PEOPLE EXPERIENCE & ENGAGEMENT

When Boredom Drives Turnover on Your Team | Harvard Business Review (2025) | A groundbreaking study of UN peacekeepers reveals that workplace boredom isn't just an inconvenience—it's a significant turnover driver. The research shows how helping employees pivot from abstract, lofty goals to more minor, achievable wins can dramatically improve engagement and retention.

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✨ OVERVIEW

This research explores how workplace boredom—mainly "existential boredom"—significantly impacts employee engagement and retention. Based on a multi-year study of 63 UN peacekeeping officers, researcher Madeleine Rauch from Cambridge University found that boredom becomes problematic when it stems from a deep sense of purposelessness rather than merely tedious tasks. The study identifies key differences between employees who successfully manage boredom and those who become disengaged. Successful employees accept boredom's existence and pivot toward smaller, achievable goals. In contrast, those who refuse to acknowledge boredom and rigidly focus on distant objectives experience widening gaps between aspirations and daily realities, leading to disengagement and turnover. The article provides concrete strategies for managers to address existential boredom through strategic goal-setting, recognising incremental achievements, encouraging adaptability, and normalising conversations about boredom.

🧩 CONTEXT

While situational boredom (temporary disinterest in repetitive tasks or tedious meetings) has always existed in workplaces, existential boredom represents a more profound crisis where employees question the fundamental purpose of their work, asking "What am I even doing here?" This problem has intensified with increasing burnout rates among workers, contributing to trends like "quiet quitting" where employees disengage from non-essential tasks. The study of UN peacekeepers provides unique insights because these workers operate in extreme conditions yet report feeling bored 90% of the time despite their mission's meaningful purpose. This paradox—boredom within purposeful work—makes them an ideal group for understanding how even mission-driven organisations can struggle with employee disengagement.

🔍 WHY IT MATTERS

↳ Existential boredom drives turnover differently than conventional boredom—The research distinguishes existential boredom (questioning work's purpose) from situational boredom (temporary task-based disinterest). This deeper form has become more pronounced as increasing burnout leads employees to question why they work so hard. When these questions go unanswered, employees may begin "quiet quitting." The study found that peacekeepers who couldn't overcome existential boredom were less than half as likely to re-enlist for another mission compared to counterparts who successfully reframed their experience.

↳ Traditional approaches to motivation often backfire—The research reveals that rigidly focusing on ambitious end goals without acknowledging day-to-day realities worsens disengagement. The study found that peacekeepers who viewed boredom as a personal failure and refused to adjust their expectations experienced more incredible frustration as the gap between aspirations and actual work widened. This approach often "backfired," leading to higher turnover as these individuals were significantly less likely to sign up for another mission. This suggests that conventional motivational approaches focusing solely on inspirational long-term visions may inadvertently contribute to existential boredom rather than alleviating it, primarily when the daily reality doesn't provide regular progress experiences.

↳ Boredom affects organisational performance broadly—Left unchecked, workplace boredom can derail even the most ambitious corporate initiatives, from large-scale digital transformations to sustainability efforts. The research demonstrates that addressing boredom isn't merely a "nice-to-have" employee perk but an essential practice for keeping teams engaged and organisations thriving. The effects of unaddressed boredom cascade beyond individual productivity to impact innovation, collaboration, and ultimately, a company's bottom line.

💡 KEY INSIGHTS

↳ Acceptance is the first step to overcoming existential boredom—The most engaged employees first acknowledged that boredom was a natural part of pursuing ambitious goals. Rather than seeing boredom as a failure, they recognised the inherent challenge in connecting abstract objectives (like "establishing peace") to daily activities. This acceptance allowed them to reframe their expectations and approach their work differently, ultimately leading to greater fulfillment despite experiencing boredom most of the time.

↳ Smaller, achievable goals maintain engagement amid lofty missions—Employees who successfully overcame existential boredom proactively shifted their focus from distant, abstract goals to immediate, attainable objectives. The research highlighted peacekeepers who initiated local projects like distributing school supplies or establishing mobile courts—activities that still contributed to the larger peace-building mission while providing concrete, near-term accomplishments. By reframing their expectations and focusing on clearly scoped tasks that delivered visible results, these employees maintained higher engagement levels despite operating in challenging environments. This approach effectively bridges the gap between organisational aspirations and employees' psychological need for tangible progress.

