The impact and benefits of good leadership in the workplace

What is leadership and what makes a good leader?

The difference between thriving businesses and struggling ones isn't just strategy—it's leadership that inspires teams, drives innovation, and delivers measurable results that transform workplace culture from the inside out.

"People leave managers, not jobs"

According to LinkedIn's Workforce Confidence Survey, seven in 10 US employees would leave a job because of a bad manager. The survey also found that poor leadership can discourage employees from seeking management positions themselves.

This is especially relevant for younger generations who seek more than just a paycheck - they want purpose, growth, and fulfilment. And if they’re not getting it, they aren't afraid to move on.

So, what can you do to retain your top talent? It starts with understanding what matters to them.

Are they looking for challenging projects? More autonomy?

Opportunities to learn and develop new skills? By creating a work environment that meets these needs, you'll not only keep your employees happy but also drive your company's success.

Strategic approaches for managers to engage their employees

Work with them to create personalised career development plans

Employees often leave their positions because they don't have a career path carved out for them within the company. Providing employees with opportunities for growth and development can increase job satisfaction and reduce turnover, especially in the long run.

Overall, career development plans can help individuals reach their full potential, improve their happiness, and better prepare them for future opportunities.

Play to their strengths

These days, it’s all about matching work with skills and interests. For example, you might recognise that some individuals aspire to grow into managerial roles, while others prefer to deepen their expertise as an individual contributor.

When we focus on each team member’s unique strengths, something amazing happens. We don’t just get better results; we build connections, boost morale, and create a truly collaborative work environment. 

Encourage meaningful work

The most successful leaders recognise that being a manager isn’t just about assigning tasks—it’s about creating meaningful work that inspires and motivates. They help their team discover work that truly excites them.

Sometimes, this means reshaping roles to make them more challenging and fulfilling. When people feel passionate about their work and see opportunities to grow, they’re more likely to be engaged, productive, and loyal.

Be an active listener

Great leaders know the value of listening, not just hearing. Active listening fosters trust, builds stronger relationships, and ensures team members feel valued and understood.

For STEM leaders, this means paying close attention to the technical details, challenges, and innovative ideas your team shares. It’s about asking thoughtful questions, giving undivided attention, and responding with empathy and clarity. 

Create an open workplace culture

Creating a more open and inclusive culture within an organisation can have significant benefits for both employees and the company as a whole.

An open culture promotes transparency, honesty, and a willingness to listen to and learn from others. To create such a culture, leaders should encourage open communication, where employees feel comfortable sharing their opinions and ideas without fear of judgment or retribution. This can be achieved through regular team meetings, town hall sessions, and one-on-one meetings.

Additionally, leaders should lead by example, demonstrating transparency in their decision-making processes and being open to receiving feedback from their team members.

The true impact of good leadership

The power of good leadership can be immense and far-reaching. As discussed previously, it’s an abstract concept that can help transform companies from the inside out. Some of the benefits of effective leadership include:

Increased productivity

Good leaders can create a positive work environment, motivate their employees, and provide clear direction and guidance. This can lead to increased efficiency and productivity. A more engaged and committed workforce is a high-performing one. The higher performing they become, the more likely they are to drive innovation within the company. 

Improved decision-making

Effective leaders can analyse complex situations, weigh the potential outcomes, and make informed decisions. This leads to more effective problem-solving and is a standard for thinking about what makes a good leader. However, it’s not only about making the best decisions encouraging better decisions. 

Stronger organisations

Effective leaders strengthen teams and businesses by fostering relationships, delegating tasks, and inspiring employees. They emphasise organisational values, support personal development, set goals, create opportunities, and provide recognition.

Engaging employees in frequent conversations about their work strengthens their trust in their leader. This creates a culture of trust and collaboration, leading to increased success and longevity.

Increased innovation

Effective leaders inspire and motivate employees to think creatively, fostering innovation and generating new solutions that drive revenue growth. McKinsey research reveals that committed innovators evolve their businesses faster and achieve double the output from recent offerings compared to their peers. Thus, enhancing innovation is a key trait of modern leaders.

Better employee engagement

Employee satisfaction and productivity go hand in hand - when employees feel invested in their work, they're more likely to produce great results.

