7 Leadership Competencies That Will Define the Next Generation of Leaders
The pace of change is relentless. If 2024 is any indication, 2025 and beyond will only accelerate the trend of constant disruption. The next generation of leaders will need more than just traditional leadership competencies. They’ll be required to guide their organizations through an era of continuous change, adapting strategies and making decisions that ensure resilience and growth.
If today’s leaders don’t adapt, a widening leadership gap could leave many organizations struggling to stay competitive. The leadership of tomorrow will need more than just experience—it will require new leadership skills, a proactive mindset, and the ability to build strong connections with diverse teams.
The Power of Leadership
Leadership is more than organizing teams and making tough decisions. The way your leaders engage with their teams and handle challenges can have a lasting impact on the company—both for the good and the bad. The leadership skills a person brings to the table, from communication to problem-solving, play a vital role in setting the tone for the entire organization.
A leader’s approach to communication, problem-solving, and decision-making can either foster a positive, thriving environment or contribute to a toxic culture that holds the organization back.
In fact, research shows that leadership’s effects on workplace culture are profound. People are 10 times more likely to quit due to toxic work cultures than due to compensation or work-life balance issues. What’s more, three in four employees share that the most stressful part of their job is their manager.
The qualities of a great leader go beyond technical know-how and years of managerial experience. Managerial experience alone doesn’t make a great leader. Companies need to invest in leadership development to ensure their leaders possess the qualities and leadership competencies that drive success.
Investing in leadership development is an investment in the future of the company. Companies that prioritize training and mentoring programs to develop leadership skills are 3.4 times more likely to earn top rankings as a best place to work.
7 Leadership Competencies for Tomorrow’s Leaders
Traditional management techniques will no longer cut it. The next generation of leaders will need an entirely different set of leadership skills to succeed. What’s working today will not work tomorrow.
Thankfully, we’re not starting from scratch. The foundation for great leadership is already in place, but there are key leadership competencies that can no longer be overlooked.
SHRM separates leadership competencies into three distinct categories:
- Leading the organization
- Leading others
- Leading the self
Great leaders will need to have a mix of skills and competencies from each of these three categories. But, the seven essential competencies are:
1. Emotional intelligence (EQ)
EQ is the ability to recognize, understand, and manage both one’s own emotions and the emotions of others. Beyond emotional intelligence is social intelligence, which is the ability to understand and navigate social situations effectively. It is also one of the best predictors of effective leadership.
Leaders with high EQ demonstrate an exceptional ability to respond to their team’s emotional needs. They address conflicts with both empathy and tact, which leads to better conflict resolution and decision-making.
Most importantly, they know how to adapt their communication style, creating an environment where team members feel understood and valued.
2. Effective communication
Effective communication is essential to effective leadership. But, communication is two-sided. You cannot simply speak—you need to listen, too. Truly excellent leaders will need to master two distinct but equally important aspects of communication: transparent communication and empathetic communication.
Transparent Communication
Transparent communication requires (of all things) transparency.
Transparent communication: Openness must be prioritized at every level. It’s not simply sharing information—it’s ensuring that information is accessible, understandable, and shared without barriers.
This is no longer optional. In 2025 and beyond, transparent communication should be the baseline. The younger generations—who will quickly become the majority in the workplace—consider transparent communication to be an absolutely essential leadership skill.
Empathetic Communication
Empathetic communication is often associated with active listening, but it’s important to recognize that it also requires thoughtful, compassionate speaking. It’s not just about hearing others; it’s about responding with understanding, validation, and support. It’s a practice of engaging with people in a way that shows genuine concern and care.
The way a leader speaks—and listens—can make all the difference in fostering a truly empathetic environment.
3. Technological literacy
I think we’ve established that technology is no passing fad—it’s an integral part of the business landscape that’s here to stay. While not every new tool or trend will work for every organization, leaders must adapt and stay open to innovation.
Embracing technology isn’t just about jumping on the latest bandwagon; it’s about strategically using the right tools. Leaders who stay ahead of the curve and cultivate technological literacy are better equipped to navigate disruption and empower their teams to succeed in an increasingly digital world.
In fact, technological literacy is labeled the third most essential leadership skill.
4. Change management
Change is inevitable, but it doesn’t have to be painful. Effective change management is a vital leadership competency that helps leaders guide their teams through transitions smoothly and with minimal disruption.
It’s not just about overseeing transitions—it’s about reducing resistance and helping teams adapt more easily. When leaders approach change with empathy, transparency, and a clear vision, they create smoother transitions and set the foundation for greater long-term success.
5. Strategic agility and adaptability
Change is not only inevitable, it’s constant. With the fast pace of today’s digital world, unpredictability is the new norm. Leaders must be able to think on their feet. They cannot simply react.
Culture Amp’s research found that responsive organizations tend to perform better, regardless of external circumstances—highlighting the power of adaptability in driving success. At the core of this responsiveness is respect.
When leaders show respect for their teams, it cultivates an environment where collaboration thrives and individuals feel empowered to contribute their best. Respect fosters trust, which in turn fuels more collaborative teams that adapt more quickly to changes. In organizations where respect is a foundational value, teams are more agile, more engaged, and better equipped to meet challenges head-on.
6. Work-life boundaries
Work-life balance is not just some buzzword. With so many available touchpoints, it can be almost impossible to truly walk away from work. But, it is essential for your mental wellbeing.
Work-life balance begins with clear boundaries between professional and personal. Leaders need to not only set boundaries, but lead by example. Leaders who encourage these boundaries set the tone for the entire organization. When leaders commit to true balance, employees are more likely to feel empowered to do the same.
You don’t want burned out employees—it leads to lower engagement, lower productivity, and higher turnover. But, that’s exactly what you’ll get if you don’t establish and enforce these boundaries.
7. Wellness and mental health awareness
Sometimes the qualities that make a great leader aren’t skills or competencies, but the ability to genuinely care about their team’s well-being. Leaders who prioritize checking in with their employees and maintaining trust are more likely to have highly engaged teams.
Mental health and wellness are becoming increasingly vital to employees. According to a 2024 Aflac survey, 76 percent of employees now rate mental health coverage as equally important as physical health coverage.
This is more than simply providing resources. Tomorrow’s leaders need to take a more active role in supporting their employees’ mental well-being. Develop an open, empathetic culture that reduces stigma around mental health challenges and provides the support they truly need.
Building tomorrow’s leadership competencies today
As leadership needs evolve, the companies that invest in cultivating these competencies will be the ones to thrive. The leaders of tomorrow are shaped by the actions we take today—let’s make them count.
