Leadership Talent Gaps and Succession Challenges in Local Government

91 per cent of council CEOs identified leadership capability as a top priority for uplift, with concerns about executive talent shortages emerging as one of the most consistent themes across metropolitan and regional councils.

Local government in Australia is facing persistent leadership capability gaps.

Councils across the country report difficulty in attracting and retaining executive talent, and many long‑serving leaders are approaching retirement. This combination is creating a weakening of leadership pipelines at a time when councils need strong capability to respond to workforce change, community expectations and strategic demands.

Recent data confirms this concern. In the 2025 Australian Local Government CEO Index, 91 per cent of council CEOs identified leadership capability as a top priority for uplift, with concerns about executive talent shortages emerging as one of the most consistent themes across metropolitan and regional councils.

What the evidence shows

The CEO Index provides one of the most comprehensive national snapshots of leadership issues in local government. It highlights that leadership capability remains at the top of councils’ workforce agendas, with executive and senior leadership roles among the hardest to fill.

A similar pattern appeared in the 2024 Index, where councils reported both turnover in executive ranks and a loss of institutional knowledge as consequential risks.

Turnover and leadership change are practical realities in many councils. For example, Fraser Coast Regional Council in Queensland announced the departure of its CEO and three senior executives in 2025, triggering an extensive recruitment process across multiple executive positions. These kinds of transitions can place strain on councils’ capacity to deliver long‑term strategic goals while maintaining continuity of leadership.

Internal succession pathways: building capability from within

Succession planning is vital to address talent gaps. Structured internal pathways help councils identify and develop future leaders rather than relying solely on external recruitment, which is often slow and expensive.

Effective succession strategies typically include:

Leadership competency frameworks

that clearly articulate the skills required at senior levels
Talent reviews

to identify aspirational leaders within the organisation
Career maps and development pathways

that align with council priorities

Programs that support emerging leaders specifically for local government contexts are also making a difference. The Australasian Centre for Local Government’s Advancing Leadership Initiative aims to broaden leadership capacity across the sector by equipping aspiring professionals with governance‑led skills tailored to the unique challenges of local government.

Executive coaching and mentoring

Executive coaching and mentoring strengthen internal talent pools by expanding capability and confidence. These interventions help emerging leaders refine strategic thinking, improve stakeholder engagement and prepare for the broader responsibilities inherent in executive roles.

Coaching is particularly effective during key career transitions, such as moving from operational management into strategic leadership. Councils that embed coaching as part of development pathways often see stronger retention at senior levels and smoother transitions when appointments occur.

Metro and regional leadership pipelines

Leadership challenges affect both metropolitan and regional councils, but the dynamics can differ.

Regional councils often confront smaller local labour markets and fewer external candidates willing to relocate. This makes internal succession and local talent development even more critical. Councils in growing regional areas, such as the Fraser Coast, must balance continuity with the need for fresh perspectives — especially as senior leaders move into roles in other jurisdictions or sectors.

Metropolitan councils benefit from larger candidate pools, but they face competition from other sectors for experienced executives. They also need to ensure that internal talent pathways are equitable and accessible across diverse organisational functions.

Organisational culture: a crucial enabler

Leadership pipelines do not exist in a vacuum. Organisational culture profoundly influences whether emerging leaders stay, grow and eventually step into senior roles.

Recent reports of entrenched culture issues at some councils demonstrate the connection between culture and leadership stability. At Hobsons Bay Council in Victoria, a prolonged period of workplace behaviour concerns and executive turnover has required state oversight and prolonged monitoring. These situations highlight how culture can erode organisational capacity, complicate leadership transitions and reduce attractiveness for potential leaders.

Councils that invest in positive culture, clear expectations and behavioural norms create environments where emerging leaders are more likely to remain, grow and lead effectively.

A coordinated approach to succession and capability

Addressing leadership talent gaps and succession challenges demands a multifaceted approach:

Formal succession planning with clear pathways and accountability
Leadership development programs that combine coaching, mentoring and experiential learning
Cross‑council collaborations to widen access to leadership opportunities and networks
Culture interventions that reinforce shared values and leadership expectations

Local government’s capacity to deliver for communities depends on leadership stability and capability. Councils that make structured investments in their future leaders will find themselves better positioned to meet strategic priorities, manage change and sustain organisational resilience.