It is often said that people join companies and leave managers. So, it should come as no surprise that good leadership can greatly improve employee retention. In this market, retention is more important than ever. We are in the midst of a talent crunch; the unemployment rate sits at a healthy 3.9%. Meanwhile, fields like accounting, IT, and healthcare are rapidly expanding. There is a shortage of skilled professionals to meet the rising demand for talent. Improving leadership is one of the easiest ways to increase retention in the accounting field.
Great leaders are often humble and trustworthy. The role of a leader is to inspire and provide encouragement for their team. Great leaders offer guidance while also allowing for creativity. They should also give employees the autonomy they need to feel confident in their abilities. If leaders take on too much responsibility they do not give employees the opportunity to grow. In turn, employees will likely feel that their managers do not trust them to complete their work effectively. This can foster self-doubt among your team members. On the other hand, leaders should avoid micromanaging their employees which also erodes trust and leads to frustration. Offering guidance and making yourself available if problems arise are simple ways you can improve your leadership skills.
Leaders should create an environment where employees feel they can communicate without repercussion. Communication fosters trust and creative problem solving, and employees tend to show loyalty to leaders who have an open and engaging communication style.
A Sense of Purpose
Employees are also more likely to stay at a job where they feel valued. They need to believe the work they perform contributes to the success of the company as a whole. Leadership is an essential part of this dynamic. By helping employees set goals and by communicating the goals of the company to the employees, leaders can show employees how their personal goals align with the company’s goals. Constructive reviews also help. Review sessions are useful because it is a chance to show employees how much progress they have made towards meeting their goals and offer constructive critique to help the employees continue to develop and improve. Managers should also look out for the success of their time by actively providing a variety of training and education programs.
While having goals is important, creating a fun environment is too. Company parties and other social events will make employees feel like they are part of a community. People are social creatures, so they want to interact and make connections. Social outings also help the team build professional networks and camaraderie.
Leaders have a direct impact on the way employees view their own contribution and the value of the work they do. Thus, strong leadership can make or break a company’s retention rate.
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