A woman wearing glasses and a white shirt stands in front of a whiteboard, gesturing with her hands while speaking to an audience in a presentation setting. This visual represents a Great Leader in 2025 actively engaging and communicating.

What Makes a Great Leader in 2025?

ByPenny Strutton

The way we define great leadership is changing. Gone are the days when strong decision-making and a firm handshake were enough. In 2025, leadership is about connection, purpose and adaptability. As a business psychologist and leadership coach, I’ve spent years working with leaders across industries, helping them understand the changing demands of the modern workplace. And if there’s one thing I know, it’s that the most successful leaders this year are the ones who lean into a more human-centred approach. So, what exactly makes a great leader in 2025? Let’s explore the key qualities I see rising to the top.

1. Purpose-led leadership

More than ever, employees are looking for meaning in their work. Leaders who can clearly articulate why the business exists, beyond profit, are the ones who inspire real engagement. It’s not about lofty mission statements either. It’s about creating a culture where people feel connected to something bigger than themselves. Leaders who show up with clarity and conviction about their purpose will naturally attract commitment and loyalty.

2. Emotional intelligence is essential

Technical skills will always matter, but emotional intelligence has become the real differentiator. Leaders who are self-aware, empathetic and skilled at managing interpersonal dynamics are better equipped to lead high-performing teams. This includes being able to regulate your own emotions, understand others’ perspectives and handle tricky conversations with care. In an increasingly hybrid and remote world, emotional intelligence is what builds trust when face time is limited.

3. Flexibility and adaptability

If the last few years have taught us anything, it’s that change is constant. The best leaders in 2025 are not only able to adapt quickly, but they also bring their teams along with them. They’re comfortable experimenting, learning on the go and pivoting when things don’t go to plan. This mindset isn’t just for start-ups or tech companies; it’s becoming a baseline expectation in every sector.

4. Inclusive thinking

Diversity and inclusion are no longer optional, and the most respected leaders understand that inclusivity is an active, ongoing practice. It’s about more than representation. Inclusive leaders listen deeply, challenge bias (their own and others), and create space for different voices to be heard. They encourage a sense of belonging where people feel psychologically safe and valued for who they are.

5. Coaching over commanding

Top-down leadership is being replaced with a more coach-like approach. Great leaders don’t just give instructions. They ask questions, support growth and empower their teams to make decisions. This doesn’t mean being passive. It means shifting from telling to facilitating, helping people build confidence and take ownership of their work. It’s one of the fastest ways to develop future leaders within your organisation.

6. Ethics and transparency

With AI, data and digital processes increasingly influencing how we work, ethical leadership is under the spotlight. Teams want to know that the people at the top are making values-led decisions, especially when managing grey areas. Being open about decision-making, acknowledging uncertainty and taking responsibility when things go wrong helps build credibility, not just internally, but with clients and customers too.

7. Digital awareness, but people-first

No leader needs to be a tech expert, but digital fluency matters. The key is to understand how technology impacts people. This means being curious about tools like AI and automation, while staying grounded in how they affect team wellbeing, communication and productivity. The leaders who balance digital innovation with empathy and a people-first mindset are the ones who will thrive.

8. A commitment to continuous learning

Leadership is not a fixed identity; it’s something you grow into. The most effective leaders I work with are always learning. Whether it’s seeking feedback, exploring new perspectives or investing in their own development, they don’t settle for ‘good enough’. They model curiosity and a growth mindset, which creates a ripple effect across their teams.

9. Prioritising wellbeing and resilience

Burnout is still a real concern, and leaders set the tone. Those who demonstrate healthy boundaries, promote psychological safety and create space for well-being conversations help build more sustainable teams. Resilience isn’t about pushing through at all costs; it’s about recovering, resetting and knowing when to pause.

10. Building trust through everyday actions

At the heart of great leadership is trust. It’s built slowly, through consistency, honesty and genuine care. Whether it’s following through on promises, showing appreciation, or simply listening without an agenda, the small things matter. Trust creates stability, and in times of uncertainty, it becomes the foundation that keeps teams engaged and committed.

Final thoughts

Being a great leader in 2025 isn’t about having all the answers. It’s about being intentional, emotionally aware and deeply human in how you show up. If you’re leading a team, managing change or simply trying to grow into your next role, these qualities aren’t just ‘nice to have’ –  they’re the tools that will help you lead with clarity and confidence.

And if you’re wondering where to begin, start with curiosity. Reflect on how you’re leading now, get feedback from your team and choose one area to focus on. Leadership is a journey, not a destination, and it’s one that’s well worth investing in.