One cannot deny that the business landscape today is filled with constant change and uncertainty. The recent wave of tariffs and trade frictions has once again introduced significant volatility into the global economy, prompting executives to adopt a more cautious stance in their strategic planning. The ongoing advancement of AI and automation has also shocked the world, with the potential to transform 86% of businesses by 2030.1 Within organizations, there is also a growing emphasis on driving transformation, as evidenced by a projected compound annual growth rate of 24.75% in the global digital transformation market in the next 10 years.2
In times of ambiguity, employees naturally look to their leaders and managers for guidance, direction and support. This indicates that the expectations placed on managers and leaders are continually rising. Business and HR leaders are increasingly recognizing the importance of equipping people managers, particularly first-time managers, with essential leadership skills. According to Mercer’s Global Talent Trends Study 2025, improving people managers’ skills has become the top priority both globally and in Hong Kong. This raises a key question: What leadership skills does our workforce need to thrive in a volatile environment, and how can we develop them?
Mercer surveyed HR leaders from 58 organizations in Hong Kong* and it is no surprise that the leadership skills they seek are tailored to meet the challenges of today’s complex and dynamic environments, ranging from tackling complex problems with critical thinking to driving innovation and managing risks (Figure 1). However, being a great leader involves more than just possessing the right skills. An article in the Harvard Business Review highlights eight key attributes essential for effective leadership, including resilience, adaptability, and empathy.3 Together, these skills and attributes empower leaders to make informed decisions, engage their teams effectively, and navigate change with confidence.
Ensuring that your leaders and people managers possess these critical skills requires a comprehensive talent management approach that extends well beyond occasional training workshops. Based on our observations with clients, organizations are taking concrete steps by incorporating the following 4 elements into their talent management framework:
Despite these efforts to enhance talent management strategies, fewer than half of organizations feel confident in having a sustainable, skills-ready, and adaptable leadership pipeline, according to Mercer's Global Talent Trends Study. So, what is hindering our leadership development journey? Here are 3 common pitfalls observed among many of our clients:
While it is encouraging that HR leaders are prioritizing skill enhancement for leaders and people managers, the key to success lies in focusing on doing the right things for the right people. Here are key considerations for your leadership development strategy:
Investing in leadership development is not just an investment in skills; it is an investment in the organization's future. By nurturing HiPos and empowering them with the skills necessary for effective leadership, companies can cultivate a resilient workforce with leaders who inspire innovation, drive meaningful change and thrive in a competitive landscape.
To learn more about Mercer Hong Kong’s capabilities in leadership development consultancy, get in touch with us for an in-depth conversation.
is an Associate Director, Talent & Transformation Consulting with Mercer Hong Kong
is a Career Consulting Analyst, with Mercer Hong Kong
