Leadership today demands more than meeting current quarterly goals—it requires shaping the future of both the business and its people against the backdrop of an often challenging environment.
Yet, there are striking gaps between the skills that leaders need, and the development organisations are providing. Leaders feel ill-quipped to deal with the demands of their role face while facing an increasingly challenging environment as highlighted in DDI’s Europe Leadership Report 2025, a comprehensive research study from leadership consultancy DDI, based on insights from 428 leaders and 250 HR professionals, across 18+ countries.
Eighty percent of HR organisations in Europe are predicting a surge in the need for new leadership capabilities in the next five years. However, only 22% of HR organisations have prioritised addressing the top four most critical skill gaps within current development plans.
- Setting strategy: 55% of leaders identify it as essential, yet only 13% have received training.
- Engaging employees: 55% see it as critical, but just 15% have been developed in this area.
- Identifying and developing future talent: 48% cite it as crucial, yet only 8% have had relevant development.
- Decision making: 51% of leaders believe it is crucial, but just14% have received training
A lack of adequate training and support for existing and new leaders could be having an even more worrying effect on Europe’s leadership talent, as the DDI data also highlights the increasing risk of stress and burnout among leaders in Europe.
Lack of time leads to burnout amongst Europe’s leaders
According to the report, less than one fifth (19%) of leaders said they have sufficient time to fulfil their responsibilities at work, highlighting a critical failure in European organisations to effectively manage and protect leaders’ time and support their development.
In fact, further data from the report shows that over half (54%) of Europe’s leaders experienced significant increase in stress since stepping into their current roles. Of these leaders, 72% are concerned about burnout and 40% have considered abandoning leadership roles entirely as a result.
“The report highlights a critical threat to Europe’s leadership pipeline,” explains Bruce Watt, Ph.D, Senior Vice President at DDI. “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 choice is clear: invest in protecting and developing leaders today, or risk compromising organisational health and performance tomorrow.”
This latest report from DDI serves as a reminder that balancing economic pressures with long-term leadership development is essential for sustainable success in today’s volatile global landscape.
The Europe Leadership report forms part of DDI’s Global Leadership Forecast series, the largest and longest-running leadership study of its kind, based on insights from nearly 13,000 leaders and HR professionals, across 50 countries, including 223 CEOs.
For more information, including the full Global Leadership Forecast report series, visit ddiworld.com/global-leadership-forecast-2025.