Overrated, overpaid, obsolete. Too strict, too soft, too modern. Too stuck in the past. Few topics in HR spark more debate than leadership. And in times of crisis or economic pressure, it’s often treated as a cost-cutting target. Flatten the hierarchy, cut a few layers—problem solved.
Or is it?
Before you make leadership the next thing to scale back, it’s worth asking: what’s the actual cost?
Here’s our take on three of the most divisive leadership beliefs of 2025. And why leadership, when done right, is still one of the smartest investments you can make.
#1. “In times of crisis, we need more authoritarian leadership”
When SAP and Amazon ordered employees back to the office, it wasn’t a conversation. It was a directive. Framed as a push for collaboration and strengthening the culture, many saw it for what it was: a quiet headcount reduction disguised as strategy1.
The backlash was predictable. Employees resisted. Works councils took legal action. Trust eroded.
Still, this kind of top-down leadership keeps resurfacing under pressure and is often also gaining support. In Germany, for instance, a 2024 study found that 62% of respondents believe more authoritative leadership is needed during a crisis2.
But that belief isn’t universal and it doesn’t always hold up. In the Netherlands, leadership norms and expectations look very different. They’re shaped by the polder model, a tradition of consensus, shared responsibility, and open dialogue. Here, command-and-control decisions often clash with cultural expectations and tend to backfire.
Authoritarian leadership can be efficient, but it rarely works for long.
Yes, it may speed up decisions. But it also shuts people out, kills engagement, and builds dependency. Over time, teams stop thinking for themselves and start waiting for direction.
When decisions are made behind closed doors, without input from the people expected to carry them out, trust collapses, and so does performance.
And it’s not just the teams who suffer. Many managers feel ill-equipped to navigate crises. According to McKinsey’s 2023 report,only half of surveyed organizations felt prepared to respond to future shocks, indicating a significant gap in crisis readiness3.
Our take? The problem isn’t a lack of authority. It’s a lack of skill, support, and feedback.
Strong leadership under pressure means knowing when to step forward, and when to listen. It means trusting your team, not micromanaging them. And it depends on having the right support from the top.
It also depends on knowing what your people actually need. Because leaders who fly blind, without feedback, make decisions that don’t stick. You can’t lead in the dark.
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#2. “Young people don’t want leadership roles anymore”
The old-school image of leadership—commanding, top-down, always-on—still shapes what many people think a “real” leader looks like. But Gen Z isn’t buying it. Fewer young professionals want to step into leadership roles.
And frankly, who can blame them?
They see management as high stress, low appreciation. Long hours, constant availability, and less time for life outside work. Not exactly an inspiring offer.
But they’re not rejecting leadership. They’re rejecting that version of it.
Younger employees value purpose, flexibility, and growth. These are higher on the list than power and job titles. If we want them to step up, we need to rethink what leadership looks like and how we prepare people for it.
Our approach: Focus on practical, feedback-driven leadership development.
That means ditching the idea that there’s one “right” way to lead. People should be encouraged to lead in a way that fits how they work, not how someone else did it a decade ago. And in a way that fits their team and context.
When organizations do that, they build competence and confidence. Leadership becomes something people grow into, not something they avoid.
Across Europe, more organizations are shrinking their management layers. It’s framed as a way to reduce overhead, speed up decisions, and modernize how work gets done.
But there’s a cost no spreadsheet shows.
Middle managers do more than assign tasks or sit in meetings. They’re the ones translating strategy into action, guiding teams through uncertainty, and keeping people aligned when the pressure’s on. They shape how people experience their work, especially during change.
Cutting that layer might save money upfront. But it often leads to confusion, misalignment, and burnout.
Work doesn’t disappear, it just shifts downward, often to employees who aren’t equipped (or paid) to take it on.
And at a time when businesses face constant transformation like digitization, ESG pressures, new workforce expectations, effective leadership is more important than ever. You need people who can lead change, not just execute it.
Our data backs this up. Organizations with strong leadership see measurable gains:
The future of work isn’t leaderless. It’s leadership done better
The real issue isn’t the number of managers. It’s whether they’re supported, clear on their role, and equipped to lead well. Without feedback, direction, and development, no manager can succeed, no matter how flat the org chart.
At Effectory, we help organizations give leaders what they actually need: real insight into their teams, clear direction, and the feedback to improve where it counts.
Because the future of work isn’t about having fewer leaders. It’s about having better ones.
Curious how we help organizations build better leadership at every level?
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