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Leadership has always been important for organizations and brands to thrive. It is not surprising, then, that the focus on leadership, leadership qualities, and leadership traits has grown substantially in the last several years. The reasons for this growth stem from several sources.
First, the workplace generations are changing quickly, and, thus, the way leaders are expected to interact, behave, and perform is shifting. Beginning in 2011, and lasting through 2029, every single day, there will be an average of 10,000 people from the Baby Boom generation turning 65 years old.1 At the same time, organizations are grappling with more generations in the workplace (and as employees) than at other times in history. Currently, millennials make up 35% of the working population and represent the largest generation in the U.S. labor force.2 A minimal amount (2%) of the labor force comes from the silent or greatest generation (some scholars refer to these as the âTraditionalistsâ), 25% are Boomers, 33% are Gen Ex, and 5% are post-millennials (those born after 1996).3 As a result of this diversification of the labor force, one challenge organizations have faced with is understanding the motivations that each generation has. For example, while loyalty to the employer and respect are critical values to the Traditionalists, on the other hand, Boomers tend to be highly motivated by goals and rewards (like promotions) and are not highly focused on consistent feedback regarding their performance.4 Millennials (who tend to be the first tech-focused generation) and Gen Z workers have a higher focus on collaboration, communication, and feedback.5 Contrasting to previous generational workers, the factors that make Millennials most excited to apply for a job are flexible work schedules and paid time off and Gen Z looks for a âfun work environmentâ and a flexible work schedule.6 While straightforward and direct communication has always been valued in the workplace, Millennials had an increased desire for consistent and regular feedback. This only grew with Gen Z, with 60% of Gen Z wanting multiple check-ins during the week and 40% wanting âinteraction with their boss daily or several times each day.â7 Generational differences, therefore, can and will influence how leaders communicate with their teams.
A second factor that seems to have contributed to the growth in focus on leadership centers on the approach organizations are taking to address the generational implications in the workplace. With such a high population of the workforce (Traditionalists and Boomers) on the cusp of retiring, there are increasing leadership needs in organizations. However, one study shows that only 25% of organizations had one out of ten critical roles set up for transition with an identified (willing and capable) successor.8 This same study found that the leadership development process of 36% of organizations are either poor or below average, with a significant majority (71%) of employees feeling that their leaders were not equipped to lead the organization currently.9 Interestingly, another study found that 63% of millennials felt that they were not having their leadership skills developed in their organizations,10 an interesting dynamic given that they make up the largest generation currently in the workforce. Identifying these current leadership gaps and the increasing need for leadership development, organizations have started to pivot and are investing significantly in employee development and training. In the U.S. alone, organizations invest billions of dollars in running these leadership programs annually. As organizations developed these programs to recruit, train, and retain their workforce, another factor has grown in importance that directly influences these processes: diversity and inclusion in organizational leadership.
Without a doubt, the increased value, need, and importance of diversity and inclusion in the workplace are a third influence for the increased interest in what leadership means in modern organizations. Deloitteâs recent study found that:
Eighty percent of the respondents to this yearâs global survey told us they think that 21st-century leadership has unique and new requirements that are important or very important to their organizationâs success. Topics such as inclusion, fairness, social responsibility, understanding the role of automation, and leading in a network were not part of the leadership manifesto a decade ago.11
Thus, perceptions about the make-up of an organizationâs leadership and the process by which that organization intentionally cultivates diverse leadership are critical. McKinsey and Company launched a report in 2015 called âWhy Diversity Matters,â specifically to make the business case for diversity. Beyond being the right thing to do and beyond being reflective of the evolving workforce and demographics globally, having a diverse and inclusive work-force brings incredible benefits to an organizationâs bottom line. For example, McKinsey and Company found that organizations that were leading âfor gender diversity on executive teams were 21% more likely to outperform on profitability and 27% more likely to have superior value creation.â12 Additionally, companies that focused on ethnic/cultural diversity were â33% more likely to have industry-leading profitability.â13 Out of those organizations that scored low in both the gender and ethnic/culturally diverse categories, the study found that not only were they not leaders in the industry but they were also lagging behind competitors. Thus, the business case for diversity in leadership is significant at all levels. Due to this, the ways an organization recruits, trains, and retains employees are influenced by diversity and inclusion.
The fourth and final reason this text will examine for leadership growth stems from communication, particularly digital communication practices. With the rise of technology (which will be explored more from a historical context in Chapter 2), organizations have adopted various tools designed to keep employees informed, connected, and equipped to do their jobs. These tools include communication tools like email, an organizationâs internal employee newsletters (often delivered digitally), internal websites or Intranets for employees, and even dedicated apps for employees of organizations. These tools, however, are not always having the impact that leaders desire. For example, a recent study found that only about half of the employees were satisfied or very satisfied with the internal communication efforts of their organization and 34% were somewhat or very dissatisfied.14 This level of dissatisfaction seemed to stem from an overload of email communication, lack of having enough staff for all the needs that must be addressed, and lack of employee engagement. As workplaces grapple with the growth of communication platforms and needs, Ragan15 found that priorities for the future included (1) cutting down excess or non-essential communication; (2) making other platforms (such as non-email) an option for regular communication; and (3) finding ways to push (or automatically publish) content to employees versus expecting the employees to log in and access information regularly without a reminder/alert.
While all this may appear to simply be âorganizational communicationâ or H.R. related, the reality is that the way leaders communicate, and how they guide their organizations to communicate on a variety of channels, influences both employees (internal communications) and the public (external communication). Research has found that that communication from leaders is critical because it directly connects to employee engagement. For example, Gallup shared that globally there are nearly 85% of employees who are not engaged (or worse, actively disengaged) with their work.16 Why does this matter? Employee disengagement negatively changes an organizationâs culture, creativity, and productivity and ultimately damages the entire team. Gallup defined a ânot engagedâ employee as those who are âare psychologically unattached to their work and company. Because their engagement needs are not being fully met, theyâre putting timeâbut not energy or passionâinto their work.â17 Addi tionally, an âactively disengagedâ employee is not simply unhappy or neutral. Instead, âthey are resentful that their needs arenât being met and are acting out their unhappiness. Every day, these workers potentially undermine what their engaged coworkers accomplish.â18 When organizations develop an engaged workplaceâwhere employees understand their role, are passionate about their role, and are dedicated to the job at handâleaders position the workplace to be a competitive organization in their sector. Moreover, 70% of the variance for whether someone is engaged with their team comes down to their manager.19 Thus, helping develop leaders, equipping them, and teaching them how to interact and engage is critical to both a successful organization and an individualâs success as a leader.
External communication by leaders is also imperative for the future of organizations. Increasingly, leaders are expected to be active in places like social mediaâwith people perceiving those CEOs who are active as: (1) contributing to a positive reputation for the company; (2) being more connected to the stake-holders (like consumers/donors/investors); (3) more accessible to employees; (4) more clear about organizational strategy and plans; and (5) ultimately building the competitive differential of the organization in a credible way.20 One interesting dimension to this, however, is whether these...
