A global study has revealed that leadership pipelines are under unprecedented strain, with 40% of stressed-out leaders considering stepping down to prioritise their wellbeing.
This alarming trend was highlighted in the Global Leadership Forecast 2025, published by leadership consultancy DDI. Spanning 50 countries and 24 industries, with insights from over 10,796 leaders and 2,185 HR professionals, the report identifies a growing leadership crisis exacerbated by economic uncertainty, workplace polarisation, and challenges associated with integrating artificial intelligence (AI).
LEADERSHIP UNDER PRESSURE
The survey uncovered several critical vulnerabilities threatening leadership pipelines. They include:
- Plummeting trust in managers: Trust in immediate managers has dropped to just 29%, a sharp 37% decline since 2022. Older employees (ages 50–64) report the lowest levels of trust, reflecting a widening generational divide in the workplace.
- High-potential talent at risk of leaving: The study found that high-potential employees—essential to future leadership pipelines—are 3.7 times more likely to leave their roles if they lack growth opportunities. The percentage of high-potential contributors planning to quit rose from 13% in 2020 to 21% in 2024.
- Critical skill gaps: Leaders identified strategic thinking and change management as their top areas of weakness. However, only 22% of HR teams prioritise these skills, leaving many organisations at risk of stagnation.
- AI adoption challenges: Frontline managers are three times more concerned about AI’s impact than senior leaders, indicating a cultural and strategic disconnect. Successful AI integration, the study suggests, will require empathetic leadership and organisational alignment.
LEADERSHIP CHALLENGES
The report noted that leadership roles are becoming increasingly unattractive as economic volatility and AI scepticism amplify workplace pressures. However, addressing these challenges could unlock significant opportunities for organisations willing to invest in their leadership development strategies.
“Our research highlights the importance of ‘conscious unbossing’ – a leadership approach centred on self-reflection, open dialogue and continuous learning,” shared DDI’s Director of Analytics and Behavioural Research, Stephanie Neal. “These practices help leaders channel stress into innovation and growth, even amid economic and technological disruption.”
TALENT RETENTION: A TOP CONCERN
According to Tacy M Byham, Ph.D., CEO of DDI, talent retention remains a pressing issue for executives globally. “The Great Resignation may be behind us, but over half of CEOs rank talent recruitment and retention as their number-one priority for the next five years,” Byham said. “Building resilience and future-proofing organisations requires decisive action to place the right people in the right roles.”
With leadership trust at record lows and high-potential employees on the brink of leaving, the Global Leadership Forecast 2025 serves as a wake-up call for organisations worldwide. Prioritising leadership credibility, bridging skill gaps, and fostering trust across all levels will be crucial to sustaining resilient and innovative workplaces in the years to come.
Click here to access the full report.
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