Great leaders stay aware, look ahead and determine how to lead for the future of work. And new evidence points to the leadership challenges that keep CEOs and leaders at all levels awake at night. The issues demand thoughtful responses, proactive choices and smart strategies.
You can use the list of concerns as a check-up and a comparison point for yourself and your organization—and as perspective to help you prioritize and set objectives for wise solutions.
When you understand the most important issues and proactively address them, you’ll increase the likelihood of your success, for sure.
Leadership Challenges
These are the primary issues that leaders are most concerned about and challenged by today, and that are driving leadership stress
1. Navigating Uncertainty
One of the top issues for 42% of CEOs was navigating uncertainty. This is according to a survey of almost over 2,000 HR professionals and almost 11,000 leaders across over 2,000 organizations, 50 countries and 24 industry sectors by DDI. In some ways, this issue encompasses many of the others—because so much today is unpredictable.
On a related note, 41% of HR professionals and employees in the US identified leadership development among the top three most important priorities this year, according the the SHRM 2025 State of the Workforce Report–and it makes sense–as leaders seek to ensure they have the knowledge and skills to address increasing demands.
How to respond? It’s tough to know how to take action when you can’t see very far ahead, and when you know things could change at any moment. But you can stay informed, make plans, monitor and remain open to continual evolution of the plan.
2. Economic Challenges
Another set of issues in the DDI data that leaders were concerned about was related to business health and market responses.
- 52% were concerned about global recession or slowing economic growth
- 33% were concerned about outperforming key competitors
Leaders of small business were also concerned about issues such as inflation (67% of leaders), taxes (48%), regulations (40%), recession (32%) and tariffs (17%), based on data from the Freedom Economy Index.
And beyond leaders, 72% of all Americans were concerned about tariffs, according to a Guardian-Harris Poll survey. This was up from 61% in mid-January. In addition, 73% of people globally are worried about inflation, according to Edelman’s Trust Barometer Global Report.
How to respond? Stay aware of economic, market and competitive issues—and assess their likelihood as well as their potential impact on the business—and then put teams in place to plan for how to mitigate them. Also establish systems for fast responses (think: new communication channels or ad hoc teams) as issues shift and you need to react quickly.
3. Talent and Workforce Issues
Many of the top issues for leaders relate to talent, employees and the workforce. Specifically, the DDI data showed,
- 54% were concerned about attracting and retaining top talent
- 41% were concerned about developing the next generation of leaders
- 30% were concerned about building a resilient workforce
- 28% were concerned about maintaining an engaged workforce
In addition, 30% of small business leaders were concerned about a lack of reliable employees, according to on data from the Freedom Economy Index.
How to respond? Birth rates are declining globally, so the talent shortage is here to stay. In the face of this decline there are compelling reasons to hire Gen Z. In addition, provide for learning and development since all generations prioritize growth. Also, create the conditions for greater engagement—like meaningful work, a sense or purpose and opportunities for involvement–and you’ll likely see a boost in retention. People will stick around for roles that interest them and organizations and leaders that inspire them.
4. Innovation
Business leaders were also considering innovation, with DDI data showing
- 34% were concerned about driving corporate innovation
How to respond? Encourage innovation by creating a culture where people feel safe to take appropriate risks and in which there is fast flow of information across the organization and between teams—related to your context, your market, your challenges and your customers. And create systems for deep listening about customer needs—as well as systems for testing, experimenting and constant learning.
5. AI and Digital Transformation
In addition, leaders were worried about technology-related topics. Specifically,
- 29% were concerned about successfully leveraging AI
- 25% were concerned about digital transformation
Leaders of small business—18% of them—were worried about competition from AI, according the Freedom Economy Index data.
How to respond? Stay aware of technology developments, and ensure you’re using the best tech and AI solutions to run your business, deliver value to customers and interact with them. Encourage people to use and try AI, within the appropriate guardrails and protocols—to ensure you’re protecting your IP and confidential information at the same time you’re fostering new learning among employees.
Tackle Leadership Challenges
Leadership is arguably harder today than ever—based on volatility, uncertainty, complexity and ambiguity. But leaders can see their way to the future by paying attention to the top issues and leadership challenges generally, and then applying them to their own organizations—establishing the best strategies for success and resilience.