Large companies are neglecting the development of internal executive candidates since the old paternalistic, career-oriented employment contract was destroyed with the downsizings of the 1990s…Similarly, companies invested less in career and executive development because of the new transience and heightened career mobility…So organizations aren’t doing what they need to do to develop executive talent, yet they decry a shortage. Then they poach from other organizations…that do prepare leaders. It seems they would rather pay a premium for their irresponsibility in executive development by hiring costly superstars rather than spend the money internally to develop their own.
Source: Across the Board (ATB)
Subjects: Corporate Governance, Organizational Behavior