AI and Other Challenges: Why Human-centred Leadership Still Matters in 2025

Ask any business leader what they think are the most important leadership qualities, and they’ll typically say vision and drive, agility and resilience, innovative thinking, problem-solving, empathy, and trust. But what do these qualities look like in action?

What do we need from our leaders in 2025?

The leadership landscape is evolving rapidly. Global economic uncertainty, advances in AI and technology, and shifting workforce expectations are redefining the role of leaders. Success will require balancing these opportunities and threats without losing sight of people.

In 2025, Human-centred leadership will be more important than ever — an approach that strengthens relationships and drives meaningful connection.

Leadership Priorities for 2025

Navigate Economic Pressures

With Trump taking up his second residency in the White House and the UK government grappling with economic stability and the cost of living crisis, we face a volatile global economy. Not only does this bring challenges to business growth, but it also brings personal financial stresses. Leaders should:

• Take a people-first approach: Offer financial wellness programmes, transparent communication about challenges, and flexible benefits to support employees through tough times.

• Reassess business strategies: Build resilience by focusing on cash flow, operational efficiency, and adaptability to market shifts.

• Invest in future growth: Despite challenges, now is the time to innovate and explore emerging opportunities, from AI to green technology.

2. Balance AI with the Human Touch

2025 is the year that AI becomes more mainstream, disrupting business and our working and personal lives. While AI offers opportunities for innovation and efficiency, it also raises challenges around ethics, job security, and trust. In 2025, leaders must:

• Integrate AI thoughtfully: Use AI to enhance decision-making, take on routine tasks and free up teams to focus on creative, strategic work. Blend technical skills with human-centric ones like critical thinking, collaboration, and empathy.

• Address concerns openly: Communicate the role of AI and how it complements, not replaces human contribution. Build resilient teams that can adapt and thrive in the face of change.

• Upskill your workforce: Empower employees with the tools and knowledge they need to thrive in an AI-driven world. Champion a continuous learning culture – allowing the time for people to learn and test and make it accessible to all.

“Good leaders are people who are trusted by followers."

3. Lead with Human-Connection and Empathy

Trust and empathy are the foundation of effective leadership in times of uncertainty. Hybrid and remote work means we spend less time together in person, which makes it harder for leaders to build those relationships. When we are physically together, it’s easier to see if someone is having a bad day or struggling with a task. Now, we have to rely on people to tell us, often over a message or, at best, a video.

This year, leaders need to be proactive and not neglect human skills (or what are often referred to as "soft skills"):

Focus on building trust and connection. This means having individualised relationships with each of your employees, which take account of their needs for flexibility and their well-being, and give each person a voice within the team

• Develop emotional intelligence: Understand and respond to the needs of your team, fostering trust and loyalty.

• Be empathetic: Rationally understanding people’s emotions and where they come from helps build trust, motivate, and engage people in the way that matters to them.

• Genuinely care about your people: Remember everyone is different: different backgrounds, different outlooks and with different ambitions.

• Strengthen team cohesion: Break down silos and encourage cross-functional collaboration to unlock innovation.

• Be authentic: Authenticity over perfection: Leaders who are open about challenges and lead with integrity will foster loyalty and respect and will inspire teams with a clear vision for the future.

• Prioritise well-being: As well as offering flexible work arrangements, ensure mental health and work-life balance are top priorities.

4. Embed Purpose and Values

The UK workforce is undergoing a demographic shift, with younger generations, particularly Millennials and Gen Z, making up a growing proportion of employees. These workers prioritise purpose, values, and ethical practices, seeking employers who align with their desire for meaningful work, social responsibility, and a positive impact on the world.

A shared sense of purpose is the key to resilient, innovative teams, especially in periods of change or pressure.

• Define and live your values: Ensure your organisation’s purpose is embedded in daily operations, not just words on paper.

• Align culture with strategy: Foster an environment where mission and values guide decision-making at every level. Be clear about the culture you want to create and communicate your values.

• Lead by example: When leaders embody the company’s values, they create a ripple effect that enhances engagement and accountability.

6. Adaptability Is the New Superpower

The pace of change is relentless. The speed of adoption of ChatGPT is several magnitudes faster than it was for the internet or PCs, which means there is greater potential to get the use case wrong. For leaders, the risk the potential adoption of the wrong tech or software and hardware, which tends to happen with fast-changing technology.

In a year of disruption, leaders must be forward-looking, innovative, nimble, adaptable and willing to learn from inevitable failures.