↳ Specific warning signs can help identify existential boredom—The research identifies four key indicators that an employee may be experiencing existential boredom: emotional detachment (appearing flat or indifferent), questioning the meaning of their work (making comments like "Does this even matter?"), persistent restlessness or fatigue (appearing lost in thought or delaying simple tasks), and withdrawal from colleagues (avoiding meetings or stopping contribution to discussions). These signs are particularly significant when they represent a change from an employee's typical behaviour.

🚀 ACTIONS FOR LEADERS

↳ Set short- and long-term goals—Balance future aspirations with present achievements by connecting immediate milestones to the broader mission. Microsoft exemplifies this approach by celebrating its breakthrough quantum chip Majorana 1 while acknowledging it's just one step in their more extended quantum processing unit development. This balanced approach keeps employees engaged with achievable targets while maintaining sight of inspirational long-term visions.

↳ Celebrate incremental wins—Regularly acknowledge progress toward larger goals, helping employees see the value in their day-to-day contributions. Netflix demonstrates this by celebrating subscriber growth from specific initiatives like live sports streaming, even as they pursue broader competitive strategies. During performance reviews, explicitly draw connections between individual tasks and organisational objectives, helping employees understand how their work contributes to the bigger picture.

↳ Foster environments that encourage adaptability—Create conditions where teams feel empowered to adjust their approach rather than rigidly adhering to original plans. Companies like Google (with its 20% time for side projects), 3M (whose culture led to the creation of Post-it Notes), and Atlassian (with "ShipIt Days") demonstrate how giving employees space to pursue related but self-directed projects can combat boredom while potentially yielding unexpected innovations.

↳ Normalise conversations about boredom—Openly acknowledge that boredom is a natural part of work, especially when pursuing ambitious goals with slow or unclear progress. The research emphasises that "ignoring this reality can breed disengagement, but acknowledging it can be the first step to setting new, engaging plans." McKinsey's example of regularly taking the "pulse" of its workforce to gauge how employees feel about their work and making responsive changes demonstrates how organisations can proactively identify emotional strain before it leads to quiet quitting. Open conversations, thoughtful support, and a renewed focus on the "why" behind the work can make a significant difference in helping employees find meaning in their daily tasks.

🔗 CONCLUSION

Workplace boredom, particularly in its existential form, presents a significant challenge for organisations pursuing ambitious long-term goals. The research demonstrates that boredom isn't the problem—how organisations and individuals respond. By acknowledging boredom, focusing on achievable goals, celebrating incremental progress, and fostering adaptability, leaders can transform potential disengagement into opportunities for innovation and growth. While this study focused on peacekeepers, the findings apply broadly across organisational contexts. In a world where ambitious visions can take years to realise, focusing on meaningful immediate wins is key to sustaining momentum—whether work happens in corporate headquarters or conflict zones.

🎯 KEY TAKEAWAY

Boredom doesn't have to be a barrier—savvy managers can harness it to spark innovation and recalibrate goals. In a world where ambitious visions can take years to realise, focusing on the here and now is key to sustaining momentum, whether the work happens in Boston, Bogotá, Baghdad, or Bangui.

FLEXIBLE WORKING

Returning to the office? Focus more on practices and less on the policy | McKinsey Quarterly (2025) | New research reveals that the return-to-office policy matters far less than the work environment organisations create. A study of thousands of US employees shows that five core practices—collaboration, connectivity, innovation, mentorship, and skill development—drive performance regardless of whether teams work in person, hybrid, or remote.

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✨ OVERVIEW

This McKinsey research challenges the current debate about return-to-office (RTO) policies by revealing that the specific working model is far less important than the work environment organisations create. Based on a survey of thousands of US employees, the research shows that despite the shift toward in-person work, employee satisfaction and productivity metrics remain similar across all working models. The real issue is that organisations struggle to support five core practices that drive performance: collaboration, connectivity, innovation, mentorship, and skill development. The article identifies a significant disconnect between leaders' and employees' perceptions of how well these practices are implemented, with leaders consistently overestimating their effectiveness.

🧩 CONTEXT

Major organisations like Amazon, JP Morgan Chase, and Nike have mandated in-office policies at least four days a week, sparking debates about whether RTO policies are appropriate for today's workforce. However, McKinsey's research suggests these discussions miss a critical point: the policy itself isn't as important as the work environment and practices accompanying it. Despite overall satisfaction with working arrangements across models, employees report high intention to leave (39%) and burnout levels (28% to 36%), indicating persistent problems that transcend working models.

