AGlobal Leadership ForecastReport TheEurope Leadership Report 2025by DDI is part of the renownedGlobal Leadership Forecastseries, thelongest-running global study of leadership. This regional report focuses on insights specific to Europe, drawing from250 HR professionals and 428 leaders across 18+ countries. It highlights the unique challenges and opportunitiesfacing leaders in Europe while identifying the best talent practices shaping the region’s future. As a key componentof the broader global research, this report provides European organisations with actionable trends to strengthen theirleadership strategies within a global context. Key demographics are listed below. INTRODUCTION Europe’s Leadership at a Crossroads:Are Leaders Prepared for Tomorrow’s Challenges? Across Europe, organisations face a pivotal moment in leadership development. Thechallenges and disruptions of recent years—from economic turbulence to technologicaladvancements—have left many questioning the readiness of their leadership pipelines.As businesses navigate an evolving global landscape, the stakes for effective leadershiphave never been higher. In my conversations with CHROs across Europe over the past year, I've noticed a strikingshift. While they once focused primarily on traditional leadership competencies,they're now equally concerned with leaders' ability to maintain resilience and inspiretheir teams through constant change. One CHRO recently told me, “We used to developleaders for stability—now we need to develop them for perpetual transformation.” Thisobservation resonates deeply with what we're seeing across industries. Our research confirms that leadership readiness remains a pressing concern, with69% of HR professionals expressing doubts about their organisations' future leadershipcapabilities. This uncertainty reflects broader challenges in developing and retainingstrong leaders who can drive innovation and growth, especially as traditional leadershipskills evolve. Future-focused capabilities like setting strategy, engaging employees, and identifyingand developing future talent are becoming increasingly critical, yet only 29% of HRteams are actively developing these skills. This gap between current capabilities andfuture needs signals an urgent call for transformation in how organisations approachleadership development. Organisations now have a critical opportunity to transform their leadership developmentstrategies.By anticipating tomorrow’s challenges and taking proactive steps today,organisations can build more resilient leadership pipelines that drive innovation, agility,and sustainable success. In this report, we examine where leaders are struggling, the gaps that need urgentattention, and the strategic actions organisations can take to strengthen theirleadership pipelines.What will it take to restore trust, ignite purpose, and equipleaders with the future-focused skills they need to succeed?Through evidence-basedinsights, this report offers organisations a practical pathway to transform leadershipinto a competitive advantage—ensuring Europe’s leaders are not just prepared to faceuncertainty but to thrive in it. Table of Findings A Leadership Exodus? The Impact of Stress and Burnout.................................... 5Fifty-four percent of leaders report increased stress, with 40% consideringleaving as a result of stress, putting the leadership pipeline at significant risk. The Continuing Leadership Credibility Crisis......................................................... 7Trust in immediate managers remained critically low, shifting from 34% to36%,highlighting a continuing lack of confidence in leaders. For Frontline Leaders, the AI Challenge Is Built on Trust...................................... 9Frontline managers are3.6Xmore likely to be concerned about the impact of AIthan their senior counterparts,underscoring the need to build trust to ensuresuccessful adoption. Mind the Purpose Gap: Frontline Leaders Feel Left Behind................................ 11Purpose is a critical driver of leadership engagement, yet only 37% of frontlineleaders feel a strong sense of purpose compared to 51% of senior leaders. Bench Strength Shows Signs of Recovery........................................................... 13Confidence in the leadership bench rose to 31%, but most organisationsremain uncertain about their leadership pipeline. Future-Focused Skills Fall Critically Behind......................................................... 15Eighty percent of HR organisations predict a surge in future leadership skills needed,but critical skills remain profoundly underdeveloped. A Leadership Exodus?The Impact of Stress and Burnout As Leaders Lack Time, Burnout and Attrition Loom Large Stress among leaders is surging, with 54% reporting a significant increase in their stress levels since stepping into theircurrent role. The persistence of high stress since 2022 signals a critical challenge for leadership stabil