By Lisa Taylor

At Challenge Factory, we work with leaders across industries—and in 2025, one troubling trend is becoming impossible to ignore: seasoned leaders are leaving earlier than anyone expected.

Not because of burnout headlines. Not because of public scandals or bold career pivots. But in a quieter, more personal way.

From corner offices to senior ranks of public service, many executives are reaching a deeply personal and strategic decision: they’ve given enough. And no amount of vacation time, leadership coaching, or wellness stipends will bring them back.

This silent exodus carries a real and urgent risk. And most organizations aren’t prepared.

The warning signs are right in front of us

Take former New Zealand Prime Minister Jacinda Ardern. In early 2023, she announced she would step down, saying she “no longer had enough in the tank” to continue. It was a rare public admission of the emotional and psychological toll of leadership, especially after years of overlapping, prolonged crises.

Closer to home, seasoned Canadian Deputy Ministers have been quietly exiting the public service. Across departments like Global Affairs, ESDC, Health Canada, and more, long-serving senior leaders are opting for early retirement or declining reappointments. Few speak publicly, but inside government, it’s clear: leading in today’s post-pandemic landscape has become harder, more politicized, and often thankless.

In the corporate world, the signs are just as visible. A 2023 report from Challenger, Gray & Christmas found that more U.S. CEOs left their roles than in any year since 2002. Their official statements often cite “strategic transitions” or “personal decisions.” But behind the polished language lies a familiar reality: economic uncertainty, stakeholder fatigue, and rapidly shifting expectations for what leadership should look like.

Why self-care isn’t enough anymore

Much advice for managing executive fatigue focuses on personal resilience: take a sabbatical, set clearer boundaries, work with a coach, invest in self-care. But resilience alone isn’t enough anymore.

Many senior leaders aren’t just tired. They’re depleted.

They’ve led through a pandemic, climate shocks, economic upheaval, political instability, and now face rising polarization and economic trade pressure from all sides. The sense of “just push through a little longer” has worn thin. For some, staying no longer feels meaningful. For others, the emotional return on effort has collapsed.

What’s more, the current leadership environment often isolates those at the top just when they need the most connection. Public trust in institutions is low. Boards are demanding transformation and austerity in the same breath. Teams expect transparency, empathy, strategy, and speed all at once.

Even those leaders who prioritize strong team relationships feel they need to hide their own humanity. When leading starts to feel like surviving, it’s not just burnout. It’s a signal.

The organizational risk no one is naming

While many workforce strategies focus on attracting younger workers or building internal mobility, few are addressing the high cost of quietly losing seasoned leaders:

• Institutional memory walks out the door.
• Succession pipelines accelerate before they’re ready.
• Strategic initiatives stall or shift without explanation.
• Cultural anchors disappear overnight.

In the public sector, these exits also erode citizen trust and continuity in government when stability is needed most.

Many organizations assume larger compensation packages will keep senior leaders engaged. Instead, these “golden handcuffs” often trap leaders financially but not emotionally. Staying becomes a waiting game as they count down to a milestone date, retirement age, or service threshold. By the time leaders physically exit, they’ve long since disengaged, both psychologically and strategically.

Boards and executive teams need to begin asking tougher questions—before it’s too late:

• What narrative are we offering senior leaders that makes staying worthwhile?
• Are we actively listening for depletion, not just performance?
• Do we have succession not just for roles, but for wisdom?

It’s time to rethink leadership retention

There’s growing research that links “mattering” to engagement and retention. In cultures where people know they matter, they feel personally and collectively fulfilled.

Yet too often, leadership cultures assume executives create meaning for others but don’t need it themselves. Leaders are employees too. They face world events and family crises alongside everyone else.

In junior staff, meaningful career conversations help surface changing needs and realign purpose. But senior leaders often go it alone until it no longer feels worth it to continue. They push right up until they hit a wall and then step away.

It doesn’t have to be this way.

Career development doesn’t stop once someone reaches the executive level. Senior leaders also experience career inflection points, questioning their future direction, purpose, and impact. They need intentional career support that recognizes evolving priorities, legacy-building aspirations, and personal growth beyond the organization’s success.

The organizations that will thrive in this next era won’t cling to outdated models or push leaders to push harder. They’ll create leadership environments worth staying—and growing—in.

They’ll understand that just like every other employee, senior leaders need meaning, momentum, and human connection to stay engaged. They’ll build cultures where reflection is expected, not hidden.

At Challenge Factory, we’re seeing it firsthand: the quiet exit of seasoned leaders is accelerating across industries.

The warning signs are clear. The opportunity is even clearer. This isn’t about convincing leaders to stay—it’s about making leadership worth staying for. The next era of work belongs to organizations that choose to act now. Will you be one of them?