If you had to sum up the workplace of the 2020s in one word, it would be this: transformation. Automation, hybrid work, an endless stream of new artificial intelligence tools — it’s a lot to keep up, to put it mildly.
With the ground constantly shifting under their feet, many employees are naturally turning to their leaders for guidance. But only 39% strongly agree that their leadership is visibly supporting transformation, according to Multiverse’s Skills Intelligence Report 2025.
With the AI revolution just getting started, employees need inspiring leaders to help them adapt. The answer? Transformational leadership. It focuses on creating positive change and motivating teams to grow.
Looking to take on more responsibilities in your current role or level up your career? Gaining transformational leadership skills will help you guide your workplace into the future.
What is transformational leadership?
Transformational leadership embraces new ideas and motivates employees to face change with enthusiasm and positivity. It’s all about empowerment and bringing people together to achieve a shared vision.
This leadership style is the opposite of the transactional leadership approach, which uses rewards and punishment to motivate followers. It’s a stricter approach that centers on hierarchies and structure.
Is a development team dreading working on a tricky update? A transformational leader will rally them to the cause and build excitement, while a transactional leader might say, “Do it by Friday, or you’re getting written up.”
Similarly, a transformational leader could encourage junior employees to pitch product ideas. But the transactional leader might only let senior staff weigh in — or, more positively, offer an incentive for the best suggestion.
As you might guess from these examples, the transformational approach often works better with today’s workers, who are less tolerant of unfair or harsh leadership. In fact, 67% of UK employees(opens new window) have quit or thought about leaving a job due to poor management.
Younger workers are also quick to reject the usual workplace status quo. Only 14% of Gen Z professionals(opens new window) believe traditional hierarchies work, and 30% would prefer a team-based structure.
Transformational leadership responds to these changing expectations by creating a supportive environment — one without any Devil Wears Prada-esque tyrants.
The four pillars of transformational leadership
Transformational leaders might sound like cheerleaders or especially chipper coaches, but this approach is actually quite nuanced. Here are four key components of transformational leadership(opens new window):
Idealised influence
Transformational leaders don’t keep their core values a secret. They’re role models who lead by example. Someone who cares about open communication, for instance, might hold monthly town halls or explain why they promoted one employee over another.
They also inspire followers to focus on personal growth. This could be as simple as talking about how you’re upskilling(opens new window) by learning prompt engineering or showing your latest surreal Midjourney creation.
Inspirational motivation
A transformational leader encourages followers to work together to accomplish something great, whether that’s building a hospital or just fixing a bug. They’ve got a compelling vision that inspires motivation and enthusiasm, even when the team faces challenges.
For instance, GSK CEO Emma Walmsley(opens new window) reenergised the stagnant pharmaceutical company by shaking up the leadership team and investing more in consumer healthcare products and vaccines.
Intellectual stimulation
Challenging assumptions is another hallmark of transformational leaders. They invite team members to look at problems and opportunities from new angles, which helps inspire innovation.
In 2014, Anne Boden founded Starling Bank, one of the UK’s first fully digital banks. At first, potential investors were sceptical — or downright derisive. “Nobody believed me!” she explained in a McKinsey interview(opens new window). “People thought building new technology was impossible and also impossible to build from scratch.” Despite these doubts, Starling Bank now earns hundreds of millions of pounds in revenue.
Individualised consideration
Transformational leaders focus on mentoring team members and offering personalised support. For example, they may schedule monthly one-on-one feedback sessions. They also value continuous learning and create opportunities for employees to learn new skills like data analytics or public speaking.
Why develop transformational leadership skills?
Like public speaking or writing a memo, mastering visionary leadership takes effort and practice. Here are a few reasons why it’s well worth the investment.
Elevate your career
Almost three out of four tech leaders(opens new window) plan to invest more in AI in the next one to two years. That means transformation isn’t stopping any time soon.
Becoming a transformational leader can help you handle these changes with confidence — and, more importantly, get your team excited about what’s coming. For example, you might organise workshops on new AI tools or mentor individual followers who want to learn how to use Tableau. A little encouragement and positivity can make change — well, maybe not fun, but motivating.
