The leadership gap exposed: why managers need coaching skills

The workplace landscape is shifting at an unprecedented pace and leaders are facing mounting pressure to adapt to this evolving environment. Recent insights from the Association for Talent Development (ATD) and meQuilibrium (meQ) reveal two critical aspects of this challenge: a persistent leadership skills gap and an impending "manager crash." Together, these findings clearly stress the need for organisations to invest in equipping leaders with the tools to succeed in complex and demanding circumstances.

Communication and trust: the building blocks of leadership

According to ATD’s Leadership Skills: Unlocking Your Abilities to Face Tomorrow's Challenges report, communication is the most critical skill for leaders, as it underpins their ability to build trust, provide feedback and inspire teams. Yet, many organisations report significant gaps in these areas, reflecting a broader trend of underinvestment in leadership development.

The report also highlights that organisations prioritise leadership training for its impact on performance and engagement. However, despite the importance of soft skills such as empathy, active listening and problem-solving, a large percentage of talent development professionals believe current efforts fall short.

With leadership training costing more than general employee training and budgets expected to remain static, organisations must find innovative ways to address these gaps.

The looming "manager crash"

Adding to the leadership conundrum, meQ predicts a "manager crash" by 2025 - a scenario where managers, burdened with unprecedented levels of stress and responsibility, face burnout and declining performance.

Managers are central to organisational success; their wellbeing directly affects team morale, retention and productivity. Yet, as highlighted in the meQ research, managers often feel less supported than their teams, creating a troubling disconnect. This crisis is compounded by the accelerating pace of change.

Organisations are being urged to prioritise "change readiness," equipping leaders and employees to adapt to technological advances, role transitions and unforeseen challenges.

Without proper support, the resulting anxiety could diminish both individual and organisational resilience.

Coaching as a solution for leadership challenges

To address these interconnected challenges, coaching can serve as a powerful tool for both leadership development and manager wellbeing. By incorporating coaching skills into leadership training, organisations can foster better communication, improve trust-building and create an environment of psychological safety. Managers who adopt a coaching mindset are more likely to engage and support their teams, reducing the risk of burnout and turnover.

Karen Smart, head of organisations at AoEC, emphasises: “Incorporating coaching skills into leadership development is about more than just equipping managers with tools to navigate challenges. It creates a ripple effect of psychological safety and engagement across teams, enabling leaders to build stronger relationships and deliver sustainable performance.”

Moreover, coaching helps leaders navigate change effectively. It equips them with techniques to manage uncertainty, adapt to new roles and guide their teams through transitions. As highlighted in meQ’s research, resilience and adaptability are critical for preparing managers for the complexities of modern work.

A pathway forward

Organisations must rethink their approach to leadership development. This includes integrating coaching into leadership programmes to ensure that managers develop the interpersonal abilities needed to lead effectively, focusing on resilience and self-care by offering structured support for managers such as resilience-building workshops and mental health resources and adopting a change-ready culture by fostering adaptability and continuous learning to empower their leaders to thrive amid uncertainty.

As the workplace continues to evolve, proactive investment in leadership development is no longer optional. With the right strategies, organisations can close the leadership gap, support their managers and secure a resilient and high-performing future.