Nearly three-quarters of employees believe their leaders need to be better equipped to meet today’s challenges.

Our latest research reveals a crisis in leadership and uncovers the most important characteristics employees seek in their leaders.

In an era defined by constant and significant disruption, employees are increasingly looking to business leaders for guidance and clarity.

President Trump’s return to office and implementation of protectionist economic policies has fuelled instability across global markets. Add to this the threat of a full-scale trade war, escalating conflicts, climate volatility, social inequality, and the rapid advance of AI – and it’s clear that today’s leaders aren’t just running business as usual. They’re navigating a tumultuous global landscape.

But how well equipped are leaders to face these new challenges and, crucially, what are the qualities that employees look for in their leaders?

In our latest research, we posed both these questions to desk-based employees of large organisations – and the answers are striking:

Nearly three quarters (70%) of 1,001 desk-based employees of large companies say their senior leaders are not very well equipped to lead effectively in an increasingly chaotic global business environment.

This finding reveals there is a distinct lack of confidence in the abilities of those in senior leadership teams to adequately meet the challenges of today’s world. Levels of confidence vary according to respondents’ gender, industry and role, but the message is consistent: leaders are falling short of what this moment demands.

Our research also reveals the qualities employees value the most in their senior leaders – with two characteristics rising to the top: ‘clear communication’ and ‘a clear purpose, beyond just making money’. These results echo a growing demand for leadership that is not only decisive, but also meaningful.

But why do these insights matter?

Consistent research indicates that when employee confidence erodes, workplace performance suffers, culture weakens, and talent retention drops.

The results of our survey offer a rare and timely glimpse into how leadership is being experienced on the ground – and what qualities employees really need from senior leaders in times of great uncertainty.

The results of our survey offer a rare and timely glimpse into how leadership is being experienced on the ground – and what qualities employees really need from senior leaders in times of great uncertainty.

In this piece, we’ll reveal the most important traits of good leaders, and provide five essential strategies leaders must adopt now to lead effectively in this moment – when trust is fraying, expectations are shifting, and the stakes have never been higher.

These strategies will see today’s underperforming leaders become tomorrow’s great ones. Leaders who don’t retreat into short-term thinking or strongman posturing, but step up with clarity, conviction, and a responsibility that extends beyond the bottom line.

A reality check for leadership

Trust in leadership is under pressure.

Recent studies – including Edelman’s Trust Barometer and The Purpose Gap from Given, part of Anthesis – reveal a growing disconnect between what leaders say and what employees experience.

Edelman reports a 21% rise in distrust towards business leaders over the past four years. Meanwhile, The Purpose Gap found that over half (52%) of employees believe there’s a clear gap between the stated purpose of an organisation and its actual behaviour.

Our latest research adds further weight: less than a quarter (23%) of employees in large organisations believe their leaders are ‘very well equipped’ to handle today’s turbulent business environment. Nearly half (48%) think their leaders are only ‘somewhat’ prepared, and one in five (22%) hold a distinctly negative view.

It is clear that in the eyes of employees, senior leaders in large businesses have some work to do.

There were some differences between industries, which can be explored in the graphs on the following page.

Our research suggests, out of 11 industry categories, the three sectors with the lowest confidence in their leaders were:

• Legal
• Sales & Marketing
• Manufacturing & Utilities

By contrast, respondents in the following sectors displayed the highest confidence levels:

• IT & Telecoms
• Finance
• Architecture, Engineering & Building

These are categories that are at the sharp end of the changes in the world, so it is positive to see confidence that the right people are guiding the ships.

Qualities for effective leadership

It’s indisputable that over the last decade, the role of business leaders has become more complex. But as mounting evidence suggests, the majority of leaders do not have all of the tools they need to lead effectively.

As part of our research, we asked what employees look for in their leaders – and it’s these findings, which perhaps offer the most value. They provide a vital roadmap for those ready to lead with greater impact.

Our poll shows one quality stands head and shoulders above the rest: ‘clear communication’.

When asked to choose the top three most important skills a senior leader should have, nearly half (43%) of employees said they valued communication above other qualities. Employees want to hear from their leaders on both the good and bad to provide reassurance and a sense of unity in times of uncertainty.

The second most-valued quality was ‘a clear purpose, beyond just making money’ (28%). Despite the short-term turmoil, people are looking for leaders with vision and conviction they can get behind. The ‘we’re here to make money’ mantra of old just doesn’t cut it in terms of the incentivisation of a workforce.

In fact, ‘making as much profit for the company as possible’ ranked last out of a choice of 11 characteristics, with only 13% citing it as a desirable leadership trait. Employees are sending a powerful signal that the leaders who inspire trust and commitment are those who stand for more than the bottom line.

There are also important differences across demographics. Women placed even more emphasis on communication and purpose, while men were more likely to value tough decision-making.

These insights aren’t just interesting – they’re actionable. They give today’s leaders a blueprint for building trust and motivating their teams. But to truly lead effectively, senior leaders must approach these findings with honesty and integrity. It takes courage to reflect on your own personal qualities – and where they may be falling short.

By turning the performance lens on themselves, leaders can use these findings not just as feedback, but as a roadmap for growth – and a guide to becoming the kind of leader their teams truly need.

1. No compromise on performance

With the UN’s ‘Decade of Action’ at its halfway point, some organisations are already scaling back their ambition as the 2030 targets begin to draw closer. As a result, business leaders who want to maintain a progressive, profitable long-term agenda will need to focus relentlessly on commercial performance.

