Why ‘leadership at all levels’ is key to navigating a changing skills landscape
In boardrooms and on shop floors across every sector, one challenge in particular continues to present itself, the need for stronger leadership and management capability. Not just at the top, but at every level of the organization, including entry level.
30 June 2026
It’s an immediate, operational concern, requiring urgent attention. Employers are asking more of their people than ever before; to lead teams through change, support wellbeing, develop others, all while integrating the next generation into their workforce with confidence and clarity of purpose.
The real leadership challenge facing employers
Leadership is often discussed in the context of senior executives. But in practice, its impact is felt elsewhere, among those who shape the day-to-day experience of work. The actions of frontline supervisors, first-line managers and operational leaders will impact the team leader tasked with onboarding an apprentice, the supervisor managing performance and morale, the middle manager aiming to translate strategy into action.
All these roles affect an organisation’s ability to retain talent, build capability and embed new entrants into the workforce. And managers must now wear many hats; where once they were merely task owners, now they must be mentors, coaches and culture carriers.
A shifting skills marketplace
Meanwhile, young people stepping into employment must now navigate dynamic and uncertain environments, meaning that the quality of immediate, human leadership is more critical than ever. Employer expectations have changed, notably in a shift in emphasis - away from purely technical capability and towards ‘employability’ skills.
Attributes like confidence, communication, and the ability to work with others have become baseline requirements. They underpin high-performing teams and help organisations navigate constant change. They’re no longer optional extras.
And yet, at the very moment their importance is being acknowledged, some of the funding for apprenticeships that have traditionally helped nurture these skills - and support entry into work - is being removed.
Sixteen apprenticeship standards are due to lose funding this year, including widely-used leadership and management routes that have long provided a structured pathway for developing these behaviours. For many employers, this could mean that funding sources for this valuable training become increasingly scarce.
Why this matters for employers
This is why the conversation about mentoring, management and leadership skills matters - not just for those at risk of falling out of education or employment, but for any young person trying to gain a foothold in an increasingly competitive labour market.
Leadership is no longer confined to formal management roles. It’s a suite of capabilities that underpin progress in every sector. Communication, problem solving, decision-making and teamwork enable individuals to contribute effectively, build confidence, and grow into positions of responsibility.
And the presence (or absence) of these attributes is become increasingly apparent to employers.
Early-career employees often require consistent supervision, coaching and support. Yet the programmes that have traditionally helped managers develop these capabilities are under mounting pressure. Increasingly, the result is that organisations’ expectations of managers are frustrated by a lack of available support to help them deliver.
The risk of removing foundations
As leadership development evolves, there is a risk that something essential is lost: structured, supported progression.
For individuals stepping into management for the first time, leadership capability does not emerge fully formed. It is built through guided learning and reflective application, and depends upon consistent frameworks, along with the time required to develop confidence.
Without this foundational ramp, organisations may find themselves with managers who are technically capable, but underequipped for the realities of leading people - particularly those entering the workplace for the first time.
Supporting a stronger leadership pipeline
This is where a more structured approach to leadership development continues to have an important role to play.
Approaches that offer clear progression, practical application and space for reflection can help individuals build the confidence to step into leadership roles and develop within them. This is particularly important for those taking on responsibility for others for the first time.
At these early stages, development is not just about acquiring knowledge. It’s about building the judgement, interpersonal skills and self-awareness needed to lead people effectively in real workplace situations.
Supporting this kind of development helps ensure that managers are better prepared for the realities of their role - especially when they are responsible for guiding and developing others.
Investing where it matters most
Organisations looking for the greatest return on their investment in leadership should turn their attention to the managers responsible for onboarding and developing early-career talent.
Why? Because it’s these managers who determine whether individuals feel capable, included and able to progress. Their impact extends beyond performance, influencing retention, culture and long-term organisational capability.
Strengthening leadership at this level is not simply a development priority – it’s a business necessity.
Building systems, not shortcuts
Leadership development is not a one-off intervention. It is an ongoing system requiring oversight and maintenance. The focus should not be on replacing one route with another, or prioritising short-term fixes.
Instead, employers should focus on sustaining a system that recognises leadership at every level, supporting progression from first steps through to senior responsibility. And, crucially, equipping managers to develop others as well as themselves.
Ultimately, the message for employers is simple - extra chairs in the boardroom are no longer a leadership fix. Instead, they need better-supported managers at every level, who can help the next generation to succeed.
To find out more about how the leadership landscape is changing, join the ILM webinar, Redefining Leadership in a Changing World, on 7 July.