If you have cleared all 4 islands and you are still level 7 something very strange is going on. As a skald on normal I was fighting the spider at about level 20. Are you sure you have completed all the quests and killed all the wandering stacks on the islands?
Leadership rise for the skald is 20*new level so at level 7 you should have got +140 leadership - do however remember the trophies (middle left of the hero screen) as zero loss battles will give you increased leadership (up to +1000 for the level 3 medal). I would suggest aiming to get the first level of that medal before leaving the first island if at all possible.
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