Most managers unprepared, face mental health strain

Two-thirds of new hires lack the necessary experience for their roles, according to Deloitte’s 2025 Global Human Capital Trends report.

The global survey, shared by Deloitte Cyprus on Thursday, found that 66 per cent of managers and executives say most recent hires are not fully prepared, with a lack of experience cited as the most common shortcoming.

This insight is part of a broader set of findings from nearly 10,000 business and human resources leaders across 93 countries.

The report, titled Turning tensions into triumphs: Helping leaders transform uncertainty into opportunity, explores how businesses are grappling with critical workplace challenges and how they can turn these tensions into long-term value.

The research focuses on how organisations are balancing immediate performance demands with deeper transformations in talent development, managerial roles, and Artificial Intelligence (AI) integration.

Deloitte found that the declining number of traditional entry-level roles is making it increasingly difficult for workers to gain the experience needed for advancement.

This disappearing experience ladder has created tension between the expectations of organisations and the realities facing new employees.

“Workforces as a whole, rather than people as individuals, have long been at the centre of most workplace strategies,” said Simona Spelman, US Human Capital National Leader and Principal at Deloitte Consulting LLP.

“But when we look more closely at each worker’s skills, tasks, motivations and well-being, we can better incentivise them to stay longer and think more creatively about how their organisation can succeed,” she added.

To address the experience gap, Deloitte recommends that organisations adopt skills- and potential-based hiring rather than relying on rigid experience requirements.

Seventy-three per cent of executives and 72 per cent of workers agreed that organisations should do more to connect employees with opportunities to build experience.

At the same time, 74 per cent of survey respondents – including workers, managers and executives – believe that prioritising human capabilities is very or critically important.

The report also revealed that 73 per cent of organisations recognise the need to reinvent the role of the manager, but only 7 per cent say they are making strong progress.

Managers today spend almost 40 per cent of their time on administrative duties and short-term problem-solving, while only 13 per cent is dedicated to developing team members.

Compounding the issue, 36 per cent of managers report feeling unprepared for their role as people managers, and 40 per cent say their mental health has declined since taking on managerial responsibilities.

“Organisations are increasingly eliminating or reducing middle management roles to enhance efficiency, agility, and worker empowerment, driven by economic pressures and the rise of AI,” said Charis Kourtelli, Director in the Human Capital team at Deloitte Cyprus.

“Despite this trend, managers play crucial roles in coaching, developing, and motivating employees, redesigning work for AI collaboration, and enabling strategic problem-solving and innovation,” she noted.

“Reinventing the manager role is essential to adapt to the new world of work,” she added.

“Organisations should support managers by leveraging AI for real-time insights, democratising process redesign, and empowering decision-making,” Kourtelli explained.

Kourtelli also said that “developing managers’ judgement skills is key to navigating complex and volatile work environments to drive better human and business outcomes.”

Another key area examined by the report is how AI is changing the modern employee value proposition (EVP), or the set of reasons why people choose to work for and remain with an organisation.

The company said that as human-AI collaboration becomes more common, the EVP must evolve to meet the new needs of workers in an AI-powered workplace.

Over 70 per cent of managers and workers said they are more likely to join or remain at an organisation if its EVP helps them succeed in a technology-enhanced environment.

The report also found that 52 per cent of business leaders believe that closer collaboration between humans and machines holds very or critical importance for organisational success.

It further noted that clear communication from leadership about how AI will shape job roles, career growth and work-life balance can help to build trust and engagement among employees.