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The link between leadership and productivity

Bad bosses, toxic managers, stressed-out supervisors. The conversation around workplace culture has never been more focused on the ways leadership affects performance.

Back in 2021 and 2022, the talk was all about “quiet quitting,” when employees do the bare minimum to keep their jobs. Today, employee morale is so low that one recent report found 71 per cent of Canadian professionals will be looking for new jobs this year.

The worst part is that it’s not only the COVID-19 pandemic or the recent round of companies announcing layoffs that have led to this point. It’s poor leadership and mismanagement of organizations that have failed to recognize what employees really need from their employers.

Identifying hallmarks of an effective leader

It turns out that many of these issues can be almost completely erased by effective management. In fact, nearly seven in 10 employees say a good manager can impact mental health as much as a spouse or partner can. This means that good workplace leadership can create a culture where people want to go to work – and even stick around long term.

While it’s easier to define what makes a bad manager than a terrific one, effective leaders display certain fundamental behaviours, including:

• Empathy, or the ability to understand the feelings and needs of others, to build trust and care about employees. When managers are empathetic to employees, they can adapt expectations and offer support, which allows employees the flexibility to stick with their job even during a time of struggle.
• Accountability, or the ability to explain and understand the reasons for certain actions or decisions. Not only do managers need broad shoulders to maintain their own accountability to executives, but they must also hold their employees accountable for their own responsibilities in a supportive manner.
• Optimism, or a certain level of hopefulness and confidence about the future. Studies show that if people feel good about going to work – if they feel like their work matters and people care about them – they will be more motivated and productive at work. This creates a positive workplace culture, as well as a situation where employees want to stick around.

It goes without saying that managers need the skills and expertise in their fields to make proper decisions. But they must also give their direct reports the space to grow and learn as well.

Provide expert coaching support

The answer lies in coaching support. There are many different titles – mentor, advisor, consultant, guide – but everyone needs a good coach, especially workplace managers.

While there are many hallmarks of a good leader, the kind of manager that increases employee satisfaction and retention is a leader who is tuned in and can help identify career aspirations and the right pathway to reach their goals.

Organizations can help their managers succeed by providing support through coaching. This support isn’t just advice, training or mentoring. Rather, it guides managers to overcome personal mental blocks that have kept them from changing. For example, simply providing a handout with a list of ideal characteristics and instructing managers to follow the list will change nothing.

Rather, a coach can help managers embrace a new way of thinking. They ask questions, such as: What do you think is your leadership potential? What has held you back from reaching that potential? What do you need to change about yourself — no matter how difficult — in order to become a great leader?

This type of coaching isn’t easy, but it can play a critically important role in helping managers reach certain behavioural goals. These goals must be individualized to the manager but also help set the right tone on an organizational level.

Managers may resist this type of coaching, as it confronts basic beliefs about who they are as people. But it’s well worth the risk, as organizations that successfully provide support for managerial coaching will find all of their employees are more highly engaged and better aligned to the organizational strategy. Turnover tends to decrease, while productivity increases.

In short, good managers lead to happy employees.

Janine McInnis, CPHR, is associate vice-president for HUB International. A 20+ year veteran of the industry, she also has held various leadership roles with the CPHR Association in Nova Scotia.