🔍 WHY IT MATTERS

↳ The working model alone does not determine performance—The data shows that in-person, hybrid, and remote workers report remarkably similar outcomes. Intention to leave remains nearly identical: 38% for in-person and hybrid workers and 41% for remote workers. Burnout levels are identical: 35% for in-person workers, 28% for hybrid, and 36% for remote workers. Employee effort shows only modest variation, with 34% of in-person workers strongly agreeing they put substantial effort into their work versus 29% for remote and 28% for hybrid workers.

↳ Leaders and employees have drastically different perceptions—Leaders' views of organisational practice maturity are 23-29 percentage points higher than employees' assessments. While 90% of surveyed leaders view connectivity as a mature practice, only 67% of employees agree. This perception gap means leaders may be blind to the real problems affecting their teams.

↳ Employee expectations have fundamentally changed—With 90% of remote workers and 80% of hybrid and in-person workers reporting satisfaction with their current arrangement, it's clear that a one-size-fits-all approach won't work. This is especially important for Gen Z workers, who report higher intention to leave (45-51%) and often perform best in hybrid environments.

💡 KEY INSIGHTS

↳ Five key practices drive performance regardless of working model— Collaboration, connectivity, innovation, mentorship, and skill development fuel organisational health irrespective of where employees work. Only half or fewer respondents in each model rated these practices (except connectivity) as effective at their organisations.

↳ Each practice has specific enablers that vary by working model—For collaboration, goal alignment ranks as the top enabler across all models. However, secondary factors differ: skill proficiency matters more for in-person work. At the same time, network accessibility becomes crucial for remote workers. For connectivity, leadership connection tops the list for in-person and hybrid workers, but job satisfaction takes precedence for remote employees. Innovation shows more significant variation: psychological safety leads for in-person workers, innovative culture for hybrid teams, and leader support becomes essential in remote settings.

↳ The social fabric requires deliberate maintenance—In-person workers are 10% more likely to believe they exceed expectations (25%) than hybrid workers (15%). Self-reported effort varies, with 34% of in-person workers strongly agreeing they put substantial effort into their work compared to 29% of remote and 28% of hybrid workers. Increased effort correlates with helping peers and mentoring new colleagues—behaviours that strengthen the organisation's social fabric but don't automatically materialise through proximity.

🚀 ACTIONS FOR LEADERS

↳ Senior leaders: Complement RTO policies with organisational health initiatives—Conduct an organisational health assessment to diagnose strengths and weaknesses. Shape physical environments to support various activities with adequate meeting spaces and private work areas. Maintain flexibility within RTO policies, particularly for Gen Z workers. Most importantly, visibly model the behaviours you're demanding from others.

↳ People managers: Design the workweek for maximum effectiveness—Allocate focused time with team members regardless of working model. Design workweeks with deliberate combinations of: individual time, scheduled team collaboration, and planned cross-team connections. Proactively plan when productive interactions will occur rather than assuming they happen naturally.

↳ Strengthen key enablers for each core practice—For collaboration, regularly clarify priorities and connect work to strategic objectives. For connectivity, proactively block calendar time for coffee chats, one-on-ones, and skip-level meetings. For innovation in remote settings, provide additional leadership support. For mentorship, combine formal programmes with informal peer coaching. For skill development, invest in resources beyond traditional training.

↳ Employees: Proactively adapt to new norms—Schedule regular check-ins with managers and colleagues, avoiding video calls when everyone is in the building. Align with managers on strategies for quiet time. Initiate authentic conversations about personal constraints and team norms to problem-solve for optimal outcomes jointly.

🔗 CONCLUSION

The debate about the best working model misses the fundamental issues affecting today's workforce. The policy mandate is far less important than the work environment and practices accompanying it. The substantial gap between leader and employee perceptions highlights a critical blind spot that must be addressed. By focusing on specific enablers that drive each practice and tailoring approaches to their chosen working model, organisations can improve employee experience regardless of where work happens.

🎯 KEY TAKEAWAY

To improve performance, leaders must first reestablish the five fundamental practices that drive organisational health—collaboration, connectivity, innovation, mentorship, and skill development—then select the working model that best fits their culture.

