Be it our car or a bus; we know that the driving seat has a driver who knows the routes to destinations. Every office, school, or even a house needs a person to run the operations and lead the way. Business owners struggle to keep everyone on the same page and increase profitability.
Imagine if you have a boss who is just giving you orders to perform tasks, but he/she doesn’t care if you are comfortable or not. You will not only feel drained but frustrated as you have no one to vent out on, and earning finances is equally important to sustain your life. We can find different blogs and essays emphasizing the differences between a leader and a boss. But you cannot identify who you are until you step into the field.
There is no negating that the success of a business relies on the leadership qualities of business owners. Leadership entails many factors, from management to knowing your employees. A leader has to know it all. Leaders take hold of the driver’s seat to navigate and lead the way towards success. The driver can only speed up if the engine is functioning well. The engine here is the people or employees of a company. Your speed or drive to success depends on how efficiently the employees are working. It is only possible when a leader succeeds in keeping the employees engaged and interested in their work.
According to a Gallup survey, active but disengaged employees can cost a company around 450 to 550 billion dollars a year. With such a loss, the company will barely make it towards success. Leaders have a significant impact on their employees and their interest in the work. One such example of a good leader is Kuba Jewgieniew, who is effectively leading his company since 2005. He is also involved in various operations like branding, marketing, and every aspect of growth.
The following are some reasons that highlight the importance of effective leadership in thriving a business towards success.
Better Employee Engagement
Employees are the lifeblood of any business. It is not possible to build an empire without people. Your employees and their performance play a decisive role in the success or downfall of your business. A company with employees engaged and dedicated to their work can increase productivity by 19%. In contrast, disengaged yet active employees can make you lose hundreds of dollars. Effective leadership is all about how you keep your employees engaged, even on challenging days.
A survey reports that employees led by a highly engaged leader are 39% more active than those by disengaged executives. It is more like a chain reaction. A dynamic leader will impart their energy to the team or employees. Knowing about the operations and checking your employee’s progress will make them feel responsible. Giving them feedback and acknowledging their contributions to the business can boost the engagement level and profitability.
Positive Company Culture
Just like our house’s environment affects our mood, company culture is more like fuel to keep an engine running. A company culture results through a shared set of beliefs and mindsets developed through behaviors or experiences. These beliefs and actions are always a top factor in deciding the positive or negative aspects of company culture. A leader or any leading executive plays a vital role in determining a company’s culture.
If the team lead is all about micromanaging every task and pokes employees frequently, employees will soon get frustrated. That frustration will build tension in the environment, affecting everyone’s motivation and performance. A negative company culture slows down the productivity of the working staff and results in disengaged employees. Mediating a company culture by inculcating positive leadership attributes can attract more potential clients or customers and improve profits.
Retaining Customers
As much as a business or company needs employees, it also needs customers. Without customers, the company or employees cannot survive. One of the driving factors for long-term success and profitability is the successful retention of customers. Upon a bad experience with one brand, the customer never revisit, and the shop or brand loses a customer. Leaders create strategies, develop employees, and monitor customer service areas, communication, and results. A leader sets a bar for how the team should act, communicate with customers, and what strategies they can utilize to retain a customer. A leader’s strengths in customer service can significantly impact the services provided and the perceived values. Having good customer experience is a must for almost any business.
Strong Communication
Be it working in an office setup or remote working, your employees’ performance depends mainly on communication. Communicating your goals and targets to your employees will give them insight into what their leader wants, but it also helps them decide their roles. If you work with different teams, ensure communicating with every member to understand their needs and facilitate them accordingly. A leader who initiates conversation with its employees builds a trustworthy relationship and enables them to work more robustly.
Calling team meetings often and taking ideas from every team member makes them feel valued and develops a sense of ownership. Communication skills are indispensable for any workforce industry. A leader who often communicates with the employees is more likely to know about its operations than the one who doesn’t.
Accurate Decision Making
When you drive a car, you have to decide to take a bumpy road or a smooth route. Similarly, a leader’s decision plays a significant role in the success of a company. Your employees work on a project after getting approved by you, or the managers discuss it with their CEO. A leader can be a CEO or any other managing executive. Their decisions are what drives a business towards success. Your decisions will only be useful if you know your company’s progress, your employee’s needs, and the finances you have in store. A leader with strong decision-making abilities can easily decide what is best for their company and employees.
Conclusion
A business or company runs on strategies, employees, finances, and customers. Every business leader wants to maximize its profits and efficiency in the market. The profitability of a company is directly proportional to the productivity and engagement of employees. One might say that success depends on marketing strategies, managing finances, and other factors. These factors will appear useless if a leader cannot decide what is best for the company and everyone’s interests. A business leader involved in every growth aspect, and knows what the employees are doing, is more likely to mediate operations towards success and maximize profits.