survey found that 52% of CEOs believe labour and skills shortages will significantly impact profitability in their industry over the next 10 years. During a time when businesses globally are having to respond to everything from the pandemic, economic and geopolitical uncertainty to stakeholder and competitive pressures, talent shortages are adding significant pressure. The report recommends a “skills-first” solution that ‘focuses on whether a person has the right skills and competencies for a particular role, rather than having the right degree, job history or previous job titles’. It democratises access to jobs and has the potential to deliver significant benefits to business, as well as society and economy.

Some sectors in Australia have already shown that an alternative route to qualification can be implemented successfully, for example, nursing, law, accountancy, IT and engineering. Employer sentiment is also changing; according to the National Centre for Vocational Education Research, in 2021 40.2% of employers had jobs that require vocational qualifications, up 6.0 percentage points from 2019. In a post-pandemic era with a national skills shortage, cost of living crisis and renewed focus on the diversity of learning styles and job needs, vocational skills training is re-building its reputation as a viable pathway to senior careers across industries, and a necessary requirement as people work longer in a rapidly changing world, highlighting the need for lifelong learning.

As business environments evolve, the need for continuous education becomes more pronounced. Vocational programs, with their focus on practical skills and immediate applicability, are well-suited to address this need. They offer an agile response to industry changes, such as new legislation or shifts in best practices. For example, the new Work Health and Safety Act 2020 in WA and associated responsibilities such as Psychosocial Hazards, necessitate a quick and effective educational response, something vocational courses are designed to provide.

The Australian Government has already begun to look into this broader issue with the Australian Universities Accord, policy shifts, and associated funding structures such as Jobs and Skills funding to promote the uptake of vocational education to address skills shortages.

So, given this recalibration of the education sector, should companies relax recruitment degree requirements? This question is becoming increasingly pertinent in today’s job market. For strategic roles that require critical thinking, extensive knowledge, or leadership skills that benefit from a theoretical grounding, a university degree might still be preferable. However, there are many roles where this requirement is superfluous. Vocational qualifications often indicate that the individual has specific, practical skills and a readiness to perform in a particular role from day one. The practical emphasis in vocational leadership training also prepares learners for real-life leadership challenges, particularly as people-leaders.

As we celebrate Careers Week in Australia during our current skills and cost of living crisis, this seems a pertinent time to also look at job requirements and the perception of pathways to certain roles. The integration of vocational training and traditional education, combined with real-world experience, will likely become the most effective strategy for developing future leaders. This blended approach ensures that individuals are not only well-rounded in theory but also adept in practical, applicable skills that drive industries forward. The pathways to leadership are diversifying, and the educational systems that support these paths must adapt accordingly to prepare the leaders of tomorrow.

The art and science of selecting and building the future leaders of your organisation is an investment that not only secures the present but lays the foundation for a thriving and sustainable future.

Whilst outside hires can bring new energy and expertise, it’s important not to overlook the talent within existing teams, nor the ability to nurture and grow your people with a strategically planned talent pipeline. The opportunity for promotion is not only beneficial for retention and motivation, it can be much more cost-effective when managed well.

Set a clear shared vision

The first step is defining and communicating a compelling and inspiring vision. This ensures everyone is working to a shared goal and enables you to identify the diverse skills and capabilities needed to achieve it. You can then craft a leadership team with the skills needed to guide the organisation toward shared goals.

Identifying potential

Forward-thinking organisations look beyond seniority and tenure to identify individuals who display a combination of skills, adaptability, and a passion for personal and team growth.

• The willingness and capability to step up and fill critical roles during challenging times shows responsibility and proactivity. Asking your people about their long-term career ambitions provides insights into their desire for growth and leadership and helps align junior staff with pathways to career progression.
• Assessing how individuals react to failure and pressure is crucial; true leaders demonstrate resilience, learning from setbacks and using them as opportunities for improvement.
• A keen eye should be cast on individuals who not only excel in their current roles but also demonstrate the capacity to inspire trust and influence their peers.
• Good communication skills entail not only the ability to convey ideas concisely, but to actively listen, empathise, and adapt communication styles to diverse audiences.

Even with all these boxes ticked, new leaders need support to successfully transition and make meaningful impact in their new role, addressing any weaknesses with upskilling through mentorship, training and KPIs.

Setting your people up for success

• Promoting talent from within comes with unique challenges, particularly when new leaders are tasked with managing former colleagues. Courses such as Managing Your Mates helps address the particular challenges of setting boundaries, communicating expectations, and resetting relationships within this new dynamic.
• Setting expectations and providing the tools needed to navigate challenges and uncertainties as they arise helps set new leaders up for success. Courses such as Manage Change Effectively and Risk Management can be helpful in providing tools and strategies to engage and motivate teams during transitions.
• Leadership is not confined to making strategic decisions; it involves understanding and managing emotions. Leaders with high Emotional Intelligence possess the capacity to recognise, understand, and manage their own emotions, and those of team members. Often seen as innate, it can in fact be developed. Programs such as Developing Your Team, and short soft skills courses enhance leaders’ self-awareness, empathy, and relationship management skills.
• Effective communication is paramount for leaders in any field. Leaders must articulate a clear vision, inspire confidence, and foster collaboration. This comes naturally to some, but it is valuable to build on these skills through courses such as Communicating as a Leader, where individuals learn principles of effective communication, gain insights into human behaviour, and acquire tools to convey messages persuasively. Courses also provide practical experiences, such as public speaking or group projects, allowing individuals to refine their communication abilities in real-world scenarios.

Lifelong learning and support

• Mentorship plays a pivotal role in this process; experienced leaders can offer valuable insights, guidance, and wisdom to those navigating the complexities of leadership for the first time. Mentees gain access to a wealth of knowledge, enabling them to make informed decisions and avoid common pitfalls.
• Coaching complements this support system by providing personalised guidance tailored to the individual’s strengths and areas for improvement.
• The provision of opportunities is essential for honing leadership skills. Offering challenging projects, secondments, and exposure to diverse experiences allows emerging leaders to test and expand their capabilities.
• Constructive feedback helps individuals understand their strengths and areas for development. A supportive environment that encourages continuous learning and growth empowers new leaders to navigate challenges with confidence, ultimately contributing to the overall success of the organisation.
• Finally, lifelong learning. Professional development should be individualised, tailored to the areas an individual needs or wants to work on. It is also most effective when self-led. Courses such as Development as a Leader helps build the self-reflection skills and forward planning to identify and plan areas for improvement within leaders, and within their team.

Building future leaders requires a strategic and comprehensive approach combining education, experience, and ongoing development. By embracing these principles, you can ensure a pipeline of capable leaders ready to steer teams toward a prosperous and resilient future.