EMPLOYABILITY & LEARNING CULTURE

Global Skills Taxonomy Adoption Toolkit: Defining a Common Skills Language for a Future-Ready Workforce | World Economic Forum (2025) | A groundbreaking toolkit offering practical guidance for businesses, governments, and education providers to establish a common skills language and create a workforce prepared for future challenges.

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✨ OVERVIEW

The World Economic Forum's "Global Skills Taxonomy Adoption Toolkit" provides a practical, step-by-step guide for implementing a standardised skills language across businesses, governments, and educational institutions. Released in January 2025, this comprehensive resource addresses the critical challenge of skills and talent shortages by offering actionable strategies for adopting a common skills framework. The toolkit outlines a three-phase approach: identifying strategic priorities, assessing critical skills for future readiness, and establishing governance mechanisms for sustainability. It emphasises that a unified skills language enables more transparent communication about in-demand skills, helping employers identify suitable talent, guiding educators in designing relevant training, and empowering job-seekers to showcase their capabilities. By adopting this approach, organisations can transform hiring, developing, and deploying talent, creating a more adaptable, inclusive, and resilient workforce prepared for emerging demands.

🧩 CONTEXT

As technological advancements and economic shifts rapidly transform the global labour market, organisations worldwide face the significant challenge of identifying, developing, and deploying talent with the right skills to remain competitive. The traditional reliance on educational credentials and experience as proxies for skills has perpetuated talent scarcity and excluded capable individuals lacking formal qualifications. Without a common language to describe skills across sectors and borders, communication between employers, educators, and job-seekers remains ineffective, creating persistent mismatches between supply and demand. The Global Skills Taxonomy addresses this fundamental issue by providing a structured framework that enables stakeholders to align on skill requirements and collaborate effectively in addressing labour-market shortages through targeted upskilling and reskilling initiatives.

🔍 WHY IT MATTERS

↳ Skills taxonomies enable strategic workforce planning—Using skills taxonomies helps organisations forecast and benchmark skills needs by analysing current workforce capabilities and identifying emerging global, country, and industry trends. By overlaying skills supply and demand data, businesses can better anticipate where skills gaps are prevalent or emerging and target plans and investments accordingly. This foresight enables informed decision-making around reskilling, upskilling, and talent redeployment, ensuring a workforce prepared for future challenges.

↳ Skills-first hiring practices broaden talent pools—Implementing skills-based hiring allows organisations to tap into diverse talent by being flexible with formal degree requirements and prioritising candidates' actual skills and capabilities. This approach makes recruitment more inclusive by creating opportunities for individuals from varied backgrounds and facilitates more substantial talent matching based on demonstrated abilities rather than credentials. Organisations using this approach have reported improved job performance, productivity, and retention rates by focusing on the specific skills determining success in a role.

↳ Common skills languages improve curriculum alignment—A standardised language bridges the disconnect between educational outcomes and industry needs. Academic institutions can leverage skills taxonomies to align curricula with evolving workplace requirements, ensuring students acquire competencies that genuinely matter in the job market. This alignment enhances graduates' employability while helping educational providers demonstrate clear value in their offerings, directly connecting learning outcomes to professional success.

↳ Skills-first approaches foster greater workforce adaptability—Organisations with clearly defined skills frameworks in rapidly changing industries can identify employee reskilling pathways more quickly. When roles become automated or obsolete, having a granular understanding of the transferable skills within the workforce enables more effective redeployment of talent to emerging areas. This adaptability preserves organisational knowledge and reduces the human and financial costs associated with layoffs and new hiring cycles.

💡 KEY INSIGHTS

↳ Adoption requires a phased implementation approach—The toolkit outlines a three-phase roadmap for skills taxonomy adoption, beginning with identifying strategic priorities, assessing critical skills for future readiness, and establishing governance mechanisms for sustainability. Each phase builds upon the previous one, creating a structured pathway organisations can follow regardless of their starting point. This phased approach recognises that successful implementation depends on aligning the skills taxonomy with specific organisational needs and gradually embedding it into existing systems and processes.

↳ Key enablers determine implementation success—Three critical enablers significantly impact the effectiveness of skills taxonomy adoption: aligning skills initiatives with strategic goals, fostering a skills-first culture, and securing continuous stakeholder buy-in. Organisations that successfully address these enablers overcome common barriers like unclear business cases, limited engagement, and fragmented stakeholder support. For instance, businesses are advised to focus on high-impact talent challenges where a common skills language can directly contribute to key outcomes, such as improving talent attraction and retention or enhancing workforce productivity.

