As the entry level becomes leaner, norms for advancement and development are changing, which is heightening the risk for unprepared and under-resourced managers.

"Employers have invested heavily in retirement programs, but the next challenge is proving these programs are moving employees closer to retirement readiness," said Chris West of WTW.

When employees start questioning the viability of their role, declining morale and company culture affect more than HR, but the entire business.

New research finds that just 6% of leaders say their middle managers companywide are ready to lead change.