The Leadership Forecast Report - Credibility Crisis as Trust at an All-Time Low from Elevate Coaching

Insights from the Largest Global Study on Leader Challenges, Opportunities, and the Path Forward. Just Released - DDI's Leadership in 2025

Introduction: A New Era of Challenges

The Global Leadership Forecast 2025, the eleventh iteration of this landmark study, sheds light on the current and future challenges facing leaders and business owners who are the front-line of industry worldwide. Drawing insights from over 10,000 leaders and 2,000 HR professionals across 50 countries and 24 industries, this report reveals a critical inflection point in leadership.

As global disruptions like the pandemic and artificial intelligence (AI) reshape the workplace, leaders and business owners are tasked with navigating unprecedented complexities while maintaining trust, engagement, and organizational resilience.

This blog delves into the key findings of the report, highlighting the credibility crisis, the stress and burnout epidemic, the widening purpose gap, and opportunities for future-focused development.

1. The Leadership Credibility Crisis: Elevate coaching identify in report that Trust at an All-Time Low

Key Finding: Trust in leadership has eroded dramatically. Only 29% of employees trust their immediate managers, down from 46% in 2022.

This decline reflects a mix of economic instability, rapid technological disruptions, and heightened employee awareness of organizational power dynamics. Factors such as inconsistent communication, lack of transparency in decision-making, and insufficient support during periods of change have all contributed to this erosion of trust.

Interestingly, younger employees (aged 25-34) exhibit higher trust levels than older generations, indicating trust as a dynamic, experience-based perception.

What You Can Do: To rebuild trust, leaders must:

• Listen and respond empathetically. Authentic engagement fosters deeper connections.

• Promote psychological safety. Encourage employees to share ideas and concerns without fear of reprisal.

• Communicate transparently. Explaining decision rationales enhances trust.

• Foster innovation. Challenging outdated norms signals a commitment to continuous improvement.

2. AI Adoption: A Divide in Perception from Leaders and Generations

Key Finding: Front-line managers, business owners and leaders are three times more concerned about AI’s impact than senior leaders in organisations. This has created a trust gap that threatens successful implementation.

AI adoption requires significant changes in workflows, retraining, and team dynamics—a burden that disproportionately affects front-line leaders.

Only 27% of front-line leaders trust their senior leadership’s ability to implement AI effectively.

What Can You Do:

• Foster transparency: Regular communication about AI’s implications builds trust and reduces resistance.

• Engage front-line leaders early: Involve them in shaping AI strategies to create alignment.

• Invest in skills development: Equip leaders with the tools to integrate AI effectively.

  
  

3. Stress and Burnout: An Exodus Looms due to a burnout crisis

Key Finding: 71% of leaders report increased stress levels, with 40% considering leaving their roles due to burnout.

Time scarcity and inadequate resources exacerbate stress, leading to emotional exhaustion and reduced productivity. The leadership pipeline is at risk as leaders contemplate exiting their roles, creating a systemic vulnerability.

How to Combat Burnout:

• Provide work-life balance: Flexible policies and organizational support reduce chronic stress.

• Encourage self-reflection and open dialogue: Leaders who prioritize personal growth are 1.9 times less likely to experience burnout.

• Equip leaders with tools: Access to learning resources and development programs strengthens resilience.

  
  

4. The Purpose Gap: Front-line Leaders and managers Falling Behind

Key Finding: While the Senior leaders in an organisation thrive, with an increasing sense of purpose, front-line leaders and managers have experienced a 20% decline since 2020.

Front-line leaders and managers often lack strategic visibility and bandwidth for reflection, leaving them disconnected from business or company missions. This gap threatens employee engagement and retention. The larger the organisation the larger the gap.

Bridging the Gap:

• Prioritize well-being: Tailored programs addressing mental, physical, and professional health can enhance resilience.

• Deepen customer connection: Highlight the tangible impact of front-line leaders’ work.

• Develop interpersonal skills: Emotional intelligence and effective communication empower leaders to engage meaningfully.

  
  

5. Bench Strength and Talent Retention: A Fragile Pipeline

Key Finding: Only 20% of organizations express confidence in their a leader pipeline, and high-potential employees are 3.7 times more likely to leave without development opportunities.

Elevate Coaching provides solutions to minimise the impact of the lack of Leadership readiness, which has lagged for over a decade, with capability strength showing only modest recovery. Organizations risk losing rising stars if development remains stagnant.

Actionable Strategies:

• Engage leaders in succession planning: Involve senior leaders to build robust pipelines.

• Focus on diversity: Adopt unbiased talent identification processes to foster inclusivity.

• Invest in targeted development: Personalized, skill-based development accelerate growth.

6. Future-Focused Skills: Critical Gaps

Key Finding: 83% of HR professionals predict a surge in future leader and manager skills needs.

Capabilities such as strategic and business planning, change management and how to lead teams through change, and talent development.

Recommendations:

• Implement continuous skill development: Use advanced tools such as skill assessments or analytics to identify emerging gaps and hidden potential.

• Adopt scalable development solutions: AI-based tools and simulations offer personalized, practical learning experiences.

• Empower managers as coaches: Transformative coaching builds trust and drives performance.

  
  

Conclusion: Transforming Leadership for the Future

The Global Leadership Forecast 2025 underscores an urgent need to re-imagine leader development.

Trust, resilience, and purpose are critical foundations for navigating a complex future. By investing in holistic, future-focused strategies, companies and medium sized businesses can empower leaders to thrive amidst uncertainty and build a sustainable, high-performing workforce.

As the leadership landscape evolves, one thing remains clear: the future of work demands empathetic, agile, and clarity of vision from leaders.

For Full report here

Eloise Tzimas

Mob: 027 60069409

www.elevatecoaching.biz