Sustainability and social responsibility cannot be an adjunct, a business cost or merely a campaign. Those who lead successfully in this arena do so by building strong business cases that remove any semblance of compromise.

Today’s leaders need to demonstrate to all stakeholders – but especially to the investor community – that long term-business planning depends on building resilience and sustainability. This isn’t about being ‘woke’. It’s about being commercially resilient in the future. It’s about being ready for what’s next.

The good news is there’s mounting proof that you don’t have to choose between profit and purpose. The Word Economic Forum’s Alliance of CEO Climate Leaders achieved a collective 10% reduction in emissions, while simultaneously increased their revenues by 18% in just three years.

And the Sustainability for Business Resilience Report 2024 shows nearly 9 in 10 business leaders agree: integrating sustainability strengthens their organisation’s resilience.

Critically, leaders must tell this story of sustainability through a lens of uncompromising commitment to business performance.

Our latest research indicates that effective communication is the most vital of tools in demonstrating intent and commitment to performance both internally and externally.

This isn’t greenhushing – it’s a smarter, more commercial way of framing sustainable performance. Using language centred on efficiency, innovation, and growth helps stakeholders see the value in a long-term agenda.

We’re already seeing leaders strike this balance. Among them, Jesper Brodin and his team at IKEA show what’s possible when you treat sustainability as a performance driver – not a cost. As Brodin says: “It is good business to be a good business.”

2. New agility

Agility is often cited as essential to modern leadership – and with good reason. Today’s leaders are operating in a state of near-constant disruption, where the ability to adapt quickly is no longer a nice-to-have but a baseline expectation for C-suite members.

But true agility goes beyond fast decisions. It requires continuous learning, humility, and self-awareness. This can be difficult to accept for those at the height of their professional careers.

Our research found that ‘being open to learning’ ranks among the top five qualities employees value in senior leaders – a reminder that even those at the top must remain students of the world around them.

Agility has in the past been used as an excuse for opting out of the longterm agenda. This is not a mandate for compromise or retreat.

The best leaders are those who adapt in the moment while staying focused on sustainable performance. They surround themselves with diverse, informed voices – making bold decisions rooted in insight, not instinct.

3. Enable followership

Although leadership is an idea that dominates in organisations, it is a narrow concept: focused on individuals rather than the cultures they create. In our experience, ‘followership’ is just as critical in organisational outcomes.

To be clear, the concept of followership is not about passive obedience, but about engaged, values-driven people who actively support and shape the culture around them.

The idea of ‘exemplary followership’ highlights the latent potential of people within organisations who aren’t just led, but who think critically, act with purpose, and take ownership. More recent studies indicate that strong followership directly improves leadership effectiveness.

Yet this sits counter to the current image being projected of leadership being about strong individuals and concentrated power.

In a world where populist and egoistic traits have become mainstream and almost expected, senior leadership teams will need to challenge this narrative — replacing it with individual autonomy, empowered teams, and collective intelligence.

To encourage followership, tools such as effective communication, offering and receiving support and seeking out diverse perspectives consistently rank highly in leadership attribute surveys – including in our own latest research.

Using a framework such as the Inner Development Goals (pictured below), leaders can assess and develop the inner skills their teams need – like empathy, resilience, and critical thinking – to build more conscious, collaborative, and purpose-driven cultures that enable sustainable performance and positive impact.

When done well, ‘exemplary followership’ doesn’t just support leadership. It builds the next generation of it.

4. Stay close to the action

Our new research reveals that more than three-quarters of employees believe their leaders aren’t very well equipped to meet today’s challenges. This echoes findings from our recent Purpose Gap Report, which uncovered a similar disconnect – this time between how C-suite leaders perceive their organisation compared to how middle managers experience it.

The message? Leaders are often too far from the reality of day-to-day operations.

The mandate for sustainability is often set from senior executives, fully bought in and incentivised to deliver. But their success hinges on mid-level executives – “the cohort of hidden actors and unsung heroes” as Paul Polman et al. described them in a recent article written for the Harvard Business Review.

As our own research demonstrates, it’s this cohort who crave a clear purpose, beyond just making money. In our poll, this quality was selected as the second most important leadership value after communication.

So how do business leaders provide that ‘clear purpose’ middle managers are looking for to help them deliver vital initiatives?

To meet that need, leaders must get closer – both to the work, and to the people delivering it.

This is particularly relevant in sustainability where complex regulation and reporting creates layers between executives and the reality of the work going on in their businesses.

Agile leaders who have taken the time to understand the complex sustainability agenda will be able to tackle on-the-ground challenges, building trust, sharpening decision-making, and helping spot gaps early.

It also means knowing your people: what support, skills or freedom do your middle managers need to succeed? How do you empower them to lead confidently without fear of failure or repercussion?

The most effective leaders model the behaviours they want to see. They lead with clarity, connect across teams, and create the conditions for others to thrive.

Again, clear communication, persuasive business cases and incentives are key to this.

5. Own your legacy

As we hit the halfway mark in the 2020s, a decade heralded as critical in the future of humanity, many leaders are thinking about what they will leave behind.

Leaders who can understand and plan for a legacy will be better able to navigate the complexities of the changing environment with the courage required to make difficult choices and build something that outlasts their tenure and creates real, lasting change.