If you have read our People Spark blog or heard us speak, I’m sure you've noticed we often cite this finding from a Gallup report: 70% of the variance between a strong company culture and a lousy one is the knowledge, skills, and talent of the team leader. We share this statistic because it highlights how important leaders are to building and growing a business.
Managers and supervisors are the driving force behind company culture. When leaders communicate clearly, give meaningful feedback, and recognize employees for a job well done, the whole organization benefits. Research shows that when organizations are intentional about culture and leadership, profitability jumps by 21%. Developing your top people and your people leaders boosts morale, productivity and retention across the entire company. It gives you a leg up on the competition, too.
Here are four of our proven strategies for building a strong leadership team.
1. Be realistic about what’s needed for success
Before you promote a strong performer to the leadership team, it’s imperative to first assess what skills the role requires. You already know your employee is hard-working and 100% committed to helping the business succeed. The question is, does that make them ready to lead? Not necessarily, since an individual contributor’s skill set is very different from a manager's or supervisor’s skill set.
If you’re hesitating to promote a strong employee, take heart. After decades in the HR business, we know that great leaders are made, not born. We’ve seen managers and supervisors transform after learning and mastering fundamental leadership skills and strategies. When you invest in the development of your current and prospective leaders, they can reach their full potential and your teams and your business will thrive. Companies that recognize the link between strong leaders and long-term retention prioritize the investment.
2. Focus on “soft” skills—because they’re essential
A recent report found that 95% of employees say bad managers make workplace stressors worse. It also found a manager’s “soft skills” — such as their ability to build trust, motivate others and recognize their team — are a powerful predictor of retention. Makes sense, since workers want to feel safe, valued, and connected. When they don’t, they’re willing to walk.
We talked about this during a recent session of our Ignite to Transform for Team Leaders course. A supervisor was complaining about employees arriving late, zoning out on their phones, and delivering sub-par work. Yet, this manager had no interest in giving feedback to inspire employees to do better. His thinking: “I pay them to do a job, and I expect them to do it.” So, were we surprised to learn his company was struggling to attract and keep good workers? Not at all.
A proven way to inspire, motivate and retain employees is to ensure your leaders are open, communicative and respectful. When managers get professional training and apply such “soft” skills, business changes for the better.
3. Teach leaders how to give meaningful, actionable feedback
We know that for most managers, giving feedback isn’t easy. Who wants to risk upsetting someone and dealing with lingering resentment? Fortunately, leaders can learn the secret to giving great performance reviews and how to give effective, meaningful feedback that makes people feel motivated, inspired, and aligned with the company’s expectations and values.
Whether it’s using, “I noticed” statements to make people feel valued and seen, embracing a straightforward feedback framework like “BIT: Behavior. Impact. Tomorrow.”, or simply making a point to thank your team for their hard work, giving regular feedback is a key part of successful leadership. That’s why it’s a smart investment to ensure your team knows how to do it well.
4. Remind leaders to watch their words
Great managers need to be great communicators. We created a “cheat sheet” of ten key phrases designed to help managers communicate clearly with employees no matter how crazy things are on the floor or in the field. Here are a few examples:
- To recognize an employee’s good work, say: "Thank you." Or "I appreciate you."
- To clarify something or avoid a miscommunication, say: "What am I missing or what I am hearing you say is …"
- To address or change a critical concern, say: "Let me be clear." Or "This is not okay."
In our 30+ collective years as HR consultants, we’ve seen languishing teams transform when leaders focus on key goals like building relationships, creating a culture of accountability, and motivating employees. It’s a game-changer for businesses, and we love sharing our straightforward strategies to get leadership teams in tip-top shape.
