Leadership and Employee Engagement: Why it matter

Last updated: 2022-04-214 min read time
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It’s no secret that leadership is a crucial part of a company’s business. When great managers engage their teams, employees perform better and produce greater results. Unfortunately, however, not every team is led by a great manager. So, what effect does this have on employee engagement and performance? Well, according to Gallup findings, managers account for at least 70% of the variance in employee engagement scores across business units. Just think about the impact of this variance has on your company.

Retaining Talent

Leadership has a strong connection not only to job satisfaction, employee engagement and productivity but also employee retention and even attracting talent. Josefine Söderqvist, Director of Human Resources of Benify, says, “Studies show that leadership is the number one reason people choose an employer, stay with an employer, or, conversely, leave an employer. Therefore, it´s very important for us to achieve Benify´s vision and reach our goal of having employees wanting to stay and contribute to Benify. And leadership is key to that.”

Strong leadership is one of the keys to employee retention, and retaining your talent gives you a greater chance of reaching your company’s business goals and vision. This is where having a leadership strategy is vital.

Leading By Design

Last November, Benify launched its Leadership Program together with “Leadership Guru” Pär Lager. Pär has been working with leadership since 1988 and has been a CEO for several companies including the prestigious Berghs School of Communication in Stockholm, which has been appointed best school in the world seven times – the first time in 2010 when Pär had been CEO for 3 years.

Benify’s Leadership Program is a multiple-step training program consisting of three steps - a digital learning program followed by two in-person days of action-based learning. Additionally, leaders are given several assignments, one of which needs to be completed together with a “wing-mate” (aka another manager). During the latter assignment, leaders will discuss their personal leadership plan and have the opportunity to reflect and discuss how they can improve individually as leaders.

leadership-benifyBy designing its leadership program this way, Benify ensures all its managers receive the same knowledge to build on and can support and coach one another in their leadership challenges.

Josefine underlines the importance of giving managers the tools to succeed, rather than ´here is your job – do it´ without any guidance. “That is an important part concerning the wellbeing of our employees and job satisfaction.”

Being a Great Leader

Managers are role models for the company’s culture. This means working according to and living the company’s core values and encouraging everyone else to do the same. To do this, a manager first needs to have a good understanding of the company’s history, vision, business model and business strategies to make the right decisions based on both the customers’ needs as well as the company’s needs.

Managers are, of course, responsible for their team’s performance and results. Managers create the foundation and conditions that enable employees to be engaged in their work and thrive by guiding and supporting them towards the company’s goals.

Opportunity is Everything

To become a leader, of course, opportunity is everything, which is why Benify focuses on promoting people internally into leadership positions. The company’s leadership program makes sure they develop their employees’ potential through greater use of knowledge and tools.

Elin Öhrn, Head of Client Relations at Benify, participated in last year’s Leadership Program and said the program gave her a great foundation to build further knowledge. “We had an exercise where we created a personal development plan, which makes it easier for me to reflect on what I´ve learned and how to work with it practically. The program gave me lots of inspiration about self-leadership and how I can work with my own circle of influence. That’s something I’ll use both at work and in my private life.”