As New Zealand businesses grapple with a rapidly evolving job market, strong leadership has never been more critical.

The rise of AI, the shift to flexible work arrangements and changing employee expectations have transformed what it means to be an effective leader. 

Leading recruitment firm Robert Walters highlights the urgent need for businesses to invest in strong leadership, warning that weak leadership could be costing organisations significantly in lost productivity and turnover. 

The true cost of poor leadership 

According to Robert Walters’ latest findings, 43% of employees would leave a job due to poor leadership, making it the leading cause of workplace dissatisfaction. 

A significant 92% of employees say their manager significantly impacts their happiness at work – highlighting just how important effective leadership is to retention and engagement. 

Robert Walters’ 2025 Salary Survey also reveals that 13% of employees cite poor leadership as their primary reason for leaving a job. It ranks just behind monetary reasons such as lack of career progression (22%) and unsatisfactory pay (19%). 

CEO of Robert Walters Australia and New Zealand Shay Peters, pictured above, warns that businesses ignoring the leadership challenge are paying a high price.

“Good leadership is the foundation of any successful organisation. Leaders who inspire, communicate effectively and foster an inclusive work culture build motivated, high-performing teams.

“On the other hand, weak leadership leads to disengagement, high turnover and ultimately, lost business potential.” 

Further backed by Forbes, disengaged employees – often caused by ineffective leadership – can cost businesses up to 34% of an employee’s annual salary in lost productivity and recruitment expenses. 

What employees expect from leaders in 2025 

Business Director of Executive Search at Robert Walters New Zealand Neil Munro notes that leadership has undergone a major shift in recent years.

“The traditional, top-down, hierarchical leadership style no longer works. Today’s leaders must engage with their teams, support their career growth and create an environment where employees feel valued. It’s a shift from dictating to collaborating.” 

With more than a decade of experience recruiting senior executives, Munro has identified four key areas where leadership expectations have shifted significantly:

1. Equity, diversity and inclusion (ED&I)

“A decade ago, ED&I was barely mentioned in job descriptions. Now it’s something most businesses are prioritising. Leaders are expected to not only champion diversity but actively create inclusive environments where all employees feel valued and heard.”  

2. Flexible working 

The transition to hybrid and remote work has posed new challenges for leaders. “Many managers and senior employees are still learning how to effectively lead remote or hybrid teams. When hiring for top C-suite positions, we often find that flexibility and adaptability are among the most in-demand leadership traits.” 

3. Emotional intelligence  

“When we’re recruiting for top-level executive roles, of course experience is key, but personality and emotional intelligence are just as crucial. It’s no longer enough to simply deliver results. Employees want leaders who listen, support and inspire. They want real people who they can get on a level with and relate to.” 

4. AI 

Beyond traditional leadership skills, the integration of AI is reshaping executive expectations. “In the past, leaders only needed a high level understanding of technology. Now, they are expected to fully grasp how AI can be used to drive business growth and efficiency.” 

As AI continues to disrupt industries, organisations are seeking leaders who can harness its potential while maintaining a human-centric approach to management.

“Technology is advancing rapidly, but the ability to lead and inspire people remains irreplaceable,” Munro explains.  

Finding the right leaders

With workplace expectations shifting and leadership demands evolving, finding the right executives has never been more complex.  

“Today’s leaders must navigate a rapidly changing environment,” says Munro.

“The right leadership isn’t just about experience. It’s about adaptability, emotional intelligence and the ability to inspire teams in a rapidly evolving world. Getting it right is absolutely critical to businesses success.”