In a startling revelation, the Global Leadership Forecast 2025 by Development Dimensions International (DDI) highlights a growing leadership crisis. According to the report, 40% of leaders globally have contemplated stepping away from their roles to prioritize their well-being, signaling a potential collapse in leadership pipelines.

The study, the largest and longest-running of its kind, surveyed 2,185 HR professionals and 10,796 leaders across 50 countries and 24 industries. Its findings underscore vulnerabilities in leadership structures, ranging from declining trust to insufficient development opportunities, amidst economic turbulence and workplace polarization.

One of the most alarming findings of the report is the plummeting trust in immediate managers, now at just 29% — a sharp 37% drop since 2022. The credibility gap is most pronounced among older employees aged 50-64, highlighting a growing generational divide in workplaces already strained by skepticism toward AI and evolving employee expectations.

“Leadership is becoming an increasingly difficult path to follow,” said Stephanie Neal, Director of DDI’s Center for Analytics and Behavioral Research. “Economic volatility, AI skepticism, and generational differences have amplified the challenges. However, many leaders have found success in turning stress into growth through self-reflection, open discussions, and continuous learning.”

The report also exposes a troubling trend among high-potential employees. Their intention to leave their roles has surged from 13% in 2020 to 21% in 2024, with those lacking growth opportunities being 3.7 times more likely to quit. This exodus of top talent threatens organizational resilience, as companies struggle to maintain robust talent pipelines.

“Paradoxically, retaining top talent is even more critical during economic turbulence,” noted Dr. Tacy M. Byham, CEO of DDI. “While the Great Resignation has passed, more than half of CEOs now rank talent recruitment and retention as their top priority for the next five years. Acting on this realization is crucial for long-term organizational resilience.”

Another critical finding is the significant gap in future-focused skills. Leaders identified “setting strategy” and “managing change” as their two weakest areas, yet only 22% of HR teams prioritize these skills. Without urgent intervention, companies risk stagnation and an inability to adapt to evolving business needs.

The report also highlights a leadership perception gap around AI. Frontline managers are three times more likely than senior leaders to harbor concerns about AI's impact. This disparity reflects broader challenges in achieving technology buy-in and trust at all organizational levels.

Successful AI integration, according to the study, requires not only technological investment but also a cultural transformation led by empathetic leadership.

As the world grapples with economic uncertainty, the report emphasizes the need for a recalibration of leadership strategies. Organizations must prioritize well-being, bridge skill gaps, and foster trust to retain talent and future-proof their leadership pipelines.

DDI’s findings are a clarion call for companies to act decisively. Leaders who embrace innovation, empathy, and development can transform stress into resilience, ensuring they are not just surviving but thriving in an increasingly volatile business landscape.