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The latest ONS figures are out, and they’re a wake-up call for every MD and CEO in the UK.

Unemployment has climbed to its highest level in nearly five years. 

You might think this means that the challenges of recruitment are over. 

They are not. 

In 2026, we aren't seeing a lack of available talent; we are seeing a lack of emotional connection. When the market gets tough, employees don't necessarily "work harder"—they sometimes hide, they "job-hug," or they burn out.

If your people are staying just because they’re afraid of not getting another job, you don't have loyalty. You have compliance. And compliance doesn't innovate; indeed, it can do the opposite and enervate.

People stuck in a job they don't enjoy, who are going through the motions, sap their colleagues' energy.

There is a huge difference between people who innovate and people who enervate - it's your role to spot the difference and reward innovation and tackle enervation.

These were some of the topics our MD & CEO members discussed at one of our recent Pabasso - Peer Advisory Board Associates meetings.

We also discussed how we are all using and trialling AI and how it can help our organisations - whilst recognising the danger of losing the human touch.

I’m pleased to say that all the group are engaging with AI - ignore it at your peril!

In this digital world, it is very easy to use tech for everything, which can be very impersonal. 

We had Lee Jackson join us in one of our recent meetings, which was hosted by Sophie Isaacs at LDC in Leeds, thanks again Sophie.

Lee is a motivational speaker, in his latest book ‘Get Good at Life’ he extols the virtues of the handwritten note.

I recently read about an MD who makes it a point to send one handwritten note a week to a team member. No technology. Just handwritten ink on a card.

Why does this work in 2026?

• It’s proof of time: In a world of instant AI, it’s proof that you personally have taken time out of your day to write a personal message
• It cuts through the noise: Everyone’s electronic messaging inboxes are overloaded. Their physical letterboxes are empty.
• It builds "Retention Equity": Research shows that employees who feel personally 'seen' are 17x more likely to see a long-term career at their company, even when times get tough.

Sometimes, the best retention technique is engagement, which will involve a little of your time, a card and a 1st class stamp! Try it.

Pabasso - Peer Advisory Board Associates help leaders of established businesses to progress through the shared expertise and experience in our boards, which are facilitated by another experienced business leader. It's all about the Potency of Peer Support.

If you would like to find out more about the benefits MDs & CEOs of established businesses in Yorkshire get from Pabasso membership, drop me a note at rad@pabasso.com and we can arrange a confidential chat.

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