In fact, organisations with high employee engagement are 22% more profitable than those without. However, according to Gallup's State of the Global Workplace report, only 35% of the workforce is engaged in their positions. The other 65% are indifferent and neither like nor dislike their jobs, and they represent a risk that could tilt in both directions, good or bad.

Especially during these post-pandemic times, where remote work is becoming increasingly prevalent, effective leadership is more important than ever. According to Gallup's State of the Global Workplace Report, these trends continue to shape how leaders must adapt their strategies. These are just a few of the many benefits of effective leadership. The power of good leadership can have a profound impact on individuals, teams, and organisations and is an essential ingredient for success in any field.

Modern leadership challenges in 2025: Navigating the new workplace

Today's leaders face unprecedented challenges that require adaptive strategies and fresh approaches. The rise of hybrid work models, multi-generational teams, and rapid technological change has transformed what effective leadership looks like.

Leading remote and hybrid teams effectively 

Managing distributed teams requires different skills than traditional office-based leadership. Successful remote leaders focus on outcomes rather than hours worked, establish clear communication protocols, and create virtual environments that foster collaboration and connection.

Key strategies include regular video check-ins, digital team-building activities, and ensuring all team members have equal access to information and opportunities regardless of their physical location.

For more insights, explore our guide on managing remote teams effectively.

Managing multi-generational workforces

With up to five generations working side by side, leaders must understand different communication styles, career expectations, and motivational factors. Generation Z employees prioritise purpose and flexibility, while experienced workers often value stability and recognition for their expertise.

Effective leaders tailor their approach to individual preferences while maintaining consistent standards and fairness across all team members.

Building resilient leadership skills for long-term success 

Developing emotional intelligence as a core competency 

Leaders with high emotional intelligence see 25% better business results compared to those who lack these skills. This includes self-awareness, empathy, and the ability to manage emotions during stressful situations.

Practical ways to develop emotional intelligence include seeking regular feedback, practicing active listening, and learning to recognise emotional triggers in yourself and others. Research from Harvard Business Review shows that emotional intelligence can be developed with consistent practice and self-reflection.

Embracing continuous learning and adaptability 

The most successful leaders are lifelong learners who stay current with industry trends, new technologies, and evolving best practices. This means investing in professional development, attending leadership conferences, and learning from both successes and failures.

Discover more about leadership development strategies that drive results.

Organizations with learning-focused leaders are 46% more likely to be first to market with new products and services, according to McKinsey's research on organizational learning.

Five common leadership styles

In today's fast-paced and ever-changing business world, corporate leaders play a crucial role in the success of a company. Effective management initiatives can inspire and motivate employees, drive innovation, and help companies navigate challenges and opportunities.

Many companies have set a high bar for leadership excellence, with visionary CEOs who have demonstrated outstanding leadership skills and achieved remarkable results creating, adapting and implementing new business practices.

From Jeff Bezos of Amazon to Mary Barra of General Motors and Satya Nadella of Microsoft, we look at the leadership styles and philosophies that have made these senior leaders stand out in their respective industries

Amazon: Innovation-driven leadership principles

What started as an online bookstore is now listed as one the biggest organisations in the world. Amazon was founded by Jeff Bezos, a former electrical engineering and computer science graduate from Princeton University.

Under Bezos' leadership, Amazon has become known for its focus on company growth, innovation and customer-centricity, and this translates to this day. The company has very strong leadership principles (also known as LP's), and the workforce is encouraged to explore them and use them in daily tasks.

They are hired, evaluated and promoted based on the LPs that are annually revisited and reviewed, so they are always up to date. A few good examples are "Bias for action", "Hire and develop the best", and "Insist on the highest standards".

General motors: Diversity and innovation leadership

One of the greatest motor companies of all time, GM started another era in leadership through the figure of Mary Barra, the first female CEO of a major global automaker.

Since she took over, GM has started focusing on innovation and financial performance, as well as internal directions for equality. Under her leadership, General Motors has increased its focus on gender and racial diversity, and the company has been recognised for its efforts in this area. "A culture where everyone thrives" is based on diversity that by all means creates the feeling that a "stronger workforce and promotes fresh, innovative thinking".

All this is needed to sustain long-term commitment from employees and create long-term value for the business.

