Real challenges facing Leaders today

The real challenges facing leaders today, and what businesses need from them.

Leadership has never been easy, but right now, it feels particularly tough. The pace of change, the demands of employees and the uncertainty in markets are combining to test even the most experienced executives.

So, what are the real challenges leaders are facing today, and what do businesses most need from them?

Recent research paints a clear picture: leaders are struggling with confidence, trust, wellbeing, and change fatigue — while businesses are crying out for clarity, empathy, and purpose.

Trust and confidence gaps

One of the biggest issues is trust. According to HR Review (Jan 2025), trust in business leadership has hit record lows. Employees are increasingly sceptical of decisions on issues such as remote work, digital transformation and organisational change.

At the same time, leaders themselves are feeling shaky. HR Review also noted that many senior leaders admit to feeling unprepared for the challenges ahead. The speed of disruption, from the likes of AI to geopolitics, makes confident clear decision making more difficult.

When leaders hesitate, teams hesitate.

“Trust in business leadership has hit record lows.” – HR Review, Jan 2025

Change fatigue and overload

Change is constant, but today it feels relentless. Leaders are trying to deliver results while juggling technological disruption, inflation pressures and regulatory shifts. This results in change fatigue. MDI Training (2025) described how leaders feel 'trapped between delivering immediate business results and investing for long term transformation.' Employees, meanwhile, can be resistant to yet another change programme or initiative.

Skills gaps in strategy, digital and ethics

Leadership development isn’t keeping pace with reality, fact, and its not acceptable. HR Review found that many programmes fail to build skills in areas that matter most, including digital literacy, strategic thinking in volatile environments and ethical decision making around AI and sustainability. Further I would add from experience that more simple skills around feedback and having difficult conversations are these matters are still challenging and troubling leaders.

The Forbes Business Council (Aug 2024) identified digital transformation and ethical leadership as two of the top 20 challenges for the next generation of leaders. Simply delegating tech knowledge to specialists is no longer acceptable. Senior leaders must be capable of making informed, strategic calls about technology and its impact.

Talent, retention and the leadership pipeline

Finding and keeping good people is still near the top of every leader’s list. Employees expect more flexibility, growth opportunities, coaching and purpose. MDI Training confirmed retention as one of the three biggest global challenges.

The leadership pipeline, and succession planning, is also a problem. HR Review highlighted that many organisations do not have strong future leaders ready to step up. Without deliberate development and succession planning, businesses risk serious gaps when today’s leaders move on. Yet, businesses are often unwilling to pay this the attention it requires.

Wellbeing and mental health

Burnout is a shared risk. Gearing for Growth (2025) listed stress, wellbeing and work–life balance as barriers to performance. Leaders are caught in the middle as they are expected to hit results, while also supporting mental health in their teams. What a conundrum, if they push too hard, they risk breaking people. Yet, if they fail to push, the business stumbles.

Meaning, purpose and connection

As AI and automation reshape jobs and opportunities, employees want to know why their work matters. The Forbes Coaches Council (June 2025) stressed that 'people want to feel their work has impact and aligns with values.'

This means leaders must go beyond instructions. They need to be prepared to engage in emotions and anchor their teams in purpose and values, and communicate it (genuinely) authentically.

“Authentic leadership is the single most important factor in rebuilding trust at work.” – Forbes, Jan 2025

Economic and external uncertainty

Add into the mix matters such as inflation, supply chain risks, poly crisis and geopolitical instability, and you’ve got a tough backdrop for leaders and leadership. Planning is harder and forecasts are shakier. Leaders must balance confidence with adaptability and build resilience and the capability to lead change into both strategy and culture.

What businesses need from leaders right now

The themes are clear. Businesses need leaders who can....

• Provide clarity and stability in uncertain times.

• Lead with ( genuine) authenticity and trustworthiness.

• Show empathy and care for people’s wellbeing and growth.

• Develop digital and ethical literacy to guide smart choices.

• Demonstrate resilience and adaptability when plans change.

• Inspire with purpose driven storytelling that connects people to meaning.

  
  

Final thought

Leadership today isn’t about being perfect, its much more about being clear, human, present and purposeful in the face of uncertainty.

Real qualities such as trust, empathy, resilience, emotional intelligence and authenticity are what businesses are hungry for. And these may be the difference between organisations that stumble in the coming years and those that remain relevant.

Question for you. Which of these challenges do you see most in your business right now and what do you most want from your leaders?

If you wish to discuss any of these points, or more importantly, discuss your needs, please message me for a chat.