↳ Technology plays a crucial role in skills mapping—Emerging technologies like machine learning, AI, and generative AI are increasingly vital for efficient skills assessments. These tools can analyse job descriptions, work histories, credentials, and performance reviews to extract skill information with up to 80% greater speed and accuracy than manual methods. The toolkit highlights that technology adoption should be approached carefully. Benefits include reduced manual effort, improved consistency, enhanced governance, and dynamic skill matching that continuously updates using real-time data from various sources.

↳ Granularity needs vary based on organisational needs—Organisations must determine the appropriate level of taxonomic detail based on their specific use cases and resources. For example, companies needing to track specialised skill sets or place employees in highly technical roles (such as software developers) may require detailed classifications from the outset. In contrast, organisations focused primarily on broader upskilling needs might benefit from starting with broader skill categories that can be refined over time as their taxonomy matures.

↳ Cross-walking taxonomies bridges skill recognition gaps—Cross-walking different skills taxonomies is essential for creating interoperability between systems and fostering collaboration among stakeholders. This process helps bridge disconnects between youth and adult learning, demonstrating how skills acquired during education evolve in the workplace. The toolkit provides examples of how frameworks like the World Economic Forum's Education 4.0 Taxonomy align with the Global Skills Taxonomy, creating continuous development pathways from school to career.

🚀 ACTIONS FOR LEADERS

↳ Map current and future skill requirements—Begin by identifying the critical skills your organisation possesses and those needed to support overall business strategy. Without this alignment, efforts risk becoming siloed or disconnected from strategic goals. Use data analytics to understand current skills and labour-market trends, projecting future skill needs. Consider HR/L&D data (work history, credentials, performance goals) and targeted approaches like industry benchmarking or skill inventories to view your skills landscape comprehensively.

↳ Establish robust governance frameworks—Develop clear roles and responsibilities for managing and updating your skills taxonomy, ensuring adequate resources for long-term sustainability. Create consistent procedures for defining, categorising, and utilising organisational skills, particularly in recruitment, training, and mobility practices. Regularly review and update the taxonomy to align with emerging skills and organisational needs, keeping it practical, scalable, and usable for diverse applications—from career development to strategic workforce planning.

↳ Integrate skills into all talent processes—Embed skills and proficiency levels in job descriptions, distinguishing between required and preferred skills while removing unnecessary formal degree requirements where appropriate. Develop tailored learning pathways aligned with the skills taxonomy to address gaps, offering accessible resources and hands-on opportunities to reinforce development. Consider implementing skills-based pay structures that recognise and reward skill mastery and advancement, reinforcing the value of continuous learning.

↳ Build cross-sector partnerships—Establish strategic collaborations between businesses, educational institutions, and governments to align curricula with evolving industry demands. These partnerships ensure that education and training programs equip incoming talent with the specific skills needed for labour market success. For businesses, this means engaging with education providers to help shape learning outcomes; for governments, it involves creating policy frameworks that facilitate these collaborations and incentivise skills-based approaches across sectors.

↳ Leverage appropriate technology solutions—Select data management systems that match your organisation's maturity level and needs, from basic spreadsheet tracking to AI-powered platforms. Ensure these systems are user-friendly, regularly updated, and offer robust reporting capabilities. For more advanced implementations, consider Application Programming Interfaces (APIs) that facilitate integration with talent acquisition platforms, performance management systems, and training tools, creating a seamless skills infrastructure across your organisation.

🔗 CONCLUSION

The Global Skills Taxonomy Adoption Toolkit marks a significant advancement in addressing worldwide skills and talent shortages by providing a practical framework for establishing a common skills language. Through its three-phase approach—identifying priorities, assessing critical skills, and setting up governance—the toolkit offers a comprehensive roadmap for organisations at any stage of their skills journey. By implementing the strategies outlined in the tool, businesses can enhance workforce planning, broaden talent pools, and increase adaptability. At the same time, governments can develop more effective workforce policies and educational institutions can better align their offerings with market needs. Though challenges exist, including technological integration and stakeholder alignment, the potential benefits of adopting a skills-first approach are substantial: improved talent mobility, reduced skills gaps, and ultimately, a more resilient, future-ready workforce capable of navigating ongoing economic and technological change.