Autocratic leadership

This leadership style involves independent decision-making with little team input, prioritising control and efficiency. It is effective in crises requiring swift action.

A notable example is Steve Jobs, Apple’s co-founder and former CEO, known for his centralised decision-making and vision. Based on his perfectionist instincts, he independently shaped Apple’s iconic products, like the iPhone and MacBook.

Coaching leadership

This style emphasises personal and professional growth through mentoring employee skills and development. A coaching leader offers guidance, constructive feedback, and support, urging employees to set goals and take ownership.

Jacinda Ardern, former Prime Minister of New Zealand, exemplified this style, especially with younger audiences, promoting open communication, collaboration, initiative, continuous learning, and purpose in roles.

Laissez-fare leadership

A laissez-faire leader delegates authority and promotes self-directed problem-solving. They provide minimal oversight, trusting employees to be accountable.

Sundar Pichai (CEO of Alphabet and Google) is recognised for his calm, empowering, and supportive leadership, fostering innovation and autonomy for teams to experiment and create groundbreaking products.

The importance of leadership training

Providing your managers with top-notch leadership training can have a huge impact on your bottom line - and on your employees' happiness.

Sure, some qualities make a great leader - charisma, vision, and drive, to name a few. But even the most talented managers can benefit from additional tools, techniques, and experiences that enhance their abilities to lead others effectively.

By investing in their development, you'll not only improve their performance but also create a more engaged, productive, and satisfied workforce.

At the end of the day, the goal of leadership training is to help individuals become better leaders and coworkers. By giving your managers the skills they need to succeed, you'll be setting your company up for long-term success.

This can include training in communication, decision-making, conflict resolution, team building, vision setting, and ethical leadership. And it reflects directly on the organisation's profit margin!

A study from the American Society for Training and Development (ASTD) showed that 218% higher income per employee and 24% higher profit margins than companies that don’t invest much in it.

All of this can be conducted in various formats, such as workshops, seminars, online courses, or one-on-one coaching sessions.

Measuring leadership effectiveness: Key metrics and indicators

Employee engagement and retention rates 

The most reliable indicator of leadership effectiveness is how engaged and committed your team members are. Teams with engaged leaders see 67% less turnover compared to those with disengaged management.

Regular employee satisfaction surveys, exit interview feedback, and retention statistics provide valuable insights into leadership performance and areas for improvement. Learn more about employee retention strategies that successful organizations implement.

Performance and productivity metrics

Effective leaders drive measurable business results through their teams. This includes tracking key performance indicators, goal achievement rates, and overall team productivity improvements.

High-performing teams with strong leadership deliver 21% higher profitability and show consistent improvement in both individual and collective outcomes.

Innovation and growth indicators 

Great leaders foster environments where creativity and innovation thrive. This can be measured through the number of new ideas generated, successful project implementations, and the team's ability to adapt to changing market conditions.

Organizations should track innovation metrics such as time-to-market for new initiatives, employee suggestion implementation rates, and breakthrough solutions developed by their teams.

Common leadership mistakes to avoid 

Micromanaging instead of empowering 

One of the biggest leadership pitfalls is trying to control every aspect of your team's work. Micromanaged employees are 68% more likely to feel burned out and consider leaving their positions.

Instead, focus on setting clear expectations, providing necessary resources, and trusting your team members to deliver results in their own way.

Failing to provide regular feedback and recognition

Many leaders assume their team members know when they're doing well, but regular recognition and constructive feedback are essential for maintaining engagement and driving improvement.

Employees who receive weekly feedback are 3.2 times more likely to be engaged compared to those who receive feedback less frequently, according to Gallup's research on employee engagement.

Implementing structured feedback systems and performance management best practices can significantly improve team engagement and productivity.

Partner with Airswift to access top managerial talent

If you're looking to expand your global team, partnering with Airswift can simplify the tasks of hiring, onboarding, and managing a distributed workforce with ease and efficiency. Working with an experienced global partner will grant your business access to the best talent pool available for any type of professional profiles that you might need.

We work to simplify the process and help connect your organisation with people in leadership roles.

With our presence in over 150 locations worldwide, our service teams are dedicated and ready to help you onboard top international talent. Contact us to learn how you can customise our full suite of global employment solutions to suit your specific needs.