When it comes to the ongoing conversation around the skills shortage, there’s a tough question we need to ask ourselves: is it really a skills shortage, or is there something deeper at play? The hard truth is that leadership and culture are often the culprits, not a lack of skilled workers. Tackling this issue requires holding up a mirror to your leadership style and being honest about what you see.
Leadership Sets the Tone
It’s not just HR fluff—your leadership team’s behaviour is a living, breathing example of your workplace culture. Every time a leader ignores behaviours that contradict your organisation’s values, they’re sending a loud and clear message to employees: the values are just words on a wall.
Culture isn’t solely about living the organisational values, but it starts there. Leadership is about more than just hitting KPIs—it’s about being a decent human being. It’s treating people with respect, fostering inclusion, and doing the right thing even when it’s inconvenient. And let’s be clear: your workplace culture is the sum of your leadership team.
- It’s the way leaders communicate and treat others.
- It’s the behaviours they walk past and the ones they reward.
- It’s whether leaders prioritise humanity or sacrifice it for business outcomes.
- It’s how they handle conflicts, whistleblowers, and those “brilliant jerks” that everyone dreads.
In short, your culture reflects what your leaders are willing to tolerate.
The Connection Between Leadership and Retention
Here’s a stat that might make you squirm: up to 70% of turnover is directly tied to the manager. Let that sink in. The person leading a team has more impact on retention and engagement than the shiny perks you offer.
Employee engagement isn’t just about keeping people happy—it’s about creating an environment where they want to bring their best selves to work every day. Engaged employees are:
- 83% less likely to take a sick day.
- 43% less likely to quit.
- 18% more productive.
- Delivering 10% higher customer satisfaction metrics.
If your managers aren’t equipped to foster engagement, you’re fighting an uphill battle in attracting and keeping talent.
Blame the Skills Shortage or Rethink Leadership?
Yes, there are industries experiencing real skills shortages, but blaming external factors without addressing internal issues is a mistake. The reality is this: the skills shortage amplifies the cracks in your culture. If your workplace doesn’t provide a positive employee experience, you’ll struggle to attract and retain top talent, regardless of the labour market.
Imagine a workplace where employees feel valued, understood, and motivated. They stay longer, are more productive, and actually look forward to Monday mornings. Now, imagine the financial benefits—lower recruitment costs, reduced absenteeism, and a stellar reputation as an employer.
A Human-Centred Approach to Leadership
Here’s the kicker: creating this type of workplace doesn’t require a complete overhaul. It starts with leadership. A human-centred approach—one that values people as much as profits—can lead to a 17% increase in profit.
It’s about:
- Developing leadership skills, not just promoting technical experts.
- Providing leaders with the tools to foster collaboration and engagement.
- Encouraging managers to take responsibility for creating an environment where employees can thrive.
The People & Culture Office are here to help you make the shift. From leadership development to employee engagement strategies, we provide future-focused, people-centred HR solutions that make an impact.
So, the next time you’re tempted to blame the skills shortage, pause and hold the mirror up. What does your leadership style say about your organisation? If it’s time to create a workplace where employees want to stay, thrive, and grow, let’s start the conversation.
Because a skills shortage is tough to tackle—but poor leadership? That’s something we can fix.
