People leaders were 1.7 times more likely to experience high stress than individual contributors in 2025, according to a new report by McLean & Company.

It found leadership demands continued to rise as workplace complexity, technological change and shifting employee expectations accelerated faster than organizations could support, with many leaders acting as “organizational catch-alls” who are expected to deliver results, drive strategic alignment, support culture and provide emotional guidance without the clarity or capacity needed to do the job effectively.

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The report also found 40 per cent of people leaders were unable to maintain work-life balance. Respondents pointed to workload volume and the emotional labour of helping teams navigate ongoing disruption. In addition, 73 per cent said leaders’ skill sets would need to change completely or almost completely by 2030. The rise of artificial intelligence and the growth of distributed teams added further responsibility and pressure.

“People leaders are carrying a workload that has expanded far beyond what the role was ever designed to support,” said Lexi Hambides, director of HR research and advisory services at McLean & Company, in a press release. She noted leaders were expected to coach, inspire, support well-being and drive strategy while operating through continuous change, leaving even strong performers overwhelmed without clearer expectations and greater capacity for human-centred leadership.

The report also found 74 per cent of organizations struggled to develop effective people leaders, with workload pressure identified as the top barrier. This strain contributes to pipeline risk, as many high-potential employees opted out of leadership roles due to stress and limited reward. Those who did step into these roles often lack human-centred competencies such as empathy, emotional intelligence, and relationship building that will be increasingly important as AI takes on more routine tasks, the report noted.

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