How Empowerment of Leaders Shape Company Culture [+Examples]

Leaders create a huge impact to their organization. This is because they help shape company culture and boost the morale of the employees. Leaders also guide everyone towards a common goal encouraging teamwork to accomplish the mission.

Good leaders help bring out the best in workers. Their influence fosters a positive company culture and they are crucial for the survival of an organization. While this is the case for good leaders, bad leaders, on the other hand, have the opposite effect.

Bad leaders can cause a negative environment for workers, cause workers to leave and can cause a decline in productivity and sales. Regardless, leaders impact company culture because of their skill to influence others. 

As what John Maxwell said, “leaders become great not because of their power, but because of their ability to empower others. Here’s how empowerment of leaders shape company culture:

Leaders Empower Others

Leadership is not based on any title or position but is a skill of influence. It’s a skill to influence oneself and others to do what must be done despite any situation. The difference between good leaders and bad leaders is their perception of people and events.

Good leaders are solution-oriented while bad leaders focus on the problem. Good leaders also know how to find a lesson out of a failure or problem. They also interact with employees based on respect.

Good leaders don’t take advantage of fear. They empower employees based on positive communication. This may be in the form of giving compliments, recognizing the efforts of workers or listening to the input that employees offer.

But just how important is recognizing employees for their work? You might be surprised with just how significant the impact of employee recognition is. According to a research conducted by Gallup, lack of recognition is the main reason why employees leave their job.

And guess what? According to a poll by Gallup, 65% of employees haven’t received any form of recognition for an excellent work that they’ve done in the last year. Here are more shocking statistics:

  • 49% of employees in the US are not satisfied with their job. This is from the Conference Board’s latest survey
  • Half of U.S. employees are considering a new job. This is according to a panel study of Gallup Workforce
  • A poll by Gallup found that only 1 in 3 workers stated that they received recognition for doing an excellent job in the last seven days. 

Empowering employees is a key to shape company culture that is engaged and an engaged company enjoys the benefits of higher productivity, sales, a positive work environment and a loyal workforce.

Here are the statistics of engaged companies:

  1. According to Business2Community, companies that have high employee engagement outperform those with low employee engagement by 202%. 
  2. Employees who think their voices are heard are 4.6 times more likely to feel empowered to do their job at their best. This is according to a study conducted by Salesforce.
  3. According to Businessolver, 93% of employees stated that they are more likely to stay if their employer is empathetic.
  4. According to Reward Gateway, 70% of employees said that their morale and motivation would improve greatly if their managers would say thank you more.
  5.  A study conducted by Aberdeen showed that engaged companies experience 233% greater customer loyalty and a 26% increase in annual revenue.

How to Empower Employees

Empowering employees isn’t a problem if you’re an empathetic leader. If you’re not empathetic, don’t worry. You can model from empathetic leaders or employees and learn to be more empathetic from modeling them.

According to Tony Robbins, “success leaves clues”. If you want to be successful, you can do what successful people did to achieve success. Same with being empathetic, you can do what empathetic people do to become more empathetic.

Over time, it will become more natural to you. Becoming empathetic to empower is essential because you get to see from the perspective of the employees. This helps you understand them more for you to better motivate and inspire them.

Here are different ways on how you can empower your employees:

  1. Set your ego aside
  2. Greet your employees
  3. Accept input and ideas
  4. Give them compliments for their hard work
  5. Make the vision of the company clear to them
  6. Be more patient and forgive mistakes
  7. Give constructive feedback
  8. Delegate tasks for them to 
  9. Do not micromanage employees
  10. Provide growth paths

If leaders strive to empower their employees, having an engaged workforce is certain. The quality of an organization is determined by the quality of its employees and the quality of the employees can be dependent on the quality of their leaders. 

If employees are disengaged or have a bad leader, here are the dangers:

  • Disengaged employees are costing their organizations between $450 to $550 billion per year. This is according to Harvard Business Review Report
  • According to a Gallup poll, 75% of employees leave their job because of their boss. 
  • According to a research conducted by Chris Zook of Bain and Company, a whopping 60% of employees don’t know the goals of their company nor how to support them. 

Don’t risk having an organization with a poor company culture. Shape company culture that is based on recognizing employee efforts, good communication and overall, excellent leadership skills.