Good morning!
As organizations grapple with a myriad of challenges, from managing return-to-office plans and generational differences in the workplace to handling massive restructuring and AI integration, being a successful leader is getting more complicated. As a result, many are eyeing the exit, and top performers may choose not to accept managerial roles altogether.
Roughly 71% of business leaders say they’ve seen a significant increase in their stress level since starting their role—a sharp uptick from 63% in 2022, according to a survey from consulting firm DDI. That’s due in part to a lack of time and resources available; only 30% say they have enough hours in the day to complete necessary work to their standards. As a result 40% of business leaders experiencing work-related stress say they’ve considered leaving their positions. That means that the leadership pipeline isn’t just under stress, it’s “potentially facing a structural breakdown,” the study notes.
An army of unhappy business leaders is also helping fuel a workplace trend experts are calling “conscious unbossing,” in which employees deliberately avoid taking on traditional management roles. “There’s been a longer trend among millennial professionals and now within Gen Z, to have a preference for entrepreneurship or specialist roles over management,” Stephanie Neal, director of DDI’s Center for Analytics and Behavioral Research, tells Fortune. “This constricts the leadership talent pool and is becoming a greater risk to the future of organizational talent pipelines.”
Companies seem to be well aware of their talent risk already—a staggering 80% of organizations are not confident in their leadership bench. There are, however, some methods that can help corporate high-achievers avoid feeling overburdened, according to the study. The top three stress-management techniques leaders use, the study points out, are self-reflection (74%), open discussions (71%) and using learning and development tools (46%). Those who do all three, the study found, are 1.5 times less likely to leave their roles in the next year.
It’s also up to HR teams to ensure their leaders are receiving the proper tools they need to succeed. Only 22% of people teams currently prioritize future-oriented skills like managing change and developing talent, often because of limited resources, says Neal.
That’s why it’s crucial for HR to advocate for more leadership development resources, and demonstrate “the ROI of advanced skills,” she says.
Brit Morse
brit.morse@fortune.com
Around the Table
A round-up of the most important HR headlines.
In Spain, single parents can now request the same paid parental leave as other two-parent families, which could be a game-changer for the country.New York Times
Right-leaning activist groups are now targeting Goldman Sachs and JPMorgan Chase, pushing them to either change or abandon their DEI policies.Wall Street Journal
As Trump orders federal workers back to the office full-time, employees are scrambling to figure out how to manage the new mandate and looking for union support. Wall Street Journal
Watercooler
Everything you need to know from Fortune.
Adding new benefits. This upcoming year, companies are looking to increase their investment in the areas where employees need the most help, including mental health, substance abuse, and caregiving. —Sara Braun
Rolling in late. There are a lot of things that employees do to annoy their colleagues, but being late to work isn’t one of them. —Chloe Berger
Not hiring their own generation. Roughly half of Gen Z hiring managers admit that their own generation is the most difficult to manage, according to a new survey, and they’re hiring Millennials instead. —Chloe Berger
