Risk Trends 2025 and Beyond: The Digital Minds of Future Leaders
Risk Trends 2025 and Beyond: The Digital Minds of Future Leaders
In today’s digital landscape, the future of leadership depends on a digital mindset that can drive innovation and growth.
However, as Canada faces demographic shifts and an aging workforce, the challenge of finding and retaining the right leaders is more pressing than ever. With trillions in business assets set to change hands in the next decade, are companies prepared to develop the digital leaders they need?
Do your future leaders understand your critical technology?
In today's fast-paced world, the future of leadership hinges on digital transformation and retaining the digital-minded leaders required to succeed. It’s not just about being tech-savvy — it’s about leveraging technology to drive innovation, efficiency, and growth. The COVID-19 pandemic fast-tracked digital transformation planning, with many companies rushing to adopt new technologies. But now, they're realizing they might not have the right people to maximize these advancements.
Demographic shifts and workforce implications
Consider this: Canada has an aging population with an average life expectancy of 82.3 years, one of the highest in the world. According to the most recent Canadian Census, between 2016 and 2021, more than 1.4 million Canadians joined the ranks of those aged 55 and older. In 2021 alone, one in five working-age individuals were aged 55 to 62, marking an all-time high.
This demographic shift delays retirements and limits opportunities for the leaders of tomorrow, impacting business operations. To achieve sustainable success in the rapidly changing digital landscape, your organization must leverage the digital intelligence of the next generation.
A 2023 report from the Canadian Federation of Independent Business (CFIB) highlighted that 76 percent of business owners plan to exit their businesses within the next decade. That’s more than $2 trillion worth of business assets changing hands. The question is, can Canadian businesses survive, or will they be acquired, without digital-minded future leaders?
Organizations must prepare future leaders to manage and grow these enterprises while managing associated risks. One of the primary risks is the shortage of necessary skills. Many companies lack employees with the specialized skills needed for the future, making continuous learning and development essential to remain competitive.
Competing for the top digital minds
Another significant risk is talent competition. The race for top talent, especially those with specific skill sets, is fierce. Enterprises face talent shortages and higher recruitment costs. Future leaders must develop strategic recruitment and retention plans to attract and retain the top digitally minded talent.
To reduce turnover, businesses must create a positive work environment, and a culture of engagement and loyalty. Flexible work arrangements will go far in retaining the leaders of tomorrow.
Why stop there? Here are other risks to consider:
- Toxic Culture
- Weak leadership
- Inadequate succession planning
- Inadequate workforce diversity and lack of inclusivity
- Remote work challenges
- Reduced productivity due to employee well-being issues
- Impact of automation and AI creating new risks
Questions to ask:
- Are you recruiting, developing, and retaining the digital minds your organization requires to be successful?
- Are your organizational structure and job descriptions designed to optimize value from your digital assets?
- Are you confident in sourcing future leaders who can compete and deliver strategic value in a digital world?
