A new report by leadership consultancy DDI noted serious challenges in leadership development across Europe, with trust in business leadership at an all-time low.
The Europe Leadership Report 2025 draws insights from 428 leaders and 250 HR professionals across 18 countries and found concerning gaps between the skills leaders need and the training organisations provide.
According to the report, 80 percent of HR organisations predict a surge in demand for new leadership capabilities over the next five years. However, only 22 percent of these organisations have prioritised addressing the most critical skill gaps in their development plans.
Key leadership skills such as strategic planning, employee engagement, and decision-making are largely underdeveloped. For instance, while 55 percent of leaders identified setting strategy as essential, only 13 percent reported receiving relevant training. Similarly, engaging employees and identifying future talent are deemed critical by 55 percent and 48 percent of leaders, respectively, yet only 15 percent and 8 percent of leaders have undergone development in these areas.
Stress and Burnout Threaten the Leadership Pipeline
Bruce Watt, Ph.D., Senior Vice President at DDI, spoke of the importance of targeted development, saying, “When leaders are stressed and burning out, it creates a dangerous ripple effect throughout organisations. The solution lies in how we develop and support our leaders. Organisations that invest in targeted skill development and give their leaders the time and tools to succeed don’t just prevent burnout – they create resilient leadership teams that drive sustainable business performance.”
The report identifies stress and burnout as major risks to Europe’s leadership talent. Over half (54%) of leaders reported a significant increase in stress since taking on their roles, with 72 percent expressing concerns about burnout. Alarmingly, 40 percent of these leaders have considered stepping down from leadership roles altogether. Lack of time is another key factor, as only 19 percent of leaders said they have sufficient time to fulfil their responsibilities.
“The choice is clear: invest in protecting and developing leaders today, or risk compromising organisational health and performance tomorrow,” Watt added.
