When appointing leaders, whether through recruitment or promotion, you will most likely spend time developing a ‘wish list’ of core competencies for the role. After all, it is widely understood that strong leaders can significantly impact a business. But does this list match and prioritise the traits that your employees value?

Employees stay for good leaders and leave when they don’t meet their expectations. So, what do Australian employees value most in their leaders? We look at five key leadership behaviours that help to facilitate employee retention.

1.  Authenticity

Authentic leadership is demonstrated by leaders who have high standards of integrity, take responsibility for their actions, and make decisions based on principle rather than short-term success. While this is not a new concept, the post-pandemic workforce has less tolerance for inauthentic leaders, who can negatively impact employee attraction, engagement, and retention.

Employees appreciate leaders who are consistent in their values and behaviours and are perceived as fair and balanced. Leaders who cultivate self-awareness, are disciplined, focused on purpose and committed to improving themselves are likelier to inspire employees. Employees want leaders who are true to themselves and transparent in their actions and words.

The rewards for selecting authentic leaders can be significant. Employees with authentic leaders will talk about them to their friends and family and tend to be more invested in their work and organisation. However, employees working with inauthentic leaders often speak the loudest. It is, therefore, worthwhile prioritising genuine authenticity on your next leader capability ‘wish list.’

2.  Emotional intelligence

According to the World Economic Forum's Future of Jobs 2023 report, many of the qualities associated with emotional intelligence, such as resilience, curiosity and lifelong learning, motivation, and self-awareness, are highly prized by organisations and employees alike, and this won’t change in the next few years.

Emotional intelligence (EQ) is generally a quality of authentic leaders and is by no means a new concept. In fact, Daniel Goleman introduced organisations and their leaders to EQ over 30 years ago. Leaders with emotional intelligence can create a supportive and inclusive work environment where employees feel valued and respected. They are skilled at recognising and managing their own emotions, which helps them stay calm and composed during challenging situations. By demonstrating emotional intelligence, leaders can effectively motivate and inspire their teams, leading to improved performance and productivity.

There are numerous pre-employment psychometric tests that can assess emotional intelligence when selecting leaders. Yet, it is often downgraded in the selection process over technical capabilities. This can be problematic if gaps are not addressed through training and development or reworking position descriptions.

3.  Committed to diversity and inclusion

Companies prioritising diversity and inclusion are often considered more attractive to employees. This means employers can attract top talent from a broader pool of candidates. Moreover, when employees feel valued and included, they are more likely to perform better and stay with the company, reducing turnover and associated costs. 

Research suggests employees in Australia value leaders who are committed to diversity and inclusion. In a Deloitte study, thirty-seven per cent of respondents said they would leave an organisation for a more inclusive one, and this increased to fifty per cent for millennials. Employees want leaders who actively promote and support workplace diversity and create an inclusive environment where everyone feels valued and respected.

Leaders who prioritise diversity and inclusion understand the importance of diverse perspectives and experiences. They actively seek to build diverse teams and ensure equal opportunities for all employees, unlocking their teams' full potential and driving innovation and creativity. Whether your organisation is known for diversity and inclusion or looking to improve, proven commitment is an important factor in selecting leaders.

4.  Transparency and communication.

Many Australian employees value leaders who prioritise transparency and effective communication, ultimately preferring a clear and direct approach. They want open and honest leaders who share information and keep employees informed about important decisions and changes.

A recent study in Belgium found that leaders with a transparent communication style were able to create a climate of psychological safety in their teams to enable employees to voice their opinions, whether that be sharing ideas, questioning decisions, or admitting mistakes. However, the study stipulated that employee self-esteem matters; transparent leaders were only able to make employees feel safe if the employees had secure self-esteem.

Effective, transparent leaders create a more trusting culture, which is essential for providing a safe work environment. In Australia, all workplaces have an obligation to minimise health and safety risks by eliminating or reducing as much as is practicable health and safety standards, including psychosocial hazards. Effective communication is crucial for building strong relationships and fostering an environment where everyone feels safe to speak up and contribute.

5.  Prioritise employee well-being

Employees have higher expectations of leaders regarding wellbeing than they did even five years ago for two reasons: a generational shift and having lived through a pandemic. There is an expectation that leaders will genuinely care about their physical and mental health, providing a supportive work environment that promotes work-life balance and overall well-being.

In the previous 12 months alone, one in five Australians experienced a mental disorder, according to the Australian Institute of Health and Welfare, and 17 per cent had an anxiety disorder. Increasingly, leaders understand the prevalence and impact of mental illness and the complexities of health and wellbeing in the workplace. However, there is a significant difference between awareness and effective leadership.

Empathetic leaders foster a culture of self-care and stress management and encourage open conversations about mental health. By prioritising employee well-being, leaders can create a positive and productive work environment where employees feel valued and motivated to perform at their best.

Bayside Group has a highly experienced Senior Appointments team that can assist you in recruiting leaders for your organisation. Let us know about your talent requirements, or contact us today.