🎯 KEY TAKEAWAY

Adopting a common skills taxonomy isn't just an HR initiative—it's a strategic imperative that enables organisations to identify, develop, and deploy talent precisely. This creates adaptable workforces that can thrive amid rapid technological and economic change.

ETHICAL CULTURE & LEADERSHIP

🌿 ETHICAL CULTURE & LEADERSHIP 🌿 | The Impossible Role: Rethinking Leadership Amidst Rising Expectations | DDI Global Leadership Forecast (2025). Leadership has never been more critical yet challenging in today's complex business landscape. DDI's eleventh Global Leadership Forecast reveals how organisations with strong leadership development strategies can transform current leadership struggles into strategic advantages, directly impacting organisational resilience, talent retention, and financial performance.

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✨ OVERVIEW

The Global Leadership Forecast 2025, DDI's eleventh leadership study spanning more than 24 years, delivers a comprehensive analysis of the state of leadership based on responses from 2,185 human resource professionals and 10,796 leaders across 2,014 organisations in over 50 countries. The research reveals a troubling paradox: leadership has never been more critical, yet leaders struggle under unprecedented pressures. Trust in immediate managers has plummeted from 46% to 29% in just two years, while bench strength remains alarmingly low at 20%. Frontline leaders disconnect from organisational purpose as stress levels and retention concerns mount. Despite these challenges, organisations that strategically invest in leadership development see measurable improvements in leader effectiveness, engagement, and organisational performance. The report provides evidence-based approaches to strengthen leadership quality, rebuild trust, and transform leadership strategy into a competitive advantage.

🧩 CONTEXT

Today's business landscape demands more from leaders than ever before. While traditional metrics like profitability remain essential, an organisation's health increasingly depends on its leadership quality. The convergence of global disruptions—pandemic recovery to AI integration—has fundamentally redefined workplace expectations and tested organisational resilience. Leaders now shoulder the immense responsibility of creating environments where people feel respected and valued while navigating rapid change, fostering innovation, and delivering business results. Yet this expanding role comes as leaders report increased stress, diminishing trust, and inadequate development, creating a self-perpetuating crisis that threatens to undermine the leadership pipeline precisely when effective leadership matters most.

🔍 WHY IT MATTERS

↳ Trust in leadership has reached a critical inflection point—Trust in immediate managers took a dramatic nosedive from 46% to 29% between 2022 and 2024, while trust in senior leaders remained stagnant at 32%. This trust deficit reflects broader societal transformations where economic shocks, AI advancement, and increasing awareness of power dynamics have made employees more likely to scrutinise leadership decisions. The consequences are severe: without trust, employees are less likely to embrace feedback, coaching, or development opportunities, creating barriers to organisational growth and talent development.

↳ A leadership exodus threatens organisational resilience—With 71% of leaders reporting significant increases in stress and 40% contemplating leaving their leadership roles entirely, organisations face a potential structural breakdown in their leadership pipeline. This talent drain jeopardises strategic continuity, organisational memory, and competitive positioning. The primary catalyst for this escalating stress is a pervasive sense of time scarcity, with only 30% of leaders feeling they have sufficient time to execute their responsibilities with the depth required.

↳ Frontline leaders are increasingly disconnected from organisational purpose—The divergence in sense of purpose between organisational levels poses a strategic threat, with frontline leaders experiencing a 20% decline in purpose since 2020 while C-suite purpose has increased to 67%. This widening gap threatens to derail organisational mission alignment precisely at the level where most employee interactions occur. Frontline leaders are 1.5X less likely than other leaders to trust senior leadership and 1.3X less likely to believe their company makes a positive difference.

↳ Leadership bench strength remains critically weak—While bench confidence has rebounded slightly to 20% (from 11% in 2020), 80% of organisations still lack confidence in their leadership pipelines. This vulnerability threatens organisational agility and sustainability, mainly as high-potential individual contributors show increasing intentions to depart, rising from 13% in 2020 to 21% in 2024—signalling trouble for future leadership succession.

💡 KEY INSIGHTS

↳ Organisations with strong leadership development see quantifiable advantages—Organisations that develop strong leadership benches are 3.5X more likely to be awarded as most admired companies, 2.9X more likely to be recognised as top financial performers, and 2.8X more likely to outperform industry peers financially. These metrics transform leadership development from a "nice-to-have" initiative into a strategic imperative with measurable business impact.

