Modern managers are dealing with a workplace radically different from that of a decade ago. Artificial intelligence (AI) and automation are transforming jobs; employees demand flexibility, purpose and inclusive workplaces; and geopolitical and environmental disruptions require rapid adaptation. Research from Korn Ferry, IMD, DDI and other organizations suggests that the leadership competencies that worked in the past are no longer enough[1]. In fact, a 2024 survey shows that trust in managers has plummeted from 46 % to just 29 % in two years, and 77 % of organizations report they lack sufficient leadership depth. To thrive in this environment, managers must cultivate a blend of human‑centric and tech‑savvy capabilities. This blog explores the top three leadership skills that research shows every manager will need to succeed in 2025 and beyond.

1. Emotional Intelligence and Human‑Centred Leadership

While AI can automate tasks and crunch data, it cannot replace the human ability to empathize and build trust. Forbes notes that emotional intelligence (EQ)—the combination of self‑awareness, self‑management and relationship management—remains the single most important leadership trait for 2025[2]. Leaders with high EQ foster inclusive cultures and boost job satisfaction and employee engagement[3]. Gallup’s meta‑analysis found that teams with high engagement show 41 % fewer quality defects, 37 % less absenteeism and 21 % higher productivity[4]. Horton International’s research further reveals that engaged teams achieve 23 % higher profitability and 18 % greater productivity[5].

The need for empathy is reinforced by sobering statistics: trust in managers has declined sharply, and 72 % of leaders report feeling “used up” at the end of the day[6], suggesting rising burnout across leadership ranks. Employee wellbeing directly affects business results; the World Health Organization estimates that poor mental health costs the global economy $1 trillion annually in lost productivity[7]. Meanwhile, the Edelman Trust Barometer indicates that 62 % of people expect CEOs to lead on societal issues, and 89 % demand visible action on environmental, social and governance (ESG) challenges[8]. These figures underscore that leadership today is as much about ethics and empathy as it is about hitting metrics.

How to develop emotional intelligence

Managers can strengthen EQ and build human‑centred organizations by:

Practicing active listening – regularly soliciting and acting on team feedback, fostering psychological safety and acknowledging individual strengths.
Leading with vulnerability and authenticity – admitting when they don’t have all the answers and sharing lessons learned; research shows that transparent communication can boost job satisfaction twelve‑fold[9].
Prioritizing wellbeing – modeling healthy work habits, advocating for mental‑health support and flexible working arrangements. Burnout is a growing concern, with 72 % of leaders feeling exhausted[6].
Cultivating inclusive cultures – organizations with diverse leadership teams are 36 % more likely to achieve above‑average profitability[10]. Inclusive leaders intentionally seek diverse perspectives, address bias, and ensure that every voice is heard.

Empathy does not weaken authority; it strengthens it by building trust and loyalty. As human expectations rise, managers who demonstrate genuine care will inspire high performance and become employers of choice.

2. Digital and AI Literacy

The second indispensable skill for managers is technological literacy. A Statista analysis cited by Forbes found that 68 % of employers consider technological literacy one of the most critical competencies for leaders[11]. The era of delegating technology decisions exclusively to IT is over; leaders must actively understand and guide AI and automation initiatives[12].

Horton International highlights that 70 % of organizations will implement structured automation by 2025, up from 20 % in 2021[13]. Additionally, the World Economic Forum projects that 97 million new roles will emerge and 85 million may be displaced by technological change[14]. This implies that leaders need to be not only fluent in current tools but also able to anticipate how automation will reshape talent needs and workflows. Research suggests that AI‑powered leadership training can improve skill acquisition by 20 %, and digital‑savvy leaders drive significantly higher revenue growth.

How to build digital and AI literacy

Managers can enhance their tech competency by:

Learning AI fundamentals – understanding key terms (e.g., machine learning, generative AI), potential use cases and ethical considerations. Regular workshops or micro‑learning modules can make the learning manageable[15].
Partnering with experts – collaborating with data scientists and technologists to co‑design solutions and assess AI risks. Doing so helps leaders bridge the gap between innovation and implementation[16].
Implementing data‑driven decision making – using analytics dashboards and predictive models to guide strategy. This involves cultivating a culture where data informs decisions but human judgment—rooted in EQ—provides context.
Promoting responsible AI – ensuring transparency in algorithmic decisions, addressing bias and aligning technology deployments with organizational values. Transparency is critical; 89 % of employees expect leaders to clearly communicate how AI systems are used[17].

Tech fluency allows managers to reimagine processes, empower their teams with the right tools and remain competitive in a digitized economy. Without it, leaders risk falling behind and mismanaging change.

3. Agility, Adaptability and Continuous Learning

In a world of relentless change—whether geopolitical upheavals, pandemics or rapid technological cycles—leaders must be agile learners. Forbes emphasizes that modern leadership requires the ability to learn, unlearn and relearn, and that learning agility is a “superpower” enabling companies to pivot quickly[18]. The IMD Faculty notes that adaptability, once considered optional, has become one of the most important leadership skills[19]. Leaders must adapt to hyper‑competitive markets, geopolitical shifts and climate challenges while working outside their comfort zones[20].

Research demonstrates how urgent this skill gap is: 77 % of organizations lack sufficient leadership depth, and 71 % of Millennials would leave within three years if leadership development is lacking. Companies investing in leadership development see 25 % better business outcomes, and internal promotions are 20 % faster and less risky than external hires. Meanwhile, Gartner’s CEO survey indicates that productivity will become a top‑five strategic priority by 2025, reinforcing the need for nimble strategies[21].

Strategies for developing agility

Embrace micro‑learning and continuous improvement – set aside time for short learning bursts each day or week. Forbes recommends leaders dedicate at least 10 minutes daily to new insights or skills[18].
Plan for change – create flexible roadmaps with clear timelines, and regularly review progress to ensure readiness for disruptions[22].
Encourage experimentation and innovation – give teams autonomy to test new ideas and view mistakes as learning opportunities. Over 70 % of surveyed companies identify creativity and analytical thinking as skills that will grow in importance[23].
Invest in leadership development programs – targeted training helps address the pipeline problem; AI‑powered training tools are growing at 40 % annually and can scale learning across dispersed teams.

Agile leaders view change not as a threat but as an opportunity. By cultivating adaptability, managers can keep their organizations resilient, attract talent and navigate uncertainty without losing momentum.

Future Outlook: Beyond 2025

The leadership landscape will continue to evolve. As automation proliferates, managers will need to balance human and machine capabilities, making ethical decisions about algorithmic transparency and workforce reskilling[17]. The rise of hybrid and remote work means that 13 % productivity gains reported by Stanford’s study of remote workers will be contingent on leaders building inclusive communication practices[24]. Sustainability and social responsibility will also become core to leadership; 62 % of people expect CEOs to lead on societal issues and ESG commitments[8]. In a volatile world, leadership success will be measured not only by profits but by the ability to inspire, adapt and innovate while remaining grounded in empathy and purpose.

Putting it all together

The three leadership skills highlighted here—emotional intelligence, digital and AI literacy, and agility/adaptability—are deeply interconnected. Empathy ensures that technology solutions are designed for people, not just efficiency; tech literacy enables leaders to harness AI ethically; and agility allows continuous learning and innovation. Together, they form a robust leadership foundation for 2025 and beyond.

Managers who invest in these areas will be better prepared to build trust in a time of declining confidence, navigate the ethical and strategic challenges of AI, and steer their teams through ongoing disruption. The future belongs to leaders who can blend human empathy with technological acumen and an agile mindset.

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