6 Effects of Good Leadership on Employees in Your Company

The definition of leadership can have many interpretations. However, when it comes to business, assuming a leadership role means that how you speak, act, and the decisions you make can have a direct impact on your employees.

Not all business leaders take the helm of their company in the exact same manner, but if you want to understand your role, then you may want to learn how your employees learn from you every day and how positive behaviors can affect them and their relationship to your company.

engaged employees motivation

1. Positive Values Trickle Down

When you take the time to hone positive leadership skills, such as decisiveness, integrity, and honesty, these values can have a trickle-down effect on your employees and encourage them to work harder for you. In other words, when you behave in a positive manner as a leader, your attitude may have a contagious effect on those who work for you.

For example, if you have younger employees who are straight out of college and have little real-life work experience, learning positive values from you can help nurture habits and ideas that will help them mature and become valuable members of your long-term business team. The more positive behaviors they learn by watching you, the more those values might start to reflect on how they treat not only your customers but their co-workers as well.

2. Improved Morale

Employee morale is a hot topic among office managers and business owners today, and while the causes of low morale are often hotly debated, in many cases, it can sometimes be traced back to poor leadership. When a company has an indecisive or dictatorial leader at the helm, it can arouse feelings of apathy or resentment in the employees. Over time, this can lead to infighting, a lower productivity output, and an eventual breakdown of the chain of command.

leadership engaged employees motivation

If you want to improve employee morale, review some of your most common leadership actions. For example, what have you done lately to boost your employees’ mood or made them feel of value? Do you have morale programs in place and an open-door policy? They can make your employees feel comfortable about approaching you with problems.? If not, then you may want to alter the way you view the importance of these actions.

3. Increased Trust

When you lead your employees in a way that fosters feelings of trust, this can improve manager-employee relations and build a stronger company foundation. Trust can be formed in many ways, which include full disclosure to your business teams about the terms and conditions of the deals they are negotiating, being honest about payroll issues, and being discreet about any personal issues that you may be made aware of by individual employees. When you lead by emphasizing the importance of trust, your employees may feel more secure in their jobs and about the kind of person they’re working for.

4. Better Communication

When company leaders have a closed-door policy and do not make an effort to communicate with their employees, this may leave their workers feeling uninformed, uneasy, and tense. Over time, this can cause increased confusion and arguments, along with the breakdown of team morale because they lack the guidance they require.


If you want to make communication an important part of your daily role as leader, there are several ways you can accomplish this. You can look to today’s business leaders, such as Eugene Chrinian, the CEO of Factory Direct Enterprises, LLC and who is well known for creating a positive and supportive workplace for his employees. You can also encourage your employees to come to you with their ideas and concerns more often, or create daily meetings to give them a safe and positive forum to do so.

5. Company Objectives Become Clearer for All

Making your company objectives well know and having a long-term plan that all your employees are privy to can make for a more stable work environment. Shared objectives are more likely to inspire feelings of camaraderie, while being secretive about your objectives and goals may only serve to increase gossip and rumors. This can quickly destroy a company.

To make your company’s objectives clear to all employees, post them clearly or discuss them openly so that each of your employees understands how they fit into your vision. When your workers feel they have a place in your company’s goals and its future, they are much more likely to be happier and more productive.

6. Office Politics Play a Smaller Role

While it is almost impossible to avoid having office drama or politics come into play at one time or another, being a good leader can help keep it to a minimum. Be a good example and downplay the importance of tearing down others or undercutting them in order to get ahead. When your employees know that you view them based on the quality of their work and what they contribute instead of playing favorites, office politics may take a backseat to teamwork and camaraderie.

A company is only as good as its leader’s worldview and ability to guide his or her employees. Clear and honest leadership can mean the difference between the success or failure of your business.

Dragan Sutevski

Posted by Dragan Sutevski

Dragan Sutevski is a founder and CEO of Sutevski Consulting, creating business excellence through innovative thinking. Get more from Dragan on Twitter. Contact Dragan