• Embrace agility: Be ready to respond to change quickly in response to evolving circumstances and technology. The future of work isn’t just about adapting to change – it’s about shaping it with intention and our incredible imaginations.

• Monitor and review: closely monitoring external factors (political, economic, social or technology) and review, tweak or completely change course if required.

• Encourage experimentation: Create a culture where teams feel safe to innovate and learn from failures.

• Build resilience: Equip teams to weather uncertainty by building psychological safety, strong support systems and clear priorities.

7. Diversity, Equity, and Inclusion: A Leadership Mandate

Diversity, equity, and inclusion (DEI) are no longer optional—they are business imperatives:

• Champion inclusive cultures: Ensure diverse voices are heard, valued, and empowered.

• Address biases: Actively confront unconscious biases within yourself and your organization.

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At Growth Space, we believe confident, self-aware leaders are the key to success. Start your growth here.

We deliver bespoke leadership development, management training and leadership coaching to support people at all levels with the skills to inspire, motivate, and create lasting impact.

Whether you want to develop strategic thinking, lead with empathy, be more emotionally intelligent, or build a collaborative culture, our learning and development programmes and coaching solutions are designed to meet your unique challenges.

We help you unlock your full potential and achieve both personal and organisational success.

For more ideas on Leadership visit our website growth-space.co.uk

Or to discuss Leadership Coaching and development programmes contact Polly:

polly@pollyrobinson.co.uk or call 07966 475195.

Is Leadership Development Training Worth the Investment?

What is the ROI of Leadership Development?

Times are challenging for UK businesses right now and budgets are tight. Leadership and management training may seem like a luxury your business can ill afford right now, but arguably it’s more vital than ever. Senior leaders and first-time managers are under more pressure and are more overwhelmed and unprepared for the challenges of their roles. Investing in their development is essential to unlocking the full potential of teams, increasing productivity, boosting retention, and building a successful business. The ability to inspire, guide, and adapt is what sets thriving businesses apart from the competition. Yet, investing time and money in leadership training often raises the question: Is it worth it?

Leadership Expectations Have Changed

Over the past 20 years, our exceptions of leaders have evolved. Leadership has shifted from a traditional command and control model to one that focuses on emotional intelligence, collaboration and adaptability. Today's Leaders are expected to drive innovation, growth and profitability and to place people at the heart of their leadership approach - fostering trust, building strong relationships and creating environments where individuals and teams thrive.

Leadership styles and strategies have also had to adapt to rapid technological advancements, changing workforce demographics, and the rise of remote and hybrid working. The digital workplace demands leaders who can manage virtual teams effectively and leverage digital tools to enhance communication and collaboration.

Why now is the time to Invest in Leadership Development

Balancing business objectives and hard KPIs with the human side of leadership is tough, and research highlights a critical gap in leadership skills. Ineffective management costs UK businesses billions in lost working hours and disengaged employees.

• 82% of managers take on their roles without formal training (Chartered Management Institute Accidental Managers, 2023).

• Only 40% of leaders rate their company’s leadership as high-quality (leadership consulting firm DDI 2023)

• 75% of workers waste up to two hours out of their working week due to inefficient managers. Management practices leading to time lost include unclear communication (33%); lack of support (33%); micro-management (26%); and lack of direction (25%) (Department for Business & Trade).

• 41% of employees report experiencing “a lot of stress” at work and those who work in companies with bad management practices are nearly 60% more likely to be stressed than those working in environments with good management practice. (Gallup’s State of the Global Workplace)

The Return on Investment in Leadership Training

Whether you’re exploring leadership development for senior leaders or management training for new managers, the evidence shows that the Return on Investment is substantial. It’s not only the participants who’ll benefit - the results will ripple through the whole organisation driving productivity, retention and trust

• Leadership training offers a median ROI of 700%, with some organisations reporting returns of up to 5000% (Global Coaching Client Study by the International Coaching Federation (ICF).

• Businesses with formal leadership training see 218% higher income per employee than those without it (ATD Research)

• The Chartered Management Institute (CMI) reports that every £1 spent on management and leadership development can yield £6 in ROI through increased productivity, innovation, and efficiency.

Why Investing in Training will Produce Tangible Benefits.

1. Better Decision-Making Leads to Higher Productivity

Leadership training equips executives with the tools to step back from day-to-day operations and align decisions with long-term goals. Confident leaders make clear, bold decisions, driving teams toward meaningful results. For businesses navigating economic uncertainty, this clarity can lead to increased productivity and streamlined operations.

