What Makes a Good Leader? The Core of Leadership [2025]

Leadership is more than a title—it’s about inspiring action and fostering trust. While bravery and innovation matter, the foundation of effective leadership lies in understanding what followers need.

Gallup’s latest study, “Global Leadership Report: What Followers Want,” was unveiled at the World Governments Summit. Drawing on surveys from 52 countries, this comprehensive report builds upon decades of research examining people’s expectations of their leaders. This article discusses these revealing insights, alongside findings from other studies, to present a practical strategy for leaders aiming to lead effectively in 2025.

Our starting point will be the fundamental question that emerges whenever leadership is discussed:

What Makes a Good Leader?

Gallup’s global research reveals that followers prioritize hope, trust, compassion, and stability from their leaders. These needs are universal, cutting across cultures and industries. In Australian workplaces, where hybrid work and shifting values are redefining norms, addressing these needs is critical to bridging the leadership gap and improving employee well-being.

The demands of leadership are evolving. The 2025 Skills Horizon report highlights that leaders must now navigate geopolitical shifts, AI-driven workplaces, and a multi-generational workforce. For Australian organizations, this means rethinking traditional leadership models. By focusing on followers’ core needs, leaders can create environments where employees thrive, productivity soars, and the leadership gap narrows.

The Global Perspective: What Followers Want

What Do Followers Really Want?

Gallup’s study of 30,000 adults across 52 countries shows that 56% of all leadership attributes tied to positive influence relate to hope. Followers crave leaders who provide a clear vision for the future. Trust ranks second (33%), emphasizing the need for integrity and reliability. Compassion (7%) and stability (4%) round out the list, highlighting the importance of emotional support and psychological safety. These needs are consistent globally, whether in Australia’s corporate offices or India’s manufacturing hubs.

The link between leadership and well-being is undeniable. Gallup found that when leaders fail to provide hope, only 33% of followers thrive, and 9% suffer. However, when hope is present, thriving rises to 38%, and suffering drops to 6%. This data underscores a stark reality: leadership isn’t just about strategy—it’s about reducing human suffering. As the Skills Horizon report notes, “Leaders must act as dealers in hope” to navigate today’s “decade of disorientation.”

Leadership Challenges in the Australian Workplace

Australian workplaces face unique challenges. The Skills Horizon report warns of a “values shift,” where younger generations demand purpose-driven leadership, while older employees seek stability. Gallup data reveals that 34% of Australian employees name workplace leaders (managers, colleagues) as their most positive influence, slightly below the global average. This signals a leadership gap—where employees feel disconnected from their leaders’ vision.

Poor leadership costs Australia dearly. A 2023 Gallup study found that disengaged teams have 21% lower profitability. In sectors like healthcare and education, where compassion is critical, burnout rates exceed 40% (Australian Institute of Health and Welfare). To close the gap, leaders must prioritize improving leadership skills that align with followers’ needs, such as active listening and transparent communication.

The Four Needs of Followers: What Are They?

Hope:

Hope is the cornerstone of leadership. Gallup notes that 59% of Asia-Pacific respondents prioritize hope, driven by younger generations seeking inspiration. In Australian workplaces, leaders can foster hope by setting clear goals and celebrating milestones. For example, Atlassian’s “ShipIt Days” empower teams to innovate, aligning with the Skills Horizon’s reports call for “persuasive story crafting” to inspire action.

Trust:

Trust is built through consistency and honesty. The Skills Horizon highlights “building trust at scale” as a critical skill, especially in hybrid work environments. When Woolworths faced supply chain crises during COVID-19, CEO Brad Banducci’s transparent updates rebuilt stakeholder trust. Gallup’s data shows that teams with high trust report 50% higher productivity.

Compassion:

Compassionate leaders create psychologically safe spaces. The Skills Horizon urges leaders to adopt “humanities thinking”—using empathy to resolve conflicts. At Canva, co-founder Melanie Perkins prioritizes mental health programs, reducing turnover by 30%. Gallup confirms that compassionate leadership boosts engagement, with 70% of employees feeling valued when leaders show genuine care.

Stability:

In uncertain times, stability is non-negotiable. The Skills Horizon warns of an “energy shift” disrupting industries, requiring leaders to provide reassurance. During the 2022 floods, Qantas CEO Alan Joyce’s swift communication minimized panic, exemplifying stability. Gallup found that employees with stable leadership are 3x more likely to stay loyal to their organization.

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Which Leaders Make the Biggest Impact?

Which Leaders Make the Biggest Difference in People’s Daily Lives?

Family members top Gallup’s list, with 44% of global respondents citing them as their most positive influence. In Australia, where work-life balance is prized, family leadership often translates to emotional resilience. Workplace leaders (managers, colleagues) follow at 34%, but Gallup notes a gap: only 6% of non-employed individuals name workplace leaders, signaling a need for inclusivity.

Political and religious leaders lag at 7% each, reflecting global skepticism toward institutional figures. Celebrities rank last (2%), underscoring that influence is earned through daily actions, not fame. The Skills Horizon adds that “leaders in the world of work have a huge capacity to improve lives”—but only if they prioritize connection over authority.

Leadership in the Workplace: A Playbook for Australian Leaders

Know the Needs of Your Followers

Use Gallup’s four needs as a checklist. For example, hold monthly “hope workshops” to align teams with organizational vision. The Skills Horizon recommends “Gen AI for productivity” to automate tasks, freeing leaders to focus on empathy-driven interactions.

Know Yourself

Gallup’s StrengthsFinder tool helps leaders identify innate talents. A Sydney-based tech CEO used this to shift from micromanaging to mentoring, boosting team innovation by 40%. The Skills Horizon adds that “self-leadership” skills like time management are critical in hybrid settings.

Know the Demands of Your Role

Balance stakeholder expectations with ethical AI use. The skills Horizon cites IBM’s focus on “digital ethics” as a model for Australian firms. For example, Afterpay’s transparent AI algorithms build consumer trust while meeting regulatory demands.

The Future of Leadership: Adapting to a Changing World

We identified the following five shifts reshaping leadership: values, technology, accountability, trust, and energy. For Australian leaders, this means embracing “probabilistic thinking”—preparing for multiple scenarios, like AI disruption or climate crises. BHP’s net-zero transition plan, aligned with Gallup’s stability pillar, shows how foresight mitigates risk.

Curiosity is the new leadership currency. The Skills Horizon profiles “The Curious Leader,” who asks questions like, “What if?” and “Why not?” CSIRO’s AI ethics framework, developed through stakeholder dialogues, exemplifies this. As Nobel laureate Daniel Kahneman urged, “Leaders must find joy in changing their minds.”

Conclusion: The Path to Better Leadership

The Gallup report and Skills Horizon report agree on this: leadership success hinges on hope, trust, compassion, and stability. For Australia, this means upskilling leaders in empathy, AI fluency, and crisis management. By closing the leadership gap, organizations can boost well-being, loyalty, and productivity—proving that good leadership isn’t just ethical, it’s economical.