74% of HR leaders say managers are not equipped to lead change

A striking 74 per cent of HR leaders believe that managers are not equipped to lead change, according to a report conducted by Gartner, a management consulting company based in America, which surveyed over 1,400 HR leaders from more than 60 countries.

This staggering figure highlights the challenges faced by organisations in navigating an era marked by constant transformation and adaptation.

The findings are clear: leadership and manager development, organisational culture, strategic workforce planning, change management, and HR technology are at the forefront of HR leaders’ agendas.

While leader and manager development ranked highest among these priorities, change management emerged as a significant concern, particularly given the number of HR leaders expressing doubt in their managers’ capabilities to handle change effectively.

Leader and manager development

Leadership development has become more urgent than ever.

Despite updates to training programmes, only 36 per cent of HR leaders feel confident that their current initiatives adequately prepare leaders for future challenges. A majority (75 per cent) report that managers are overwhelmed by their expanding responsibilities, while 70 per cent state that current leadership training does not equip them to nurture mid-level leaders effectively.

This gap is troubling, especially as strong leadership is essential for managing and sustaining organisational change.

The need for a new approach is evident, and the report is urging organisations to adopt methods that include continuous, relationship-building activities that bridge the gap between theoretical training and real-world application. This facilitates the creation of a robust peer network that leaders can rely on for guidance and shared problem-solving.

Organisational culture

Another critical area highlighted is the difficulty in embedding desired organisational culture effectively.

Although 97 per cent of CHROs aim to enhance some aspects of their culture, actual implementation often falls short. With 57 per cent of HR leaders agreeing that managers struggle to enforce cultural values within their teams, the impact on employee performance and retention becomes significant.

The report stated that the solution involves equipping managers with practical tools and fostering accountability through transparent practices, meanwhile embedding cultural values into daily processes and leadership behaviour, and helping bridge the gap between the aspirational and operational aspects of culture.

Strategic workforce planning

Strategic workforce planning (SWP) remains another area of concern, with 66 per cent of HR leaders admitting that their efforts are mostly restricted to headcount planning, and 61 per cent saying their strategies extend only to a one-year plan.

This short-term focus limits an organisation’s ability to adapt to unforeseen changes such as market shifts or technological disruptions. Hence, the report recommends a phased “crawl, walk, run” approach for effective SWP.

This method allows organisations to gradually scale up their efforts, ensuring that deliverables, data, and talent strategies align with long-term objectives.

This strategic planning is vital to overcoming workforce uncertainty and aligning HR efforts with business goals.

Change management: Navigating fatigue and capability gaps

The theme of change management weaves through many of these priorities.

With 73 per cent of HR leaders acknowledging that employees are experiencing change fatigue, the negative consequences for engagement, retention, and psychological safety are stark.

Traditional top-down change management practices often fail because they don’t engage employees in a way that supports genuine transformation, added the report.

To address these challenges, said the report, HR leaders must shift from merely championing change to empowering employees and managers to own it. Meanwhile, identifying and leveraging change influencers within the organisation can significantly enhance the adoption and success of change initiatives.

This approach not only mitigates fatigue but also reinforces a culture of resilience and proactive adaptation.

HR technology: A strategic enabler with limitations

HR technology continues to play a crucial role but also poses challenges. More than half (55 per cent) of HR leaders state that current technology solutions fall short of meeting business needs, and only 25 per cent believe their staff embraces technology’s transformative potential.

The report highlights the pitfalls of focusing solely on efficiency gains rather than transformative capabilities, which can trap value within rigid processes.

Optimising the impact of HR technology requires a strategic approach that enhances user experience, aligns with evolving business needs, and supports cultural shifts essential for full adoption, the report stated.

As 2025 approaches, HR leaders are urged to reconsider their strategies to tackle these persistent challenges. Effective leadership, a well-rooted organisational culture, forward-looking workforce planning, adaptable change management, and leveraging HR technology are pivotal to thriving in a landscape defined by change. Empowering managers to lead change, supporting them with the right tools and training, and engaging employees in the process will be essential for sustainable progress.