For instance, leaders trained in coaching techniques can identify bottlenecks in team performance and guide their teams to work more efficiently. Research shows:

• 37% increase in productivity from leadership training (IBM The Value of Training)

• For every £1 spent on management and leadership development in the UK, businesses see an average return of £6 in increased productivity, innovation and (CMI)

• 23% improvement in organisational performance (CMI 2023)

2. Increased Employee Retention and Reduced Turnover

Staff turnover can be costly, both in terms of finances and team morale. According to a study by Oxford Economics, replacing an employee in the UK costs businesses an average of £30,614 due to recruitment, onboarding, and lost productivity.

Investing in leadership training empowers managers to create supportive environments where employees feel valued and motivated. Great leaders inspire loyalty, growth opportunities and open communication—essential elements of employee satisfaction. Happy employees are more likely to stick around, reducing recruitment costs and keeping expertise within your organisation.

• 94% of employees would stay longer at a company that invests in their learning and development (LinkedIn Workplace Learning Report)


• 72% reduction in turnover reported by businesses that prioritise leadership development (Confederation of British Industry CBI)

• 32% boost in employee engagement and productivity (CMI, 2023).

3. Improved Team Performance and Collaboration

Leaders are the torchbearers of the company’s culture, values and behaviours. Leadership development programmes help leaders foster a culture that matches the company’s mission and vision and promote values like collaboration, innovation, accountability, and respect in their teams. This positive influence spreads to all levels of the organization, creating a work environment that motivates employees and encourages them to give their best.

Leadership Training helps managers develop key skills like emotional intelligence, conflict resolution, and giving and receiving feedback. These skills break down silos and cultivate a culture of collaboration, which is critical for innovation and efficiency.

Effective leaders also create a culture of accountability and performance. They set clear expectations, provide feedback, and recognize and reward performance that supports strategy execution. This ensures everyone is working towards the same goals and motivates employees to perform at their best.

4. Adaptability and Innovation

Leadership training can help senior managers improve their ability to manage change. In today’s business world, change is constant, and companies must be able to adapt quickly to stay ahead of the competition. By learning how to manage change effectively, senior managers can help their teams navigate through difficult times and emerge stronger on the other side. A course on change management or strategic thinking, for example, gives leaders strategies and learn different models and strategies for change, and how to address human aspects of change, such as resistance, fear, and uncertainty. This adaptability ensures your business can stay competitive and resilient.

5. A Culture of Continuous Improvement

Leadership training doesn’t just benefit the individuals who attend the courses; it creates a ripple effect across the entire organisation. When leaders model effective behaviours like open communication, accountability, and innovation, these values permeate the company culture. Over time, this builds a self-sustaining environment of continuous improvement.

How to Measure the ROI of Leadership Training

So how do you quantify the return on investment (ROI) of leadership training? Here are a few metrics to track:

• Employee Retention: Measure reductions in turnover rates post-training to assess improved retention.

• Productivity Gains: Track improvements in project completion times, efficiency, or sales figures to demonstrate impact.

• Engagement Scores: Use employee surveys to gauge increases in morale, satisfaction, and commitment levels.

• Cost Savings: Calculate reductions in recruitment, onboarding, and absenteeism expenses.

• Leadership Confidence: Evaluate pre- and post-program self-assessments or peer reviews to measure individual growth.

  Aligning these metrics with organisational goals will provide a comprehensive view of the programme’s effectiveness and help justify continued investment.

How to Ensure the Success of Leadership Training

To maximise the impact of your leadership programme, consider these best practices:

• Tailor the Programme: Align training content with your organisation’s unique goals, culture, and challenges.

• Engage Stakeholders: Secure buy-in from senior leaders to foster a culture of commitment and set an example.

• Create a Learning Culture: Encourage participants to apply what they’ve learned and share insights with their teams.

• Follow-Up Support: Provide coaching, mentoring, or action learning sets post-training to reinforce new skills and sustain behavioural change.

• Track Progress: Use data and feedback to evaluate programme effectiveness and identify areas for continuous improvement.

• Celebrate Wins: Highlight successes and progress to maintain enthusiasm and support for ongoing development initiatives.

Why Choose Growth Space for Your Leadership Training?

At Growth Space, we specialise in creating impactful Leadership Development Programmes tailored to your organisation’s unique challenges and goals. We are experts in leadership training, people development, Coaching and Facilitation to help businesses unlock their full potential.

With a proven track record of delivering measurable results—including improved retention, productivity, and engagement - we can help you to develop confident, resilient and high-performing leaders.

Ready to Invest in Your Leaders?

Contact Polly to discuss how our bespoke leadership training solutions can support your leaders.