It is becoming well known that leadership affects the productivity and efficiency of a company, from sales to customer satisfaction and more. How leaders choose to lead their teams influences these statistics. This demonstrates a middle area, where the leader affects the employee, which in turn affects the company. Studying this chain reaction has allowed us to understand the impact of good leadership on employees.

The Impact of Good Leadership on Employees

Positive Values

Have you ever had a sleazy boss? If so, you have likely noticed how their skewed morals can negatively influence employees, especially younger employees new to the workforce. Good leadership entails actively following positive values. Not only do you need to communicate those values but demonstrate them in your actions every day. Such positive values include honesty, integrity, positivity, and kindness.

Trust & Openness

When your employees trust you, it builds a strong company foundation. Trust is earned in a variety of ways, but it includes employees trusting you to:

-Be open about company objectives

-Make decisions based on integrity

-Be honest about company concerns

-Fully disclose terms and conditions of projects

-Be discreet when informed of personal issues

-Handle internal disputes fairly

-And more

Essentially, you want your employees to be comfortable coming to you with problems and concerns while still maintaining a professional employer-employee relationship.

Clear Communication

When companies or leaders are secretive about their actions or are unwilling to communicate with their employees, it quickly leads to confusion, distrust, anxiousness, and other adverse side effects.

However, countless companies found that good leadership of employees through clear communication improves effectiveness and fosters strong relationships on every level. By communicating everything, from the company’s values to the “why” behind specific decisions, employees feel included in the company’s culture and a part of the greater mission.

Employee Morale

Lastly, the impact of good leadership on employees is present in employee morale. When leaders make an effort to demonstrate everything above, it decreases turnover rates, heightens daily positivity, increases employee engagement, and will eventually lead to a higher profit for the company.

Learn More about Leadership

Would you like to continue improving your leadership knowledge? We encourage you to read our blog!