While an organization employs an entire workforce, not all employees are capable of becoming an excellent leader. A worker may be given a role for leadership but leadership is not all about power and authority.
Good leadership is about having the power to influence oneself and other people to be motivated to accomplish goals. This is regardless of having a title or not. In other words, leadership is not a title, it is a skill of influence.
Not a lot of people possess leadership skills. Perhaps this is why according to Sylvester, 77% of organizations are experiencing a leadership gap. Without good leadership, an organization is into a lot of risk for failure.
The Lack of Good Leadership
In leadership, there is no middle ground. You are either doing good or doing damage. While each person can have their own style of leadership, not being able to inspire or motivate is detrimental.
According to Forbes, “the ability to inspire and motivate others is the number one competency that differentiates poor from good leaders, and in predicting high employee engagement.”
Leadership affects all areas of an organization. It impacts:
- Employee performance and productivity
- Employee retention
- Employee well-being
- Company culture
Here are statistics about bad leadership from the Huffpost:
- 75% of employees said their boss is the worst part about their workplace.
- 50% of employees plan to look for other jobs because they don’t feel that they are valued by their employer.
- Health care costs due to bad bosses are costing American companies $360 billion each year.
- 60% of workers are miserable working for the U.S. federal government because of having bad bosses.
- 65% of employees said that they would rather have a new boss over an increase in salary.
- 37% of employees reported that their boss didn’t give them credit.
- 44% of employees experience being verbally, emotionally or physically abused by supervisors.
Here are more statistics gathered from a study conducted by Florida State University:
- 39% of workers mentioned that their bosses failed to keep promises.
- 37% said their boss didn’t give them credit for their hard work.
- 31% of the employees said their bosses gave them the silent treatment.
- 27% reported that their bosses made disparaging comments about them to other employees and managers.
- 23% said their bosses blamed them to cover up their own mistakes.
With the lack of good leadership, employees can feel less or not valued at all. Moreover, with bad leadership, employees can become disengaged and employee retention can plummet. Attracting and keeping top talents can become almost impossible with a lack of good leadership.
Employee disengagement is a critical issue. An organization with a disengaged workforce is in shambles. Here are the dangers of having a disengaged workforce:
- According to Queens School of Business and Gallup, disengaged employees make 60% more errors and mistakes, cause 49% more accidents and have 37% higher absenteeism rate.
- Disengaged employees are costing their employers $450 – $550 billion per year. – Harvard Business Review
- A study by SHRM found that the average cost per hire is $4,129 and the average time it takes to fill the vacant position is 42 days.
The Importance of Good Leadership
While the lack of good leadership is detrimental to an organization, having excellent leaders allows you to achieve ideal company results. In choosing leaders, don’t make the mistake of promoting individuals who are the best at their jobs.
Being the best at work is different from being a good leader. While performance matters, there are more other factors that you need to consider when choosing future leaders. Here’s what you need to look for when looking for leaders:
- High emotional intelligence
- Solution oriented
- Values and listens to opinions of others
- Has a positive attitude
- Can deal with different personalities
- Can adapt to changes
- They evaluate to empower, not evaluate to criticize.
- Can inspire, motivate and coach others
- Good communication skills
Those are but some of the key characteristics that are critical in leadership. As what Inc mentioned on their blog, “focus on potential, not performance”. Look for evidence of these characteristics to ensure the right people are placed on leadership positions.
The importance of good leadership resonates throughout all aspects of an organization. According to Sattar Bawany, Managing Director of EDA Asia Pacific, leadership is responsible for an organization’s increase in productivity.
Moreover, good leaders help create a positive company culture. This impacts not just productivity and performance but also employee engagement and retention. Having good leaders and a positive company culture is one of the best ways to attract the best candidates.
Great leaders know that to succeed, an organization has to be employee-oriented. One of the main reasons why employees become disengaged and even leave their jobs is due to lack of recognition. This is according to Gallup.
With an empathetic leader, employee satisfaction, happiness and overall well-being can be improved.
With good communication and coaching skills, leaders are better able to educate employees about the importance of employee benefits, how to deal with work stress and even with helping others on how to refinance student loans.
Here are statistics about good leadership:
- Companies with strong company cultures experience 400% increase in revenue. – Forbes
- Highly-engaged employees are 87% less likely to leave their jobs compared to unhappy employees. – Recruit Loop
- According to Salesforce, employees are 4.6 times more likely to feel empowered to be at their best when working.
- Engaged companies have 233% greater customer loyalty. – Aberdeen
The importance of good leadership shouldn’t be taken for granted as it is the key to an organization’s growth and success. With good leadership, you improve the overall quality of your company.
Identify potential leaders in your organization today. They hold the ideas, principles and values that will bring your business onwards to success.