The leadership crisis 2025: Why control is failing - and trust is the new corporate profit

Berlin - Companies are undergoing fundamental change: economic uncertainties, hybrid working models, digitalization and rising expectations of leadership are changing the rules of the game. But while the world keeps turning, the motivation of many employees seems to be at a standstill. Only 9% of employees in Germany are emotionally highly engaged, while 78% are merely "working to rule". A further 13% have already resigned internally.

These figures come from the latest Gallup Engagement Index Germany 2024 - and they mark a historic low in emotional employee engagement. The economic damage is considerable: Gallup puts the productivity losses due to a lack of engagement at around 113 billion euros per year.

At the same time, the index shows how fragile the relationship between employees and management has become: Only around 21% of employees trust their direct manager without reservation. Trust, which was once the natural basis of cooperation, has become a scarce resource.

In this context, managers are faced with three basic questions every day:
- How do I lead my team through uncertainty and constant change?
- How do I keep motivation and performance high without overstretching them?
- How do I communicate difficult decisions credibly?

"Many managers try to compensate for uncertainty through control, but this is exactly what exacerbates the crisis," analyzes Jessica Wahl, business and career coach for managers in Berlin. "Today, we need fewer announcements and more orientation, meaning and honest communication."

Uncertainty is not a vague feeling, but measurable. Gallup surveys have been showing declining loyalty levels for years - not only in Germany, but internationally. Leadership is therefore less a question of processes than of attitude.

"Credible leadership means talking openly about risks instead of hiding them," adds Wahl. "People are more likely to accept difficult decisions if they understand the reasons and if they become part of the story."

Motivation without excessive demands

Motivation has long been a business lever. Studies show: Committed employees are more productive, more innovative and more loyal. At the same time, many managers experience the opposite: increasing stress, exhaustion and high staff turnover.

According to recent health insurance evaluations, more than half of employees in Germany feel increasingly stressed. Mental stress is on the rise. Managers are therefore faced with the challenge of demanding performance without creating overload.

"Motivation doesn't come from constant calls to perform," says Wahl. "It arises when people feel that they are seen and heard and when they are clear about what really has priority."

Inner resignation: a symptom of a lack of leadership

The term "internal resignation" describes employees who have become emotionally distant. According to Gallup, this currently affects 13% of employees. Together with employees with a low level of commitment, this means that over 90% of employees work without a high level of emotional commitment.

"Internal resignation is almost always a communication problem," says Wahl. "If decisions are incomprehensible or the manager is perceived as unapproachable, employees withdraw mentally and emotionally."

Communicating difficult decisions credibly

Especially in phases of restructuring, budget cuts or strategic realignment, communication becomes a key skill. Employees don't expect perfect solutions, but they do expect honesty.

"Credible communication means explaining, not glossing over. And taking responsibility," emphasizes Wahl. "Employees also accept tough decisions if they are communicated to them fairly, transparently and respectfully."

This form of leadership is demanding. It requires clarity, presence and a willingness to have uncomfortable conversations. However, it creates stability in unstable times.

Practical experience

Markus Neubert, Managing Director of a technology-driven medium-sized company, agrees:
"In our last restructuring phase, I learned that silence can be worse than bad news. Open and transparent communication brought my team together and later even strengthened it."

Claudia Richter, division manager at a global services company, also reports: "Hybrid working changes everything. Without regular, binding discussions, you lose teams faster than you think. Trust grows when leadership becomes a reality through clarity and reliability."

Trust as an economic success factor

Trust is not a soft value, but a measurable success factor. Where trust grows, absenteeism and fluctuation fall, while productivity, innovative strength and loyalty increase. In a working world characterized by uncertainty, leadership thus becomes a decisive factor for future viability.

"Leadership begins where I am prepared to take responsibility not only for results, but also for people," summarizes communications expert Jessica Wahl.

The current transformation is therefore also a great opportunity. Companies that invest in contemporary leadership now, i.e. in clear and credible communication, genuine orientation and a culture of trust, are laying the foundations for sustainable success. Trust is thus turning from a soft factor into a hard competitive advantage and thus into a decisive resource for the coming years.

WAHLUNIVERSUM (R)
Info@JessicaWahl.de

The Institute for Personal Performance Coaching in Berlin specializes in the targeted development of personality and leadership presence. Under the direction of Jessica Wahl, Senior Performance Coach and expert in leadership communication, career development and voice performance, the institute has been supporting companies and organizations in targeted leadership development for over 20 years.
The service portfolio includes tailor-made programs in the areas of leadership development, executive coaching, career coaching, assessment and potential development, leadership presence as well as media and interview training. The focus is on strengthening leadership effectiveness, communication clarity and personal presence in decision-making and change processes.
Companies from business, media and politics rely on the institute's expertise to develop managers at all levels in a targeted manner. The coaching sessions are held in Berlin, digitally or in hybrid form.

This release was published on openPR.