Australia’s leadership capabilities are facing a critical challenge, struggling to keep pace with evolving best practices and the demands of a future-ready workforce. This lag, according to Nicole Mathers, a leading workplace culture and emotionally intelligent leadership expert and co-founder of Uncapped Potential, is having significant negative consequences for customer and employee experiences, and ultimately, the success of businesses nationwide.
Mathers warns that Australian organisations are at risk of falling behind global benchmarks for leadership effectiveness due to a number of factors:
- The COVID-19 exodus: The pandemic saw a significant number of experienced, emotionally intelligent leaders retire or step back, creating a void in seasoned mentorship.
- The rise of transactional management: Increased screen time and a lack of face-to-face interaction have fostered a shift towards transactional management, resulting in a de-skilling of quality leadership across the country.
- Mentorship deficit: Emerging leaders have been deprived of crucial mentorship opportunities, hindering their ability to navigate today’s complex business environment. “Leadership is a contact sport,” Mathers asserts, emphasising the importance of direct guidance.
“There are managers and then there are leaders, and there is a difference,” Mathers explains. “Leaders have the ability to connect, engage, read people, and understand how to inspire, lift, and impact thinking, behaviour, and outcomes.”
The impact of this leadership gap is already evident, with organisations experiencing talent drain, declining innovation, and difficulty maximising the potential of their people. Mathers stresses the urgent need for organisations to “rethink their leadership mandate” and rebuild leadership capability to ensure future leaders are equipped with the skills needed to drive engagement, innovation, and performance.
Recent Gallup research from their 2024 global workplace report indicates Australian leaders are struggling in three key areas: employee recognition, transparent communication and decision-making, and employee well-being. Mathers comments, “Australia’s employee recognition rates are 2% below the global average, negatively impacting engagement and performance. Furthermore, 48% of Australian employees report significant stress, exceeding the global average of 44%. Regionally, Western Australia has a relatively low 21% employee engagement, while 11% of Australian employees are actively disengaged, also above the global average”.
“For Australia to remain globally competitive and achieve sustainable growth, leaders must prioritise culture and leadership development, moving beyond a sole focus on profit and aligning with global best practices.”
Impact on customer and employee experiences
The intersection of customer and employee experience significantly influences performance, service quality, responsiveness, brand perception, and trust. Particularly in sectors like tourism and hospitality, these connections are critical.
Mathers observes, “Leaders exhibiting low emotional intelligence and poor self-regulation create high-risk environments. This directly impacts employee behaviour, as they may perceive unprofessional conduct as acceptable. Consequently, employees may struggle to manage their own emotions, leading to negative shifts in tone, body language, and communication with customers. These observable changes can significantly damage customer experience and brand trust.”
Transforming leadership development
Mathers calls for a fundamental shift in leadership development strategies, moving away from generic theory and off-the-shelf training programs towards contextualised and personalised programs.
“With the continued acceleration of societal and technological changes, organisations need structured leadership development programs that provide clear pathways for growth,” she states. “Training needs to be customised, delivered by practitioners that have done the job and can provide meaningful insights through their lived experience. Effective leadership programs are built around emotional intelligence competencies.”
Investing in emotional intelligence:
Emotional intelligence is not a peripheral skill, but a core competency that directly influences organisational culture, employee engagement, and ultimately, business success. Leaders who demonstrate self-awareness, empathy, and strong interpersonal skills foster environments of trust and collaboration. This recognition is essential for cultivating sustainable growth and navigating the complexities of modern workplaces.
Recognising the critical role of emotional intelligence in effective leadership, Mathers emphasises the need for training in self-awareness, relationship management, social awareness, and self-regulation.
“Emotionally intelligent leaders build trust to inspire and motivate – fostering collaboration, adaptability, and a growth mindset,” she explains. “By balancing logic, smarts, and emotional awareness, they create engaged, high-performing teams that drive innovation and long-term success.”
Holding leaders accountable for people development
Holding leaders accountable for people development is a crucial aspect of modern organisational success. It signifies a shift from viewing employees as mere resources to recognizing them as people that require nurturing and growth. Mathers advocates for a shift in performance metrics, urging organisations to measure and reward leaders for their ability to develop and nurture talent. “The measure of a true leader is how many leaders they have developed,” she asserts.
Embracing Continuous Learning and Leadership Evolution:
Mathers emphasises the importance of continuous learning and adaptation, highlighting that “leadership isn’t static, it must evolve with the workforce.” Organisations must provide ongoing education, feedback loops, and adaptive leadership strategies to ensure their leaders remain engaged and growing.
By implementing these strategies, Australian businesses can ensure their leaders, both current and emerging, are equipped to drive success in the face of evolving challenges and opportunities.