Companies are struggling with the rise of AI, high levels of employee burnout, and managing hybrid teams. Now, there’s a new challenge: no one wants to be a leader.
According to DDI’s 2025 HR Insights report, based on a survey of 2,185 HR professionals and 10,796 leaders, 75% of companies prioritize promoting employees to leadership roles from within. However, less than 20% of Chief Human Resource Officers say they actually have employees who are ready to fill critical leadership roles. On average, there are only enough internal candidates to fill less than half (49%) of open leadership positions.
Going forward, it looks like the leadership vacuum is likely to get worse. According to the report, Gen Z is 1.4 times more likely than other generations to reject a leadership role. At the same time, Gen Z is also 2.8 times more likely to quit a job because of subpar leadership.
However, as Fast Company contributor Tracey Brower points out, the dearth of qualified candidates creates an opportunity for anyone who wants to be a leader.
What can companies do to create more leaders?
Historically, leadership roles have been desirable but as navigating the business landscape becomes more complicated, leadership roles have become less attractive. “Leadership is becoming a tougher job every day,” said Tacy M. Byham, Ph.D., CEO of DDI, in a press release. “While organizations can’t control the deluge of external challenges they face this year, strategic HR executives can build resilience by using trusted people analytics to forecast needs, build their bench, and reinvigorate the next generation of leaders.”
Essentially, companies need to create a strong leadership pipeline. Promotions are six times more likely when employees receive adequate coaching from managers. Likewise, companies should always be thinking about their strongest employees’ potential, even before leadership positions become available.
Tara Rasmussen, a hiring manager for Hapi, a hospitality tech company, points out that employee expectations have evolved. While she says older professionals cling to habits like “micromanagement” and “habits of overworking,” young employees are pushing back—even those who want to be leaders are setting firm boundaries around their personal time. “Elder millennials and Gen Z employees are more inclined to say ‘No thanks’ to giving up personal time even with decent salary increases,” she explains. In the past while future leaders stood out by working long hours, today selection committees need to understand that even leaders want time off.
What can employees looking for leadership roles do to stand out?
- Cultivate soft skills
Strong leadership is built on a solid foundation of soft skills. Rasmussen, notes that when it comes to new leadership, “soft skills,” like communication and interpersonal skills, are more important than ever before. She notes that soft skills are the ability to navigate nuance while communicating with others and doing work. It’s not a one way lane,” Rasmussen explains. “Leaders in the current climate cannot expect to step into a role and communicate one way to all team members and be successful because everyone is different.”
- Humility
Given the current environment where leaders face all kinds of challenges from technological changes to a turbulent economy, Rasmussen also points out “humility” is a key attribute modern leaders must have. “The ability to say, ‘I don’t know but I’ll find out,’ is absolutely critical,” she explains. “Leaders we look for now are not just ‘bosses’ that micromanage and order employees around. They must be able to be, well, human. Admit when wrong and grow alongside their teams.”
- Embracing AI and adaptability
Jeffrey Pole, CEO and cofounder of Warden AI, tells Fast Company that, in 2025, leaders have to be innovative, adaptable, and knowledgeable about how to work alongside AI.
“There is much fear in the workforce today, with economic uncertainty, technology disruption, and a constant need for new skills and new career paths,” Pole explains. “The best leaders of this generation will be the ones who can adapt to change, embrace new opportunities, and motivate people to explore and experiment with the technologies and markets that are opening up.”
