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Now more than ever is the time to lead from the front. Our unique survey of more than 200,000 workers shows that those companies where the leadership communicates effectively and has a focus beyond profits alone are the ones managing to carry their staff with them.
Last month, Tim Kirley, UK head of financial services firm Edward Jones, sent a letter to all associates to congratulate them on a great start to 2009 and to thank them for their hard work. The message, which acknowledged there had been some disappointing investment results, was sent to rally the troops, and to remind them why they are there.
“You work through the fog of political doubt and economic gloom in order to help individual investors meet their needs,” he wrote. “The facts are individuals need your help more than ever.” And Kirley’s associates need him. Employees at the firm, which ranks second overall on the mid list, voted him best leader (see page 10).
Our data shows a clear link between faith in the leader and concerns about the future. In companies where there is a great deal of trust in the leader, 54% of employees say the economic climate makes them worried about their firm’s future compared with 74% in firms where staff lack faith in the man or woman at the top.
Analysis shows that just one in three employees who give a strongly positive response when asked if they are excited about where the organisation is going have worries about it withstanding the downturn, compared with almost three out of four of those with a strongly negative response.
Data also shows that people worry about the future when profit appears to be the main driver.
Motivation and commitment are strongly linked to good leadership. Where there is not a great deal of faith in the leader, just 40% of staff are engaged compared with 93% of those who have faith in their boss.
“It is really important to have faith in the leader to bring you through difficult times,” says Dr Pete Bradon, head of research at Best Companies Ltd.
The converse can also have serious repercussions for wellbeing and staff retention. Almost half of employees who have little faith in their boss reported stress-related symptoms in the previous 12 months, a figure reduced to barely a fifth among those with a great deal of faith in the boss. More than 60% of those with not a lot of belief in the company head would leave tomorrow if they had another job.
It is also critical for workers to have confidence in the broader team of senior managers, and to feel that they are good listeners. “If senior managers do not talk to staff they are going to be more worried and it is going to affect their performance,” Bradon says.
“Strong leadership is absolutely fundamental,” adds Mike Emmott, employee relations adviser at the Chartered Institute for Personnel and Development. “It is the CEO and the board who steer it. It is down to them.”
Despite the general gloom in the car industry, the Peter Vardy car business is still doing well despite the tough times. Good planning and communication have been key.
“We make a big deal of communication, keeping people informed about what is happening, where we are with the numbers, what the targets are,” says Peter Vardy, chief executive.
He has made a point of being specific about what technicians and the sales team need to be doing on a daily basis to help ride out the downturn. “It is all to do with preparation, planning, motivating the team and setting expectations.”
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