What should business leaders focus on in 2025? Expert insights on key priorities for business leaders in the year ahead.

As another year begins, many business leaders are focusing on their plans for the months ahead. With the evolving expectations of employees, customers and society, organisations must keep pace if they are to remain competitive. But in a world with increasing demands and stretched resources, where should leaders be turning their attention in 2025? Here experienced leaders have offered four key focus areas leaders should be embedding into their business plans this year.

Pay and reward
As workplace transparency and fairness take centre stage, pay and reward strategies are under increasing scrutiny. Making the shift from subjective methods toward frameworks that promote clarity and equity will be key to improving employee trust, retention, and long-term engagement. For Rameez Kaleem, founder and CEO of pay and reward consultancy 3R Strategy, developing robust and data-driven frameworks for pay decisions should be a priority in 2025. This means moving away from gut-feeling decisions and towards structured and fair approaches that can be clearly communicated to all employees. To share these pay frameworks effectively, organisations should develop clear communication strategies and train managers to have open conversations about pay. "According to our recent report, while 57% of companies communicate about pay to some extent, there's a significant opportunity to improve both the reach and quality of this communication, to ensure employees understand how they can progress their pay and careers," notes Kaleem.

"Organisations should focus on building a comprehensive job architecture that links skills and contributions to pay. This transparency in career progression will be crucial for retention as employees seek clarity about their growth potential and pay progression opportunities," he adds. In 2025 and beyond, leaders should prepare for increased scrutiny of pay gaps across all demographics, highlights Kaleem. With the Labour government hinting at this in its manifesto, organisations should be proactive rather than waiting for new legislation.

Purpose and sustainability
As the demands on modern leaders grow increasingly complex, sustainability has become a guiding principle not just for environmental practices but for how organisations manage their people and energy. For Josefine Campbell, executive coach and author of 12 Tools for Managing a Selfish Leader, prudent leaders must prioritise sustainability in all facets. "Aligning business goals with meaningful objectives that can shape people's lives in a positive way now will be essential, reflecting a broader societal shift toward ethical and sustainable practices," she says, but this is not solely in environmental terms. This should also include how they manage people and organisational energy. "Key focuses include cultivating resilience within teams, fostering trust, and ensuring mental agility to navigate uncertainty." Leaders can protect this energy by focusing on employee engagement and creating environments where individuals feel valued and heard. Campbell concludes that investing in leadership development to enhance awareness and agility will be crucial for sustaining momentum and driving long-term success.

Digital implementation
The question of leadership effectiveness is shifting from defining goals to mastering execution. Success in 2025 will hinge not only on what strategies organisations pursue but on how they implement them. As Jeremy Blain, CEO of PerformanceWorks and co-author of OpenHR notes, the leadership question for 2025 has moved from what needs to be done to how to do it. Strategies succeed 1 in 3 times, and for Blain, that failure rate is all about the implementation. "The more leaders focus on the how and execution element, the greater success in transformational terms as much as business growth terms we will see," he says. To accelerate digital transformation and increase effective implementation, leaders need to focus on unleashing the power and potential of talent across the organisation. This includes empowering individuals with autonomy and accountability to implement transformation, as well as closely integrating the rising wave of freelance, specialist talent. "Incorporating these elements gives the best chance for leaders to protect short-term success with long-term, secure and customer-centred growth for the future," Blain points out.

Adaptive and resilient leadership
As the business landscape continues to evolve, leaders are increasingly tasked with navigating uncertainty while fostering innovation and connection. In this environment, resilience has emerged as a critical competency, both for employees and organisations. Leadership coach and author of ReThink Resilience Beth Benatti Kennedy emphasises that resilience is not just a personal trait but a strategic priority, vital for building adaptable and future-ready teams. "In 2025, business leaders need to prioritise building a resilient workforce by modelling resilience and communicating that resilience as a business competency is a priority and not just the flavour of the month," argues Benatti Kennedy. Resilience can be developed with systemic training that is designed to appeal to different learning styles and is part of a continuous learning culture.

Resilience is key to adaptive leadership, Kennedy says, which will be crucial to harnessing diverse perspectives and fostering connection and innovation. Being adaptive means listening to employees to understand their individual drivers and motivations, which is key to increasing retention. Furthermore, in the new hybrid work environment, the most successful companies will avoid rigid rules and instead focus on building robust, adaptable organizations where individuals can leverage their skills and knowledge to make a meaningful impact. "By focusing on these areas, leaders can build organisations that are resilient and ready to meet future challenges," Kennedy concludes.

As businesses prepare for the future, the need for visionary and adaptable leadership has never been clearer. The challenges of 2025 will be defined by rapid technological advancements, changing workforce dynamics, and growing demands for transparency and fairness. To succeed, leaders must shift from traditional methods of management to embrace a more holistic, people-centric approach that prioritises resilience, sustainability, and purposeful growth. At the core of this transformation is the importance of transparency in organisational processes, particularly in areas like pay and reward. As employee expectations evolve, so too must the systems that underpin their trust in leadership. Companies that develop clear, fair frameworks for pay decisions and communicate them effectively will not only improve employee satisfaction but also position themselves as leaders in the increasingly competitive landscape. Transparency, however, extends beyond compensation; it's about fostering an open, honest dialogue between leaders and employees about opportunities for growth, career progression, and the values that drive the organisation.

Businesses are increasingly being called to align their operations with broader societal and environmental goals. Sustainability is no longer a fringe issue but a critical part of how companies operate, influencing everything from employee treatment to the long-term direction of the business. Leaders must engage with the complexities of sustainability, ensuring it is integrated into both corporate culture and decision-making. This involves building a resilient workforce that can navigate uncertainty, while fostering a culture of trust and shared purpose.

In the age of digital transformation, success hinges not only on adopting new technologies but on executing strategies effectively. The rapid pace of change demands leaders who are not just strategic thinkers but also skilled implementers, able to navigate their teams through the complexities of disruption. Empowering employees with the autonomy and resources to drive change, while fostering diverse talent across the organisation, will be key to staying competitive. Companies that invest in developing their workforce's skills will be best positioned for long-term success.

Finally, as the business environment becomes increasingly volatile, adaptive leadership will be crucial for success. Leaders must embody resilience, cultivating a culture that values flexibility, encourages innovation, and empowers employees to thrive in uncertainty. This approach will help businesses not only survive the inevitable disruptions ahead but also turn them into opportunities for growth.

The path ahead may be complex, but it offers endless potential for organisations that are willing to prioritise transparency, sustainability, and adaptive leadership. The future belongs to those who can navigate uncertainty with purpose, cultivate strong, resilient teams, and build organisations that are as agile as they are forward-thinking. Will your organisation be ready to embrace these challenges and lead the way?