Effective leaders are, understandably, viewed as key to organisational success. According to a recent CIPD report, which explores the role of HR in selecting and developing senior leaders through interviews with senior HR practitioners, good leaders are felt to improve employee engagement, productivity and retention.
Meanwhile, senior leaders who ‘set the tone’ can help build an environment of psychological safety, in which staff feel comfortable speaking up without fear of judgement or rejection.
Research also suggests that different leadership styles can lead to varying outcomes. For example, a leader who serves others, putting employees and organisation’s needs above their own, can enhance employee job satisfaction and a willingness to go above and beyond for the organisation. Transformational leaders who inspire others to work towards a shared goal are likely to see greater innovation among staff, while reflective leaders who create open communication channels to gather feedback from colleagues help create a stronger sense of workplace belonging.
The CIPD’s Good Work Index, our annual benchmark of job quality in the UK, shows that when employees feel that leaders have a clear vision for the organisation, have confidence in leaders’ ability and trust them to act with integrity, they are more likely to report better performance both within and beyond their job role, are more likely to recommend their employer, and are less likely to quit.
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What makes a ‘good’ leader?
What constitutes ‘good’ leadership is a question that’s generated much debate. Technical expertise is, of course, important for good leaders, but shouldn’t be the sole factor behind promoting someone into a senior position. While our report acknowledges that effective leadership is context dependent, strong relationships at different organisational levels are needed for leaders to bring people together towards a common goal. Open communication, trust and emotional intelligence are vital to building these relationships, while taking an inclusive and participative approach is also a key factor for good leadership across the board.
Open communication
To build honest relationships and boost confidence among staff, leaders should ensure they’re transparent and open with their communication, where possible. This openness and authenticity is particularly important when discussing organisational goals and decision making. Staff need to feel they are not only made aware of, but are actively involved in, decisions and changes at work. This kind of employee voice is essential for staff to not only feel empowered and feel a level of commitment towards their organisation, but to go the extra mile and work harder than needed for the benefit of the business.
Building trust
Trust is an important part of leading effective teams and encouraging collaboration. Previous CIPD research has explored how leaders are seen as trustworthy – by being human through owning their strengths and weaknesses, relational through consciously building and maintaining relationships, and personal, through supporting the development of their colleagues.
Related to creating an organisational climate of trust, is psychological safety. Leaders have the authority to provide autonomy, share power and encourage participation in decision-making. Through creating this sort of environment, leaders can positively influence job satisfaction, commitment and engagement among staff, who are also more likely to effectively support and share information with each other.
It’s clear that trust works both ways – staff gravitate towards trustworthy leaders but simultaneously want to feel that leaders trust them to take risks and speak up.
Emotional intelligence
Showing emotional intelligence is also key to creating a trusting and open working environment. In our recent report, the interviewed practitioners highlighted emotional intelligence alongside the interpersonal skills of leaders. This applied on a broad level, including having the ability to present their vision in a compelling and inspirational way, and at an individual level.
A leader who can manage their own emotions and understand those of others can create genuine connections with their staff and inspire them to work towards a collective vision. Leaders who display contrary behaviours and emotions, such as lack of sensitivity and coldness, are much less likely to be effective. Coaching and mentoring can be a useful tool to build emotional intelligence and self-reflection, as well as being a beneficial source of feedback for senior leaders. Leaders should also ensure they ‘walk the talk’ by role modelling healthy work behaviours to ensure that other staff feel confident doing the same.
Effective leadership is clearly of great importance for organisations who wish to maintain, and enhance, employee engagement, commitment, and a willingness to go the extra mile.
But good leaders don’t simply enter senior roles fully-formed; they require time, confidence and expertise to boost both their technical and interpersonal skills. When they’re provided with these tools, the best leaders show trust, emotional intelligence and are able to foster an environment of open communication and psychological safety, to benefit the everyday working lives of their staff and the performance of the whole organisation.
Jake leads on the Good Work Index, the CIPD’s annual benchmark of job quality in the UK. Jake has also contributed to many Evidence Reviews, providing a critical and evidence-based view on many different organisational areas, including employee engagement, digital work and mental wellbeing, and what works in diversity management.
