Young talent overlooked: Are companies creating their own future skills crisis?

In the past year, as organizations raced to strengthen their leadership capabilities and sales training to respond to market uncertainties, a critical oversight threatened their long-term success: the underinvestment in young talent development.

Lepaya's The State of Skills 2025 report analysed 148,773 training hours across 194 companies in 2024 and discovered a striking imbalance in talent development strategies. While senior leaders emerged as the top talent group in training hours, young professionals—who represent the future backbone of organizations—received notably less attention in upskilling programs. 

This pattern is particularly concerning as skills gaps continue to widen across organizations, threatening both immediate performance and long-term growth potential. Without a balanced approach to talent development, organizations may risk creating their own future skill crisis.

But what's driving this significant oversight in new talent development, and what are the implications for organizations' future leadership pipelines? More importantly, how can companies address this gap before it evolves into a full-blown skills crisis?

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The hidden costs of overlooking new talent development

The current imbalance in young talent development stems from a mix of organizational pressures and outdated mindsets. 

Under pressure to demonstrate immediate ROI and operating with limited budgets, companies often default to "safe" investments in senior leaders, placing too much responsibility on them as the sole agents of transformation. At the same time, many organizations hold a traditional mindset that views youth talent development as a "nice-to-have" rather than a strategic initiative, overlooking how rapidly workplace demands are evolving, particularly for Gen Z employees who will soon represent a significant portion of the workforce. The result is a dangerous gap in organizational capabilities that threatens long-term success.

"The risks of neglecting young talent upskilling are substantial and multifaceted," explains Ian Strik, Project Manager Learning Impact at Lepaya.

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“Nearly half of employees have left roles due to a lack of training opportunities—a statistic particularly relevant for younger generations who prioritize growth and development. This neglect can lead to a 22% skills gap in sectors like accounting, hindering innovation and productivity. Without proper development, young employees may contribute less to innovation, limiting the company's growth potential,” He said.

The impact of this oversight extends far beyond immediate skill gaps. When young professionals lack proper development opportunities, organizations face increased hiring costs to acquire external talent with needed skills instead of developing from within. This creates a double burden: the cost of external recruitment and the lost potential of internal talent who could have grown into these roles.

Perhaps most critically, this neglect creates a dangerous feedback loop in organizational culture. When young employees see limited investment in their development, it affects their engagement and commitment to the organization. This not only impacts current performance but can create a culture where learning and development are undervalued, making it harder to attract and retain top young talent in the future.

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Young leadership development: A critical need for junior employees

The significant gap in young talent development raises a crucial question: what core competencies does this generation need to thrive in today's workplace? While technical skills remain important, leadership capabilities have emerged as surprisingly crucial for young professionals, even before they step into formal management roles.

Today's organizations are increasingly moving away from rigid hierarchies toward more flexible, flatter structures. In this environment, even junior employees frequently find themselves:

• Leading projects without formal authority
• Coordinating work across multiple departments
• Making autonomous decisions
• Building consensus among diverse stakeholders
• Navigating ambiguity without clear direction

Yet, many organizations still view leadership development as something that can wait until an employee reaches a management position. This traditional thinking overlooks how early training can create compound benefits. When young professionals learn leadership skills early in their careers, they gain:

• Strategic thinking capabilities
• Effective communication techniques
• Change management experience
• Collaborative problem-solving abilities
• Confidence in decision-making

This early investment means they're better equipped to handle increasingly complex challenges as their careers progress, creating a natural pipeline of future leaders who can step up when needed.

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How Budget Thuis drives performance through young leadership development

As one of the Netherlands' leading energy suppliers, Budget Thuis has maintained consistent growth by positioning itself as a cost-effective alternative to traditional energy providers. However, in a highly competitive market, the company faces ongoing pressure to maintain agility and drive innovation while building strong team performance. Their rapid growth has created an urgent need to develop new leaders quickly and effectively.

Anouk Sanders, Team lead of Learning & Development at Budge Thuis, shares their experience:

"As a challenger in the energy market, strong leadership is very important to drive team performance and stay ahead of the competition. But we noticed that senior leaders find it harder to change their habits later because they already have their own way of working. This shows why it is so important to start training early.

Early investment helps young leaders develop strong people skills and a clear leadership style. It makes sure leadership is not only about technical skills but also about inspiring and guiding others. At Budget Thuis, this approach has made team performance better, and we believe it will help us build a strong leadership pipeline for long-term success!”

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Building a future-ready leadership pipeline

As we look toward the future, organizations can no longer afford to maintain the current imbalance in talent development. Those who continue to focus exclusively on current leadership while neglecting young talent risk creating their own future leadership crisis.

The path forward requires a comprehensive approach to young talent development. As Ian Strik explains:

"Effective leadership development for young talent should address two dimensions: First, coaches or mentors must adopt a democratic leadership style, focusing on motivation and precise instruction. Second, comprehensive programs should systematically address core aspects including self-awareness, trust-building, effective communication, and recognition of leadership strengths."

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By investing in young talent upskilling in this way, organizations won't just avoid future skills gaps—they'll build a stronger talent pipeline, and enhance innovation in an increasingly complex business landscape.

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