Pause For Thought
Another day and another set of challenges to react to. Does this sound familiar ? Whilst this is true, the approach we take to these challenges will greatly influence or even dictate the outcome we see. The pace of change does seem to be quickening and there are more issues to overcome to open our doors each day and do business. Even the most hardened and experienced business leaders are struggling. There are a few reasons for this…
Knee jerk cost saving decisions : With spiralling business operational costs, the margins once enjoyed are eroding. Decisions to retain those margins are critical to the longevity of operational success. All too often snap decisions to reduce costs result in increased costs a little later down the line. On our Leadership Academy, one of the questions we challenge business leaders with is
“Cut your costs, without reducing your ability to compete”.
Cutting headcount either by active redundancy or (as we are witnessing now) not replacing people who move on may reduce your immediate outgoings through salary savings and costs associated with hiring and employing people. But the increased workload piled onto existing employees leads to mistakes, fatigue, burn out and eventually resignation of once willing and dedicated people proud to work for you. Over-automation of service provision often leads to customer dis-satisfaction, complaints and customers voting with their feet to your competitors, thus costing more in the long run. Cutting the training budget is another quick win for many organisations. Pay this through for a minute. You expect your people to deliver to the highest standards operationally, professionally and managerially and yet there’s no budget for assisting them to gain the skills they need to deliver these standards. This is like expecting someone to put up a shelf but only give them the shelf and some screws. They lack all the resources needed to fulfil the task with accuracy, functionality, and safety.
Lack of Resilience : There is a distinct lack of resilience in the modern workforce. Yes, this is mainly down to the generations that populate the majority of the global workforce (aged 18-40) as they have been brought up in different times. In these times they didn’t have to wait until next Sunday to watch their favourite TV drama or pick out the gherkins from their hamburger. They are the ‘On Demand’ generation where they can have what they want when they want it. Convenient as this is we have a generation of employees who are ill equipped to deal with adversity in a time and cost-effective way. I spoke at a conference a couple of years ago stating these and other facts about the modern workforce and pleading with the audience to allocate some of their budget to upskilling their people on the basics many of us grew up with. The consequences are far more costly than paying to develop these skills now.
Change fatigue : Yes, this really is a thing. Humans are adaptable by nature but every one of us has our own tolerance threshold. It’s not a competition but increasing threshold is trainable in individuals and for organisations. Our new programme ‘Bounce Forwards’ (soon to be released), addresses all these opportunities in a blended learning format. We all need recovery from the day to day, especially when the challenges seem to be greater by the month. Recovery is part of the success formula and one that should not be overlooked if sustained success is what is required and expected.
Insights
Burnout among organisational leaders is reaching critical levels, driven by emotional labour, decision fatigue, and misaligned work dynamics rather than just overwork. According to the Global Leadership Forecast 2025, 71% of leaders report higher stress since taking on their current roles, with face-time fatigue, hybrid/remote paradoxes, and mismatched work arrangements fuelling the issue. These stressors are not only personal challenges, they carry major organisational risks. Burned-out leaders are less effective, more likely to quit, and significantly less engaged; leading to cultural instability and financial losses that can reach tens of thousands of pounds per employee annually.
Amid rising burnout, the most overlooked yet powerful habit for leaders is delegation. While many turn to quick fixes like time-blocking or wellness perks, delegation has emerged as the top skill for reducing burnout, but only 19% of leaders demonstrate strong abilities in this area. Effective delegation demands trust, clarity, and matching the right people to the right tasks, often through understanding team dynamics and strengths. Organisations that prioritise developing this skill and supporting leaders holistically can not only mitigate burnout but also turn it into a strategic advantage, boosting both retention and performance in the long run.
To read the article in full visit: https://www.forbes.com/sites/julianhayesii/2025/04/20/leadership-burnout-is-surging-one-overlooked-habit-can-help/
News
Bank of England Governor Andrew Bailey has warned of a slowdown in the UK labour market, citing reduced hiring and weaker wage growth as businesses adjust to higher national insurance contributions. Speaking at a business conference, Bailey noted increasing evidence of slack in the job market, including a sharp drop in employment and a decline in private sector wage growth. With wage settlements expected to fall to levels more consistent with the Bank’s inflation target, the Monetary Policy Committee is likely to weigh these developments heavily when considering interest rate changes at its next meeting in August.
Despite a surprise growth of 0.7% in early 2025, the UK economy contracted in April, and further rate cuts are anticipated by financial markets. Bailey indicated that underlying economic growth remains weak and is likely to stay subdued amid global uncertainties like U.S. tariffs. While inflation has edged down slightly, persistent price increases in key food items, driven by supply disruptions and labour costs, remain a concern. Bailey emphasised the need to prevent these increases from sparking broader inflationary effects, underscoring the Bank’s cautious approach to monetary policy in the face of ongoing economic fragility.
To read the article in full visit:
https://www.theguardian.com/business/2025/jun/26/growing-signs-slowdown-uk-jobs-market-bank-of-england-governor3xndvv4o