5 minute read 2 Mar 2022

Transformative leadership as an answer to the future of work challenges

By EY Belgium

Multidisciplinary professional services organization

5 minute read 2 Mar 2022

Closing the trust gap when reimagining the workplace gives your organization a competitive advantage.

In brief:

  • When reimagining the workplace, one must consider that employers and employees have different priorities.
  • The increased complexities that come along with the new way of working cause an expanded need for leadership capabilities.
  • Trust is a key element of transformative leadership.

As we all experienced, time can change radically fast, impacting both businesses and the people working for them. Trends such as the big resignation and the fast-changing environment, have an extensive impact on the global workforce. The biggest challenges entail the reduced connection with and between employees, the decreased employee engagement, and the increased employee turnover. When reimagining the workplace, one must consider that employers and employees have different priorities and that the balancing act between collective goals and individual needs is more important than ever. However, the future of work does bring great opportunities for all of us if we are willing to change our leadership approach. Organizations with leaders that are prepared to navigate this transformative time will outpace the rest.

Let it be clear: to be future-fit, organizations need to go beyond investing in new office spaces and technology. Real behavioral changes are needed to make the future of work a success. Leaders tend to believe that only when their employees are at the office, they know what their employees are doing. Consequently, employers have the need to control. But installing measures to control employees is not the answer to the future of work challenges. In addition, the foundational leadership skills still matter but are no longer sufficient. Some of them need to be reconsidered for today’s work environment and some new capabilities emerge on top of those original skillset. Future-fit leaders need to motivate, inspire, and coach their people. But it is equally important to be empathic and connect both remotely and at the office. These elements define being a transformative leader, a leader who can be the answer to the future of work challenges. Being a transformative leader does not only bring out the best in themself, but brings out the best in others and in the team first. Moreover, transformative leaders are facilitators who need to evolve towards empowering, inspiring, and engaging individuals.

Trust as the secret ingredient of transformative leadership

The increased complexities that come along with the new way of working cause an expanded need for leadership capabilities. Since we believe that transformative leadership is the answer to the future of work challenges, companywide trust is a necessary condition to be able to turn challenges into opportunities. Trust is a complex construct that potentially has a lot of positive outcomes for the workforce on different levels. Due to the current future of work challenges, it can be a key element and as such be used as a competitive advantage. Let’s zoom in on three different levels. 

  • Organizational level

    There is much more organizational alignment if employees trust their employer. If that is the case, they will believe in the purpose of the company and focus on the organizational goals instead of their individual interests. Besides, they will be more loyal to the company and therefore turnover will decrease. Another positive outcome is that employees will be less resistant to change when trust is in place, so a company will be better prepared to survive in transformative times.

  • Team level

    If team members trust each other, the connection is deeper and great teamwork and collaboration will be in place. There will be open communication, ideas will be shared, and they will enhance creativity and innovation in each other. Next to clear goals and responsibilities, trust is the third pillar of high performing teams. These teams will feel empowered to autonomously work together, are united in purpose, and win together. Trust is needed to reach sustainable results and to motivate employees to stick to the same team.

  • Individual level

    When they feel trusted, employees work more efficiently, are more productive, and more engaged. Employees who trust their employers, experience less stress and therefore the chances of developing a burnout will reduce. Between leaders and employees, trust appears as a two-way street. If this two-way street is in place, employees will feel empowered to make their own decisions and are confident to turn them into a success.

Closing the trust gap when reimagining the workplace

To achieve the desired outcomes on the three different levels and tackle the future of work challenges, certain actions can be taken. The first strategy to apply, is a people-centered approach that puts people at the heart of the business. When reimagining the workplace, it is important to empower employees by focusing on the employee experience. Putting well-being on top of the agenda and striving towards a truly inclusive environment should be the goal.

The second strategy to apply, is creating a healthy work culture, which is the basis where trust can flourish. This cultural journey should be a continuous effort and should be directed at including trust-related values in the core company purpose. Depending on how the company can be best characterized, ‘transparency’, ‘openness’, and ‘honesty’ are values that could clearly show both internally and externally what the company stands for. Identifying such core values and linking it to specific behaviors, will create a trustful environment.

Thirdly, perceiving everyone in the company as a leader is another very concrete strategy to build trust. Employees need to feel trusted and empowered to self-manage. In order to give guidance, a purpose is desired. Every employee should be inspired by that purpose and should clearly know what their contribution is to the organization. Purpose will also bring employees closer to a truly inclusive environment, where solutions and a sense of belonging can be found.

The fourth and final strategy is to lead by example. In order to build trust, leading by example is key. It is important that leaders lead in a purposeful and authentic way. They should build relationships by doing the right thing, should be consistent and should dare to speak up about difficulties. Furthermore, leaders need to be approachable, available and at the same time leave space for employees to autonomously make their own decisions. In terms of communication, it implies encouraging colleagues to have a voice, communicating important information transparently, fostering peer-to-peer communication, enabling colleagues to communicate with each other, and ensuring connection between them.

Putting the pieces of the puzzle together

In the future of work, it will become even more important to put people at the heart of the company. To make sure people are put first, evolution towards transformative leadership is needed. Trust is a key element to make this transformation possible. The ultimate purpose of transformative leadership is to make leadership a participatory process of creative collaboration with mutual benefit, where high performing teams are the standard. By implementing transformative leadership, trust can be built on an individual, team, and organizational level. Becoming an organization with transformative leaders takes time, but will contribute to building a better working world.

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Summary

When reimagining the workplace, one must consider that employers and employees have different priorities and that the balancing act between collective goals and individual needs is more important than ever. However, the future of work does bring great opportunities for all of us if we are willing to change our leadership approach. Organizations with leaders that are prepared to navigate this transformative time and put trust at the core of their organization will outpace the rest.

About this article

By EY Belgium

Multidisciplinary professional services organization