DDI, a global leadership company, has unveiled its Global Leadership Forecast 2025, the largest and most comprehensive study of leadership trends worldwide. Covering over 50 countries and 24 industry sectors, the report sheds light on critical challenges in leadership pipelines, such as stress-induced attrition, distrust, and skill gaps. These issues could significantly impact talent retention, economic resilience, and organizational success.
- Leadership Stress and Attrition
- 40% of leaders report considering leaving their roles to improve well-being, indicating significant strain in leadership pipelines.
- Declining Trust in Leadership
- Trust in immediate managers has dropped to 29%, a decline of 37% since 2022.
- Generational divides are evident, with older employees (ages 50-64) being the least trusting of their managers.
- High-Potential Talent at Risk
- The intention to leave among high-potential talent has increased from 13% in 2020 to 21% in 2024.
- High-potential employees are 3.7X more likely to leave if not provided with regular growth opportunities.
- Skill Gaps in Leadership
- Leaders identify “setting strategy” and “managing change” as their most significant skill gaps.
- Only 22% of HR teams prioritize these critical skills, leaving organizations vulnerable to stagnation.
- AI and Leadership Perception Divide
- Frontline managers are 3X more concerned about AI’s impact compared to senior leaders.
- Successful AI adoption requires cultural transformation and empathetic leadership to address trust and alignment challenges.
- Stephanie Neal, Director of DDI’s Center for Analytics and Behavioral Research:
- “Leadership is becoming an increasingly challenging role as organizations face economic volatility, AI skepticism, and generational workplace divides. Practices like self-reflection, open discussions, and continuous learning are essential to channel stress into growth and innovation.”
- Tacy M. Byham, Ph.D., CEO of DDI:
- “Talent recruitment and retention remain top priorities for CEOs. Organizational resilience and future-proofing depend on placing the right people in the right roles — now is the time for action.”
The Global Leadership Forecast 2025 underscores the urgency for organizations to address leadership challenges proactively. By prioritizing skill development, fostering trust, and bridging generational divides, businesses can build resilient leadership pipelines and adapt to an evolving business environment. Effective strategies to retain and develop high-potential talent will be key to ensuring long-term success in a rapidly changing world.
