The world of business and work is ever-changing, but methods of leadership haven’t changed with the times as much as many employees would like. This is because leaders and stakeholders are too focused on metrics and the bottom line, despite evidence it doesn’t work as well as other kinds of workforce encouragement. We explore why managers still obsess over the numbers and how true leaders encourage teams instead.
YES, NUMBERS DO MATTER, BUT NOT AS MUCH AS YOU THINK
Using metrics as a leader can come in many forms. Some leaders use scare tactics on their employees, telling them that they have to reach a certain output at the cost of their jobs or a portion of their wages. Others share the numbers with their teams to show them how well they’ve done over a recent financial period. More still do this just because it has a reputation for being par-for-the-course when it comes to motivating people
The truth is that businesses need to make a profit to survive and pay their employees; and employees do need to work towards these metrics to make this happen. The bottom line and other metrics are important to employees too, but that doesn’t mean they will perform at their best for them.
A study called ‘The Influence of Supervisor Bottom-Line Mentality and Employee Bottom-Line Mentality on Leader-Member Exchange and Subsequent Employee Performance’ was recently published in the Human Relations journal. Researchers found that Bottom-Line-Mentality leaders did not support healthy relationships with their employees, the result being that employees would (often unconsciously) withhold their highest-quality work and performance.
The study also - and most interestingly - found that even when employees have as much of a bottom-line mentality as their supervisors, it did not mitigate any loss of performance, but only buffered it. Employees across the board still felt as though their leaders thought money was more important than the health of the people they worked with, the environmental crisis, and basic morality and human rights. The only difference was that bottom-line-mentality employees wanted more in addition to the bottom line instead of in place of it.
Prioritising profits over health, mental health, family, ethics and the environment, and placing too much emphasis on output burns out employees and is detrimental to profits and the overall success or the business in the long term. While it’s important to keep the team informed about where things stand in terms of the numbers, it should be just that; keeping them informed.
Here are a few ways leaders can encourage their teams without needing metrics to measure the bigger picture of success, or indeed, to inspire people.
1. BUILD A CULTURE OF TRUST
At its most basic definition, trust is about safety. One cannot build a sense of trust with their employees if they are being threatened for not achieving a certain output. They should be judged on the quality of their work rather than the quantity, and should also be confident enough in the workplace to ask questions, present new ideas and know that their leaders are ethical. Its benefits for business are more productive teamwork, employees and leaders with the same goals, and increased creativity. It’s up to you as a member of high-level management to foster trust by keeping the workplace safe and open, and trying to follow through with what you say, no exceptions!
2. TAKE FEEDBACK SERIOUSLY
Whether it’s notes from one of your team members or feedback from clients, it’s important for leaders to listen actively and be serious about finding solutions. You don’t want employees to think you’re brushing them aside. This will discourage them from bringing you ideas and new solutions in the future. And someday, one of their ideas could be a massive turning point in your business or department. The same goes for client feedback. Learn to take criticism gracefully and see it as a way to better your products or services. It is also healthy for your team to see you engaging openly and positively with clients.
3. BE FLEXIBLE
Within reason, of course. If it is possible, give employees more flexible hours. This could include a later start time to get their kids to school or to accommodate those who work better later. Let them go to the bank, visit the doctor, donate blood, and more during office hours when they need it. Flexibility also comes in the form of letting them change their computer backgrounds, work in formats and programs they’re comfortable with, and allow phone time and chatting in the office. This shows people that you genuinely care about them and their quality of life as people. They will likely reward your kindness with their best work and company loyalty. If working from home during the COVID-19 pandemic has taught us anything, it’s this!
4. GROW YOUR EMPLOYEES
It’s as simple as asking them about their career goals and keeping an eye open for opportunities for them. One person may want to improve a certain skill. You could look for short or online courses and make this option available to them when you have some spare budget. Another may be really interested in working on a specific kind of project, and you would work towards gaining a client that would bring in that kind of work. Everyone will do their best work when they feel like they’re doing something they’re good at and passionate about.
5. DON’T BE A MANAGER
Be a leader instead! The latest tenet is that managers simply ensure everyone is where they’re supposed to be, doing what they’re supposed to do. A leader, on the other hand, works to create more leaders. This isn’t about getting someone ready to be your successor, but rather inspiring your team to be more than rote employees who live for home time and weekends. They should be excited about the opportunities (that you will help to provide) to add value, lead projects, get creative and problem solve every day, no matter what position they hold.
6. ENCOURAGE ENTREPRENEURIAL SPIRIT
Just because someone has an entrepreneurial spirit, doesn’t mean they’re ready to jet off to start their own rival business. Instead, it represents a set of characteristics that should be encouraged in everyone who has a job, even if they have no desire to have their own company. Actively encourage new ideas as well as personal improvement both at work and in their personal lives. You should also allow them to challenge you, contradict you and push your own skills to their limits. People who possess these characteristics become powerhouses at their work because they learn how to hustle to reach a goal, how to be innovative in smart ways that make sense for the business, and how to be fully committed without overextending themselves. Pretty valuable, right?
7. MAKE DECISIONS QUICKLY
The last thing you want as a leader is for people who look up to you to see you stumble over a decision that has ethical consequences or will negatively impact them in a serious way. Always know where you stand so that you can make informed decisions without having to spend days running the numbers first. And if you do need some time to do this, or know that your decision is going to be an unfavourable one, make sure you can explain your choices in a way that is patient and fair.
The role of a leader or high-level employee is ever-changing, but doing your job and managing people with nothing but metrics in mind is not only old-fashioned but potentially detrimental to the longevity of your business in today’s climate. Focus on the bottom line when you need to, but spend as much of your time and energy building up your team as possible.