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July 16, 2024
Making sound business decisions is only a part of being a leader. Uncover the truth behind what it takes to be a good leader.
According to Gallup, leadership is “the act of getting individuals aligned and moving in the same direction toward a desired outcome.” This then begs the question—how exactly do good leaders do this, and is it just about how good of a decision-maker you are?
It takes much more than good decision-making for leaders to impact the success of their business and its outcomes significantly. Leaders who focus on the result and neglect everything that goes into achieving that, i.e., employees and their experience, will likely see their business struggle. Good leadership involves building a people-focused culture that hinges on trust and mutual respect. Ultimately, it drives employee productivity and overall company performance.
Yes, leadership is about ensuring excellent business outcomes and profitability for your company. However, the only effective way to do this is by creating an organizational culture that prioritizes and supports your employees and empowers them to do great work. In their 2024 Global Culture Report, the OC Turner Institute discusses the six essential elements that define a thriving workplace culture, which they call Talent Magnets. These Talent Magnets are key aspects of a culture that attracts and retains top talent. Of these six, they say leadership is the most influential and is vital in cultivating the other talent magnets — purpose, appreciation, well-being, success, and opportunity.
Good leaders who embody transparency, integrity, and empathy and act as mentors and advocates for their people see better business outcomes. They create a happy work environment that improves employee satisfaction and retention, boosts performance, and makes their organization more resilient and adaptable in times of change.
Leaders play a vital role in building a high-trust culture through their actions and values, which are essential for overall business success. A Gallup study even says Gen X-ers and Millennials, who make up nearly half of the full-time workforce in the US, want leaders who care about employee well-being and are open, transparent, and ethical.
Now that you know what employees expect from their leaders, let’s examine this practically. Our experts in HR consulting for VC organizations and small businesses share some of their insights.
As a leader, your main priority should be your employees since they drive your business’ success. Experts offering leadership development for PE professionals and business leaders suggest a people-focused approach where you act as a mentor, guide, and support system for your employees. Here are some specific strategies you can adopt in your role as a leader: regular one-on-one meetings to understand their needs and challenges, providing opportunities for professional growth and development, and fostering a culture of open communication and feedback.
Naturally, employees look to their leaders for direction and guidance in their work lives. Your responsibilities as an effective leader include modeling the values and behaviors you want your employees to adopt and setting clear goals and expectations for them to work towards.
To build a culture rich in trust and respect, you must lead by example and set the tone through your values and actions. Traits such as integrity, authenticity, and follow-through are regularly referenced across the board, whether in leadership development for venture capital firms, technology, or consumer goods. These traits help build trust and reliability in leadership, giving way to greater transparency, effective communication, and increased job satisfaction. Signing your employees that you value integrity, honesty, and ethics helps shape a more positive work culture.
A Salesforce survey states that 87% of employees are motivated to do their best work when they have clear goals and expectations. According to Simon Sinek, giving your employees purpose is one of the best ways to retain top talent. Give them a sense of purpose by acting as their guide and ensuring that they are clear about their goals and the company’s direction. This helps them connect more strongly to their work, boosting motivation, productivity, and job satisfaction.
Turbulent times or situations where employees are forced to navigate changes offer excellent opportunities for you to shine as a leader. According to the OC Turner Institute, when leaders equip themselves with the tools to guide their employees through change, those employees are ten times more likely to feel a strong sense of trust in their employers. This reassurance and security are crucial for maintaining a productive and engaged workforce during times of uncertainty.
Communication and transparency are your strongest allies during times of change. For example, during a major restructuring, the more leaders share what they know with their employees, the more the employees trust their organization and leadership, and the more likely they are to stay with the organization.
Programs that offer leadership development for PE professionals and business leaders suggest communicating openly with your employees, especially when there is tension and turmoil within the organization. Suppose you need additional support to help navigate times of change. In that case, specialists in HR consulting for consumer goods, SaaS companies, and non-profit organizations can offer expert advice and communication strategies focused on change management.
Empathy and consideration are other ways to build a culture of trust and respect and improve the employee experience. Employees want to feel heard and valued by their leaders. Hence, creating an environment of psychological safety and compassion is the way forward for leadership. This understanding and empathy towards employees’ needs and challenges are essential for fostering a culture of support and connection.
A new term called empathetic leadership is now at the forefront of leadership development for venture capital firms and other industries. This leadership style encourages understanding employees’ needs, challenges, and potential to foster a culture of support and connection. It prioritizes empathy in action, where it’s not enough to say you care about and understand your employees; you have to show it through meaningful action. According to specialists in HR consulting for VC organizations, technology companies, and small businesses, this translates as offering greater job flexibility, additional resources, or development opportunities.
Showing value and appreciation for employees and their work also helps build a stronger sense of belonging and connection to the workplace. This improves job satisfaction and employee experience and boosts retention and productivity. Leaders can include employees in processes or transitions that might impact them by encouraging them to share their opinions and ideas openly.
Regarding good leadership, a people-focused approach that builds trust and respect and enhances the employee experience will likely yield better business outcomes. Although decision-making is a large part of what it means to be a leader, the role also stipulates that you act as a mentor, guide, and support system for your employees. If you require advice on improving leadership development or the employee experience at your organization, consider contacting experts in HR consulting for consumer goods, SaaS companies, and non-profit organizations.
Devika Hastak is a dynamic content writer who is passionate about using the power of the written word to promote knowledge sharing and drive business success. She is adept at crafting compelling content tailored to client objectives and successfully executing SEO strategies that significantly impact brand awareness and lead generation. When she’s not wielding her digital pen, you can find her conducting culinary experiments in the kitchen or enjoying a good laugh with her family and friends.
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