News Five traits managers need to succeed in 2025

Five traits managers need to succeed in 2025

Faculty Alex Newman

With economic headwinds, Trump in power and rapid AI integration, managers need to hone these key traits to navigate the complex business environment.

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Australia is facing a challenging economic landscape.

While there is hope for some recovery this year, uncertainties around interest rates, inflation and the impact of the US election on the global economy are still driving organisations to err on the side of caution when it comes to resourcing.

For managers, this raises the question of how to increase productivity using the same amount or fewer resources, whilst still protecting the well-being of their employees.

When it comes to these two opposing pressures, there are five traits managers can hone to get the most out of their people this year.

1. Empathy

Employees are increasingly looking for leaders who genuinely listen and understand their challenges in and outside of work.

Leaders who demonstrate empathy create a sense of psychological safety, making employees feel valued and supported, which ultimately leads to increased performance.

This is not just about showing kindness; it’s about active listening - actively putting yourself in your team members’ shoes and responding with compassion.

Employees that feel heard and understood are more likely to respond by doing not just what's required at work, but by demonstrating ‘felt obligation’ - the need to reciprocate positive behaviour and give back in the workplace.

By prioritising empathy, managers can foster loyalty and encourage their teams to go the extra mile, even in challenging times.

2. Courage

In 2025, managers will face significant economic headwinds, with tightening budgets and potential layoffs becoming more common, especially in the tech sector.

Often during difficult times leaders bury their heads in the sand and think they can continue with the status quo, but leaders will need courage to make tough decisions this year.

These aren't necessarily popular changes in an organisation, and this can be particularly difficult for new managers who are more likely to want to be seen as agreeable to their subordinates.

Courage requires understanding that not everybody's going to like all the decisions you make and having the strength to make hard choices for the greater good of the organisation, despite potential pushback

Courageous managers don’t shy away from change but instead are proactive, taking calculated risks and leading their teams through uncertainty. 

3. Resilience

In an era marked by rapid technological advancements and economic volatility, managers will need resilience to help their teams stay focused and motivated through tough times.

Resilient managers can adapt to adversity and embrace challenges as opportunities for growth. Importantly, they are also able to encourage their teams to do the same.

Usually, resilience is built through overcoming tough situations, but there are some pro-active ways you can build your resilience.

One way is through journalling. Train resilience by taking time each day or every few days to reflect on challenges you’ve overcome, what you might do differently in the future when faced with a similar challenge and identifying some of the positive ways you’ve handled challenging situations in the past.

Peer support is another tool that can help build resilience. Ask your organisation for a leadership coach or reach out to someone in your network who might be able to act as a mentor and share advice around similar challenges they’ve faced.

4. Self-Awareness

Self-awareness, a key aspect of emotional intelligence, is another important trait for becoming a better manager in 2025.

Research has found emotional intelligence is a better indicator than IQ of increased citizenship behaviour in leaders – employees willing to go above and beyond for their colleagues and organisation

Managers who are aware of their own emotions are also better equipped to manage conflict at work and adapt their leadership style to meet the diverse needs of their employees.

Mindfulness is a tool that can help strengthen your emotional regulation and lead to greater emotional intelligence.

As a manager, consider arranging a 360-degree review with colleagues who are junior, senior and at the same level, to see how you're perceived and what you can do differently in the future.

Reflecting on your own strengths and weaknesses and how you might be seen by other people can be a challenging exercise but will build self-awareness.

It’s important not to take negative criticism to heart as this can create self-doubt, but knowing your weak spots and picking up on several things to work on will make you a better manager.

5. Curiosity

Research shows leaders who demonstrate curiosity make their employees feel valued, leading to higher engagement and innovation.

People usually don't expect leaders to be curious, to ask their subordinates questions and get to know them. But by showing interest in your employees, you build stronger relationships and create greater psychological safety in the workplace.

This makes employees more likely to speak up, contribute additional value to an organisation and play to their strengths.

Questions managers can ask to demonstrate curiosity include “what interests you most about your job?”, “are there other areas or work that might suit you better?” or “what are some things you would like to do in the future”?  

Research has found male leaders can particularly benefit from curiosity as it is traditionally expected from female leaders.

By being curious about your team members, you can uncover opportunities for growth and development, ensuring that both the individual and your organisation thrive.

The business environment of 2025 is uncertain, and the pressure on managers to lead effectively will be higher than ever. By focusing on developing empathy, courage, resilience, self-awareness, and curiosity, managers can navigate these challenges with confidence and help their teams succeed.

These traits not only enhance leadership effectiveness but also build strong, supportive workplace cultures that can weather even the most difficult economic storms.

Alex Newman is Professor of Management and Associate Dean Faculty at Melbourne Business School. He is one of Australia’s leading researchers in the field of management. 

The New Leader Development program is designed to give new leaders the confidence, skills, and self-awareness to become an effective leader. Visit the program page to find out more and apply for the next intake on 24-28 February.  

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