Effective leadership pays off. Measuring leadership effectiveness in organizations tells us a lot about the future performance of an organization. Towers Watson’s Human Capital Index provides striking data showing leaders that are trusted by their employees generate higher employee commitment and return 42% more to shareholders. It is well recognized that good leaders are effective decision makers. But that does not entirely explain the high return to shareholders.
Effective leaders engage their employees by:
- Increasing their awareness of task importance and value.
- Getting employees to focus first on team or organizational goals, rather than their own interests.
- Activating their higher-order needs such as: Achievement, Self Respect, Belonging, Competency and Recognition, etc.
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