There is a huge need for skills in the workforce. In a recent survey, 70% of leaders in the US identified significant skills gaps in their workforce. The most in-demand skills are ones that directly link to leadership. In addition, every leader needs to have a plan for how to best upskill their teams. Any leader who doesn’t have a plan for their own and team’s development will be falling behind. According to the World Economic Forum (WEF), four out of five businesses are expecting to implement new strategies to improve learning to address workforce and skills challenges over the next five years.

The most in-demand leadership skills are cognitive

The research has shown an overwhelming demand for cognitive skills because, with the rapid pace of change, technical competency, on its own, is not enough. Employees at every level need to be flexible, quick learning and able to adapt to change. Therefore, the most in-demand skills for leaders, and employees in general, are:

The 11 Top In-Demand Leadership and Employee Qualities

1. Strategic and critical thinking
2. Problem-solving and decision-making
3. Communication (oral and written)
4. Flexibility and adaptability 
5. Emotional intelligence and interpersonal relationships
6. Leadership and management
7. Time management
8. Creativity
9. Collaboration (including remote and hybrid work)
10. Cultural competence and inclusion
11. Storytelling

The Most In-Demand Leadership Skills Explored

Strategic and Critical Thinking

Strategic and critical thinking enables leaders to assess situations, identify potential challenges, make informed decisions and develop effective plans. It’s about thinking ahead and anticipating the needs of the organization. Leaders who excel in critical thinking can evaluate complex scenarios, weigh risks, and develop strategic solutions that align with organizational goals. This skill is essential for innovation and long-term success.

Problem-solving and Decision-Making

Effective leaders need well-honed problem-solving and decision-making skills. They need to be able to properly identify the type of problem being faced in order to select the right strategy or approach for solving it. They need an understanding of the psychology of decision-making and of decision-making processes so that they can be not only be decisive but make the best choices in a given situation.

Communication

Effective communication is paramount. Leaders must be able to articulate their vision, provide clear instructions, and foster open dialogue among team members. This involves not only speaking but also active listening, ensuring that all voices are heard and valued. By creating an environment where open communication is encouraged, leaders can build trust and promote collaboration.

Emotional Intelligence and Interpersonal Skills

Emotional intelligence involves recognizing, understanding, and managing your emotions and those of others. It’s crucial for building strong relationships and creating a positive work environment. Leaders with high emotional intelligence can navigate interpersonal dynamics, resolve conflicts, and foster a culture of empathy and respect. Good interpersonal skills build on emotional intelligence, allowing people to effectively build rapport, have meaningful social engagements and, where necessary, to resolve conflict.

Leadership and Management

Leadership and management often overlap, but they are not the same. Understanding the nuances between these roles can enhance the effectiveness of both leaders and managers within an organization. Here are some key characteristics that differentiate the two:

Leadership

1. Visionary Thinking: Leaders look beyond the immediate tasks and see the bigger picture. They set long-term goals and inspire their teams to work towards a shared vision that aligns with organizational values.
2. Influence and Inspiration: Rather than commanding, leaders inspire their team. They motivate by example, harnessing the strengths of their team members and empowering them to achieve their full potential.
3. Innovation: Leaders encourage creativity and new ideas. They foster a culture of innovation, where team members feel safe to experiment and challenge the status quo, driving continuous improvement.

Management

1. Planning and Organizing: Managers focus on setting goals and creating a structured plan to achieve them. They ensure resources are allocated effectively, and processes are in place to meet objectives efficiently.
2. Directing and Controlling: Managers ensure that tasks are completed efficiently and effectively. They oversee operations, monitor performance, and implement corrective actions when necessary to maintain productivity.
3. Stability: Managers work to maintain order and consistency within the organization. They establish policies and processes that provide a framework for operations, ensuring a stable and predictable environment.

Both roles are essential, but effective leadership often requires a balance of these characteristics. A successful organization benefits from leaders who can manage effectively and managers who can lead with vision and inspiration.

Time Management

Good time management, particularly for leaders, comes down to effective prioritisation. There are always more opportunities than there is time and more work than there are employees, so every member of a team needs to know what their priorities are and then how to manage their time to achieve the most important tasks.

Storytelling

Storytelling might be a surprise for some in this list of skills. It is not what we often think about when we think of work, but this would be a mistake. Humans are storytellers, and whether at work or not, it is stories that we most connect with. So whether we are creating a sales pitch, giving a presentation or preparing for a public-speaking engagement, storytelling is at the core of ensuring we effectively engage our audiences.

The Most In-Demand Traits for Leaders and Employees

Some of the items listed in the survey are traits rather than skills, but they can also be developed through training and gaining relevant experience. As the research has shown, these traits are often the distinguishing factors that contribute to effectiveness and success.

Flexibility and Adaptability

Flexibility and adaptability are vital in a fast-changing world and workplace. Leaders and other employees need to be comfortable with change, not only in their situation but in their need to change and develop. We no longer live in a situation where the majority of people can expect to remain doing the same job or trade for their whole career. The most successful people will be the ones who can adapt the best to change.

Creativity

To find new ways to deal with change and overcome challenges we need creativity. Creativity is where innovation starts, and the organisation that can keep innovating is the team that will stay ahead of the competition. Creativity is a trait but there are skills and techniques that can be learned to develop creativity, such as lateral thought and brainstorming techniques along with facilitation of workshops for team innovation.

Collaboration

Leaders must work well with others, encouraging participation and valuing diverse perspectives. They facilitate teamwork by creating an inclusive environment where all contributions are recognised and leveraged. Effective collaboration leads to innovative solutions and a shared sense of purpose among team members.

Cultural competence and Inclusivity

Cultural competence is not just about understanding different national cultures, it is about a deep understanding of all manifestations of culture, including workplace culture. Understanding organisational culture is vital for encouraging the right team behaviours and linking them to core values.

As seen above, inclusivity is linked to collaboration. It means that we are encouraging the right people into the organisation to maximise effectiveness. Every team needs a variety of personalities and competencies to fill the vital range of team roles. Diversity of thought is critical for innovation and creativity.

Leadership Skill Development Next Steps

Leadership is a dynamic skill set that requires continuous development and application. Whether you are an aspiring leader or an established manager, developing these essential, in-demand leadership skills will enhance your effectiveness and contribute to the success of your organisation.

To maximise your development as a leader, you need to understand where you are on your journey and which skills you most need to work on. To help you further, click on the link below for resources to support your self-improvement and for those in your teams:

Leadership Development: Master the Top Leadership and Life Skills

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