3 steps to having quality leaders

Companies face changing environments every day, which make their operations difficult and one of the most frequent challenges they face is the shortage of leaders who occupy essential positions within the organization. The lack of people who are trained to lead the operations and objectives of the company could put the stability of the project at risk in the face of a possible economic recession.

According to the Global Leadership Forecast study, in 2023 there has been a considerable drop in the ratings that evaluate the quality of leaders in companies. This is a sign that CEOs must prioritize a change in their strategy to produce elements that have the necessary capacity to lead.

“Solo 40% of employees says his company has high-quality leaders overall, a drop of nearly 20% compared to just two years. That puts the current leadership quality ratings close to the numbers shown after the 2007-2008 economic crisis,” said Stephanie Neal, director of the Center for Behavioral Analysis and Research (CABER) at Development Dimensions International (DDI).

It is estimated that the main challenge that companies will face will be the talent retentionsince there is a drop in the confidence of the collaborators towards the leaders, it causes an increase in staff turnover, because they do not feel valued or because they believe that they do not belong to a project with clear objectives.

“In the midst of all the challenges they face, CEOs are aware that their greatest risk is not having the necessary talent to achieve their objectives and face the challenges that lie ahead. According to the survey, 54% of companies increased their turnover rate in the last year. This has made retention an acute challenge that CEOs and HR directors recognize they must address to propel their success against all other challenges,” Stephanie said.

The study concludes that 59% of CEOs identify talent retention as their main concern for this year and there are three ways in which leaders can restore confidence of its collaborators and promote the retention that is required.

1. Promote and generate new leaders

Companies that focus on promoting and creating new leaders within their organization find fewer problems filling positions with critical roles and having trained personnel, they avoid increased turnover and continue to promote the improvement of talent in the teams; However, the study shows that only 12% of the organizations have an adequate program that promotes the generation of new leaders.

“HR executives at these companies are actively preparing their leaders to think about the talent needs of tomorrow and offer high-potential employees the opportunities to develop and grow their careers. As a result, the leaders of these companies were much more confident in their leadership quality. Leaders rated their company’s overall leadership quality 10 times higher in organizations with strong bench-tops compared to their peers,” Stephanie points out.

2. Build a culture of trust

The lack of confidence of the employees towards the leaders can directly affect the productivity, growth and innovation within the company, for this reason it is important that the collaborators receive the job security that is required so that the operation of the organization is not affected. .

“Only 46% of leaders report that they definitely trust that their direct manager will do the right thing. CEOs and senior leaders will need to do more to build trust and win back the trust of their employees. Doing so will also help them retain the talent they are working so hard to attract and develop,” concludes Stephanie Neal.

3. Lead with clear objectives

When the company helps managers and managers lead their projects and teams with clear objectives, its operations and productivity are stabilized, as the study indicates that they are nine times more likely to feel committed to their role and 24 times more likely to plan to stay with the company than their peers who don’t feel the same strength of purpose.

“By implementing effective talent strategies By building trust and purpose, leaders can help meet the expectations of their employees, create a strong and engaged workforce, and ultimately achieve their business goals,” concluded Stephanie Neal.