Leadership capability remains the number one concern for Australian Local Government CEOs in 2025. According to the latest CEO Index, 91% of leaders are worried about gaps in their executive pipeline.

Councils face increasingly complex challenges: cyber threats, climate impacts, financial strain, and community expectations. Strong leaders are needed not only to manage these pressures but also to drive transformation and long-term resilience. 

The Current State of Leadership Gaps 

• 91% of CEOs are concerned about leadership talent shortages. 
• Engineers, statutory planners, and senior executives remain the hardest roles to fill. 
• Retention challenges are rising, with 1 in 4 CEOs saying it keeps them awake at night. 

Strategies for Building Leadership Capability 

• Grow talent from within: Develop structured succession pipelines and leadership development programs. 
• Prioritise culture: A positive workplace culture is key to retention and attraction. 
• Invest in development: Coaching, mentoring, and peer networks remain under-utilised. 

Conclusion

Closing the leadership gap will define how well Local Government can meet community needs in the decade ahead. As Ken Gouldthorp, CEO of Cairns Regional Council, said: “Good people attract good people. A positive workplace culture is essential to both attracting and retaining talent.” 

About Davidson: 

Davidson is a proudly Australian company with more than 30 years of experience in enhancing workplace performance. With specialist teams in Business Advisory, Search and Recruitment, and Technology Consulting, Davidson partners with clients to deliver sustainable, outcome-driven solutions that make a lasting impact for organisations and communities. 

Contact us today to discuss how we can support your council to enhance leadership, strengthen governance, and deliver transformation.