Pause For Thought
Whilst unemployment has risen, this should not be as alarming as it sounds. Think back to 2022 to 2023 where there were reportedly more job vacancies than there were people on the planet eligible to work. Companies were crying out for anyone to fill a vacancy regardless of their suitability. Often interviews were lined up with no shows as candidates seemed to hold all the cards. There were examples of extensive negotiations by candidates on salary and benefit packages as they knew the demand was greater than the supply.
This is one aspect of the human capital cycle that shifts regularly in any given number of years. For example, in between periods of national lockdown during the global pandemic, we experienced a primarily client driven market where there were excessive amounts of applications for single job vacancies across the majority of sectors. People had lost their jobs during the pandemic when companies were looking at cost cutting methods for survival. Then came the great resignation of 2021 where, as a nation we lost a large proportion of our established workforce (typically the 50+ age bracket) in favour of early retirement. The UK also saw fewer young people entering the labour market due to the volatility of employment and uncertainty of job security. Instead, they chose to stay in education and remain living in their family home.
Fast forward to the current situation and there is increased competition for vacancies, and we are entering a more balanced position between the two previously mentioned scenarios. Sadly, this won’t last long as we regularly pivot from one extreme to the other. If only companies and candidates were more appreciative of the other and held themselves with greater respect demonstrating loyalty and commitment to both parties, instead of driving a transactional approach to employment.
If we are to create and progress our organisations as environments where people can genuinely contribute to the identified success measures and they can fulfil their potential whilst (largely) enjoying the time they donate to their employer, then we can elevate the transactional environment to more of a transformational culture. Leadership requires more of a chameleon approach than in previous generations. Followership is a vital ingredient to enable leaders to navigate the roads ahead. Our Leadership Academy has always centred around the behaviours and attributes of a modern-day leader as opposed to the traditional, theoretical, and entitled views that are no longer fit for purpose. This is why we have a whole day focused only on ‘Followership’ before we even look at ‘Leadership Approaches’. Don’t be disillusioned thinking that modern Leadership is all about being nice, friendly, and liked. It involves tough love sometimes, but with firm foundations of clarity, understanding, respect, transparency, appreciation and humility, the culture can be aligned to the purpose in any organisation.
Insights
The evolution of leadership: Past insights, present trends, and future directions
From the Journal of Business Research, this article is a comprehensive review of leadership research over the past five decades. It highlights which approaches have continued to attract the attention of researchers over time. The authors delve into moral leadership models, namely authentic, ethical, and servant leadership, while also addressing some of the key criticisms surrounding these frameworks, particularly how leadership styles are operationalised and measured.
The article looks at current trends in leadership research, such as the “dark side” of leadership styles that are typically viewed as positive, and a growing interest in followership as a critical part of the leadership dynamic. It critiques the continued reliance on leader-centric paradigms and suggests ways the field might evolve. In the concluding section, the authors make a compelling case for integrating discussions of power and authority more explicitly into leadership theories and call for methodological and conceptual improvements to address longstanding critiques in the field.
To read the detailed article in full visit: https://www.sciencedirect.com/science/article/pii/S014829632400540X
News
The UK job market continued to weaken in early 2025, with declines in payroll employment and job vacancies, according to new data from the Office for National Statistics (ONS). The number of workers on company payrolls fell by 47,000 in March and an estimated 33,000 in April, while job vacancies dropped by 42,000 in the February to April period. Analysts suggest that recent increases in employer National Insurance contributions and the National Living Wage may be prompting firms to reduce hiring. Unemployment also ticked up slightly to 4.5%, though the ONS cautioned about the reliability of this figure due to low survey response rates.
Despite the slowdown, regular pay (excluding bonuses) rose at an annual rate of 5.6%, continuing to outpace inflation, which may delay further interest rate cuts by the Bank of England. Economists warned that “sticky” wage growth could fuel inflationary pressures, prompting the Bank to proceed cautiously. A separate employer survey showed hiring expectations are at a record low outside of the pandemic period, further underscoring the labour market’s fragility. While the job market hasn’t collapsed, experts suggest businesses are adjusting cautiously to increased costs and economic uncertainty.
To read the full article visit: https://www.bbc.co.uk/news/articles/c5yq3xndvv4o