Plus, gaining transformational leadership skills can future-proof your career. According to the Future of Jobs Report 2025(opens new window), the top five in-demand skills are:
- Analytical thinking
- Flexibility and agility
- Leadership and social influence
- Creative thinking
- Motivation and self-awareness
These are also key traits of an effective transformational leader — and that’s not a coincidence. Employers are actively searching for people who can lead change and help their organisations adapt.
Lift your organisation
The transformational leadership style also directly influences organisational effectiveness. And no, you don’t need to be a CEO or even a C-level executive to make an impact.
When employees feel valued and supported by their leaders, they have a better experience. For example, nurses(opens new window) who worked with transformational leaders during COVID-19 had higher job satisfaction and reduced burnout. Other research(opens new window) shows that transformational leaders create an “innovation climate” and promote employee well-being.
The transformational style also improves retention. Take Savers’ “We Love Ideas” initiative(opens new window), which invites employees to share their thoughts and help shape the company’s direction. Programmes like this have encouraged the retailer’s staff to stick around, with 28% of workers staying between six and 20 years.
How to start building these skills
You don’t need to take on a management role to learn inspirational leadership. These strategies will help you level up your abilities, no matter where you’re at now.
Look for structured learning opportunities
While you can definitely study transformational leadership by yourself, a structured programme will give you a well-rounded foundation.
For example, Multiverse’s free Transformative Leadership programme teaches practical leadership skills. You’ll learn how to lead change, manage diverse teams, and use AI to support your organisation’s mission. It’s all designed to help you lead high-performing teams, either in your current role or the next one.
Seek feedback from leaders you trust
Getting constructive criticism may seem scary, but it’s an unavoidable part of professional development. Plus, honest feedback is a key part of transformational leadership, so you might as well start early.
For the best results, don’t just ask your supervisor, “Am I a good leader?” You might just get a yes or no. Instead, ask specific questions like these:
- What are two areas I should focus on to become a better leader?
- I’m working on improving my creative problem-solving skills. Any tips?
- What can I do to collaborate more effectively with team members?
- How would you rate my communication skills during that presentation on Tuesday?
Go into every feedback session with an open mind, and don’t respond defensively. If someone tells you that you struggle with critical thinking, for instance, you might join a debate club or play logic games to improve.
Strengthen your emotional intelligence
Emotional intelligence means you can recognise and manage your feelings, while also understanding and — this is key — empathising with others.
As a leader, this skill helps you create a sense of psychological safety where team members feel comfortable expressing themselves. For example, if an employee seems nervous about a big presentation, you can notice it and offer support.
People often assume that emotional intelligence is innate, like a sixth sense, but it’s just as learnable as data analysis or coding. Here are a few ways to improve it:
- Study the psychology of body language, like how stiff shoulders can be a sign of anger or anxiety.
- Practice deep breathing exercises during stressful situations, like a meeting with an upset client.
- Use a mindfulness app like Headspace or Happify to get in tune with your emotions.
Practice vision-setting
A great transformational leader knows how to set a clear vision, whether that’s reshaping the organisation’s goals or just convincing skeptical team members to try a new accounting software.
These strategies will help you become a visionary leader that people are eager to follow:
- Imagine the absolute best-case scenario for your organisation in five years, and consider how you might get there.
- Hold a vision-a-thon with your team to play with ideas and scenarios.
- Use storytelling techniques — like metaphors or even characters — to make your vision feel real.
Take the next step with Multiverse
Become a change-maker with Multiverse’s Transformative Leadership programme. Over 15 months, you’ll build your leadership skills through asynchronous modules, interactive workshops, and coaching from leadership experts. For more specialised content, join the optional Women in Leadership modules.
Plus, about 70% of the apprenticeship involves hands-on projects in your current role. That means you get to start using your new leadership skills immediately, gaining real experience as you learn and earn.
Ready to transform your career and your organisation? Fill out our quick application(opens new window) today.
