In the not-so-distant past of the business world, leaders managed via a hierarchical work structure, involving an authoritarian approach focused on results, regardless of what it takes to get them. Lately, however, we see new trends developing. With the job market being as competitive as it is, employee retention, loyalty, and trust are priorities, something unseen in the leadership approaches of yesteryear. To address these values, organizations need to promote a coaching mindset—a more collaborative, supportive, and people-first value system.
Introducing coaching will help your organization thrive in people performance and the economic performance. Employee retention is a major cost to business, and with the job market as competitive as it is, great people can and will leave well-paying jobs with strong benefits packages due to a lack of loyalty. There’s always another opening out there for strong, talented employees, and while a competitive salary is of course welcome, it’s not the be all end all anymore. High employee turnover is costly, with many factors impacting the financial side of losing talent, such as paying other employees potential overtime hours to cover, restarting the onboarding process, finding and training a new person, loss of productivity, etc. It’s a lot cheaper to keep the talent you’ve already developed, and who have strong relationships with your team, with clients, and have a strong understanding of their role.
If retention is essential to the bottom line of the organization, and to the overall performance of the team, we have to take steps to improve it. How do we do that?
Developing trust and loyalty within your people, and developing their trust in you as a leader, are absolute musts.
Developing trust and loyalty within your people, and developing their trust in you as a leader, are absolute musts. When faced with an extremely competitive job market, a highly sought after employee will be offered benefits packages and competitive wages, but what makes them stay with their current company? A sense of loyalty. How can that sense be developed within your people? By showing your team members that you value their thoughts, input, ideas, and who they are as people. How do you prove, as a leader, that you’re worthy of their trust? By demonstrating empathy and understanding, while also proving your competence as a leader, and leading with positive intention. You also accomplish this by showing they have your trust.
This is where the coaching mindset steps in. As we move away from an authoritarian leadership approach and step toward a coaching approach, we’re introducing a more empathetic, collaborative, and person-focused style of leadership. Effective coaching has the power to develop trust and loyalty, having a direct effect on employee retention. This is all done with proving you, as a leader, value your people as people, and believe in their capabilities.
Strong coaches promote development and actively mentor their people to become the most educated, well-developed, and driven versions of themselves.
Strong coaches promote development and actively mentor their people to become the most educated, well-developed, and driven versions of themselves. Having consistent moments of connection with your people reveals their goals within the workplace, as well as what they value outside of the organization. Helping them reach their professional goals through continued prioritization of learning and development, while also giving room for personal passions, shows you value them and their contributions to the company.
During one-on-one conversations, demonstrate active listening! This is a quick and powerful adjustment that shows your people you are engaged and care about what they’re saying. Ask questions and create a safe space for them to do the same. Lead these connections with empathy and curiosity, offer constructive comments and genuine interest in their ideas, and provide opportunities for further development as much as possible.
And don’t forget to celebrate wins! Even a short congratulatory email following a goal being met can mean a great deal! Showing your people you value them is a huge step in the development of their loyalty to you. In doing so, you’re also creating longer-tenured employees, who are performing at their best. Engaged and productive team members are the most beneficial for your organization.
Building trust is a hard process, but 100% worth the time and effort.
Trust is another essential to the employee-leader relationship—one that can make or break their relationship with the organization as a whole. If a team member doesn’t trust their leader, they won’t be as actively engaged, may be nervous about voicing concerns, and will be more easily swayed to leave if the opportunity arises. Building trust is a hard process, but 100% worth the time and effort. People are more willing to face challenges, have difficult conversations, and reveal weaknesses or lack of understanding to leaders they trust.
At the core of trust is psychological safety. This is the feeling of being free to be honest and vulnerable within a conversation without fear of reprisal. Strong coaches make that sense of trust flow both ways, through genuine understanding, vulnerability in their own shortcomings, and clarity about their development to demonstrate their lack of hypocrisy and prioritizing development across all levels in the organization. Building trust involves acting with integrity and consistency, proving to your people that you can be trusted through your actions, not just your words. Strong leaders and coaches foster trust through respect, showing genuine concern, and maintaining this level of mutual respect with each person and between members of their teams.
A coaching leadership style focused on building trust and loyalty has a significant effect on employee retention.
A coaching leadership style focused on building trust and loyalty has a significant effect on employee retention. Coaching leaders have the power to directly influence their team members for the better, simply by focusing on developing their interpersonal relationships and showing they value their people as people, not just assets to the organization. Leaders who prioritize coaching in their interactions with their people are more likely to retain their valuable employees, building a stronger, higher performing, and more positive workplace in the process.
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