↳ Future-focused leadership skills remain profoundly underdeveloped—Despite 83% of HR organisations predicting a surge in new leadership capabilities needed within five years, critical skills remain undeveloped. While 64% of leaders identify setting strategy as essential, only 37% have received training. Similarly, 61% see managing change as critical, but just 36% have been developed in this area. This gap in future-focused leadership capabilities directly impacts organisational readiness for upcoming challenges.

↳ The employee experience directly influences perceptions of leadership quality—Leaders who believe their organisation delivers a best-in-class employee experience are 19X more likely to rate leadership quality as high. Additionally, leaders are 12X more likely to rate leadership quality highly when organisations prioritise employee well-being. This suggests that objective leadership quality may matter less than how leaders make people feel about their workplace experience.

↳ AI adoption success depends heavily on senior leadership trust—Frontline managers are 3X more likely than senior leaders to be concerned about AI's impact, creating a significant perception gap. This finding connects to broader trust issues, as leaders who trust their senior leadership are 2.2X more likely to feel excited about using AI at work. Without effectively addressing trust concerns, organisations risk resistance to AI implementation and diminished return on technology investments.

↳ Diversified leadership development approaches yield more substantial results—Organisations that use five or more development approaches are 4.9X more likely to report improved leadership capabilities. The most effective development ecosystem combines coaching from current managers, internal coaching, self-paced learning, assessments, and AI-enabled learning experiences. This finding challenges the notion that organisations must choose between learning approaches, suggesting instead that an integrated, multi-faceted approach delivers superior outcomes.

🚀 ACTIONS FOR LEADERS

↳ Transform the leadership development strategy from episodic to ecosystem—Move beyond the debate between coaching or formal training by creating a comprehensive development ecosystem that combines multiple approaches. Implement continuous skill mapping using sophisticated assessment tools to dynamically track leadership competencies in real time, while providing targeted interventions addressing specific skill gaps. This approach enables organisations to design data-driven development strategies calibrated to organisational needs.

↳ Rebuild trust through systematic behaviour change—Leaders can strategically rebuild trust by consistently practicing four key behaviours: listening and responding with genuine empathy, encouraging others to speak up without fear of reprisal, sharing the rationale behind decisions transparently, and encouraging others to challenge established ways of working. When managers actively support development, employees are 11X more likely to trust them. When they provide consistent feedback, trust increases 9X.

↳ Address purpose disconnection among frontline leaders—Implement specific strategies to strengthen the purpose for frontline leaders, including prioritising well-being support systems, deepening customer connections to demonstrate impact, developing interpersonal skills, transforming senior leaders into purpose ambassadors, and enhancing employee experiences. Purpose-driven frontline leaders are 17X more likely to perceive their organisation positively and 3X more likely to stay with it.

↳ Create collaborative AI implementation frameworks— Bridge AI perception gaps by involving frontline managers early in strategy development. Establish cross-functional AI-adoption teams with representation from every organisational level, develop personalised AI skill development programs, and create mentorship networks. Senior leaders who build trust are 2.8X less likely to encounter resistance to AI, while frontline leaders are 2.4X more likely to feel enthusiastic about AI when senior executives work cohesively.

↳ Strengthen succession planning focusing on high-potential development—Implement an inclusive talent identification process that looks beyond traditional metrics, clarify critical leadership roles with precise skill requirements, and deeply understand high potentials' development needs through targeted assessments. High-potential talent is 3.7X more likely to leave without regular development opportunities and 2.7X more likely to depart if their manager is not an effective coach, making development a retention imperative.

🔗 CONCLUSION

The Global Leadership Forecast 2025 reveals the scale of organisations' leadership challenges and the transformative potential of strategic leadership development. Organisations that create compelling leadership experiences can convert current vulnerabilities into competitive advantages, directly impacting financial performance, innovation capacity, talent retention, and organisational resilience. By focusing on rebuilding trust, connecting leaders to purpose, developing future-focused capabilities, and creating comprehensive development ecosystems, organisations can navigate the paradox of increasingly complex leadership roles in turbulent times. Rather than an insurmountable challenge, the current leadership landscape represents a critical inflection point for organisations to fundamentally reimagine their approach to developing, supporting, and retaining leaders.

🎯 KEY TAKEAWAY

Leadership is not about maintaining control but about continuously earning trust—organisations that invest in leadership development as a strategic priority strengthen their talent pipeline and create a resilient, adaptive foundation capable of thriving amid unprecedented change and uncertainty.

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