Part of our ‘Inside Perspectives Series’, Cassandra Blay, Head of HR at the IoL, explores why employment law changes should prompt organisations to rethink how they develop their leaders.
When organisations find themselves facing a difficult employee relations case or the threat of an employment tribunal, on the surface it's easy to assume something significant must have gone terribly wrong.
The root cause of the issue is often far, far less dramatic. It’s often a manager who wasn't confident enough to address performance concerns or a recruitment decision made under pressure. As HR leaders we recognise that there are many occasions when the trigger point can be traced back to expectations that were never clearly established and difficult conversations that were put off until it became a formal issue.
It is very rarely one catastrophic mistake, and more often than not, it's a series of well-intentioned leadership decisions made by people who often were never fully equipped for the responsibilities they'd inherited.
Much of the conversation around the forthcoming changes to employment law has, quite rightly, focused on understanding the legislation, updating policies and ensuring organisations remain compliant. HR teams across the country are working incredibly hard behind the scenes to make sure the right foundations are in place.
However, I'm far from convinced that the biggest employment law risk facing most organisations is a lack of knowledge of the legislation or HR expertise.
I believe it's the everyday leadership decisions being made by managers, many of who were promoted because they were exceptional in their previous role yet never had the opportunity to properly develop the skills needed to lead others.
What I do not want this to seem like is a criticism of managers, because the point I want to make is quite the opposite.
Most people don't step into leadership because they've spent years learning how to recruit robustly and fairly, manage performance, navigate employment law or have difficult conversations. They become leaders because they've demonstrated expertise, commitment and potential in their profession. We promote outstanding engineers, marketers, accountants, salespeople, technicians and specialists because they're excellent at what they do.
Then, almost overnight, their role changes significantly.
Their success is no longer measured purely by their personal, technical performance. Suddenly they're expected to recruit wisely, motivate individuals with different needs, coach performance, manage conflict, balance compassion with accountability, understand legal responsibilities, protect organisational interests and make decisions that can have lasting consequences for both individuals and the organisation.
It’s an enormous shift for the vast majority of those entering a leadership role, but it's one that many organisations still underestimate because we often assume that capable people will naturally become capable leaders. Whereas, like any profession, leadership is a discipline in its own right. It requires knowledge, judgement, practice and continual development, and the skills that make someone successful in their technical role are not always the same skills that enable them to lead people confidently and effectively.
This is the thing that keeps us HR leaders awake at night.
We’re honestly not worried about whether the employee handbook will be updated or whether the latest legislation has been interpreted correctly, because we know how to do that. What concerns us is whether every manager across the organisation has the confidence to recruit robustly and fairly, whether they are setting clear expectations, if they’re manage performance consistently, recognising when support is needed, documenting decisions appropriately, and having those conversations that nobody particularly enjoys but every good leader eventually has to have.
We need to be open about the fact that the expectations placed on leaders continues to grow. Yes, employment law is evolving, and employees rightly expect fairness, transparency, and consistency. Organisations are balancing commercial pressures with creating inclusive, supportive workplaces where people can perform at their best. These are all very positive developments, but they also mean leadership has become considerably more complex than it was even a decade ago and the skills and knowledge that our leaders need to navigate this landscape are also complex.
As HR professionals, we can create frameworks, provide expert advice, and coach managers through difficult situations. We can also ensure policies are compliant and processes are fit for purpose. However, what we can't do is sit in every interview, attend every one-to-one or step into every difficult conversation before it happens.
The reality is that leadership happens in hundreds of everyday moments across an organisation, often long before HR becomes involved. It's also important to remember that leadership isn't confined to the executive team, because every line manager, supervisor, project lead, and department head shapes the experience of work through the decisions they make and the conversations that they have. In many organisations, those everyday interactions have a greater influence on culture than any policy document ever will.
This is why I think we need to move our conversations about the changes to legislation beyond simply thinking about compliance.
I obviously completely agree that organisations need to understand the legislative changes, and of course they must have robust policies and clear processes. But beyond the webinars with employment lawyers and the factsheets giving us timelines for the changes, we should also be asking whether we're investing enough in helping our leaders become better leaders.
Understanding the law is only one part of the equation and leadership within our organisations is what transforms knowledge into good judgement. Leadership is what enables someone to recruit thoughtfully rather than reactively, set expectations clearly from day one, give timely feedback, address concerns before they escalate, make balanced decisions and have conversations that are compassionate and constructive, even when it is uncomfortable.
When organisations invest in leadership capability, the benefits extend far beyond compliance. Our employees experience greater consistency, clarity and trust because our managers become more confident in making balanced decisions. This means that our HR teams spend less time firefighting and more time adding strategic value. Perhaps most importantly, organisations reduce the likelihood of avoidable employee relations issues before they ever become formal cases.
One of the most effective ways to achieve this is by recognising that leadership development isn't something that happens once someone reaches the executive team. It should be available throughout an organisation, equipping leaders at every level with practical knowledge, trusted guidance and opportunities to continue developing as the workplace, and the landscape that we are working in, evolves.
That's why I'm seeing more organisations looking beyond one-off management training and investing in longer-term leadership development through initiatives such as corporate membership with the Institute of Leadership. Providing leaders with ongoing access to expert insight, practical resources and a community of peers helps build confidence, strengthen judgement and develop the kind of leadership capability that benefits both people and organisations.
Employment law will continue to evolve, as it absolutely should, but legislation alone won't determine how organisations respond. That comes down to the quality of leadership. The organisations that navigate legislative change, or any other change for that matter, won't be those with the most up-to-date policies - they'll be the ones that recognise leadership development isn't a compliance exercise or a nice to have, they won’t be those with the most up‑to‑date policies, but those that recognise leadership development isn’t a nice to have but that it’s the smartest investment they can make in protecting their people, strengthening their culture and building resilient organisations for the future.
