Lacking leadership skills stands in the way of high-performing teams
Building high-performance teams remains a priority for organisations in 2024, but concerns loom regarding leadership skills. Only 54% of HR professionals believe their leaders possess the necessary skills to cultivate such teams, with 24% deeming less than a quarter of their leaders are competent to do so. This lack of confidence resonates with 69% of HR decision-makers who directly identify "bad managers" as a pervasive organisational issue.
It’s therefore no surprise that our survey of 1000 employees revealed that while a majority (64%) of employees feel psychologically safe at work, 26% feel neither safe nor unsafe, and a concerning one in ten UK workers feel unsafe at work. Extrapolating to the UK's 20.40 million-strong workforce (UK Labour Market Statistics, House of Commons Library, 2024), this translates to a staggering potential of 2.44 million people grappling with an unsafe work environment. Organisations can no longer afford to ignore this leadership gap if they hope to cultivate resilient and high-performing teams.
The trifecta: EQ, IQ, and CQ for high-performing leadership
The leadership landscape is shifting, and emotional intelligence (EQ) is taking centre stage. Gone are the days when pure intellect (IQ) reigned supreme. Today, HR leaders and employees alike recognise the critical trifecta of EQ, IQ, and CQ (cultural intelligence) in fostering thriving work cultures. According to a resounding 86% of HR decision-makers, these three intelligences are equally important for leaders who want to unlock the full potential of their teams.
Interestingly, the value placed on EQ, IQ and CQ varies across generations. Gen Z believe EQ is the strongest contribution (50%) to building high-performance cultures, while Millennials (37%), Gen X (36%), and Boomers (28%) follow. This trend suggests an evolving understanding of EQ's role in workplace success, with younger generations placing greater emphasis on its importance.
Empathy remains a critical piece of the puzzle
Unfortunately, a potential gap exists between recognising the important role of empathy in leadership and its effective application. Employee survey data reveals that less than half of employees view their managers as highly empathetic. This deficit is evident across various aspects of work life, with only:
of employees do not experience empathy from their managers on personal matters
do not experience empathy in job performance discussions
do not receive empathetic support when things go wrong
do not encounter empathetic guidance during training or managerial issues
This data paints a clear picture: a significant empathy gap exists among leaders, directly impacting employee morale and performance. Organisations must prioritise investing in EQ development for their leadership and management teams to address this challenge.
Mental health and well-being are imperative for business growth
A staggering 90% of HR decision-makers agree that mental health significantly impacts business performance. This acknowledgement highlights a shift in the world of work, with an expectation that organisations will weave mental health and well-being into their workplace culture. Instead of chasing fads, our survey of 1,000 employees revealed their preference for targeted, accessible support, which included access to counselling and mental health support (36%), leadership training on mental health awareness (32%), stress management programmes (27%), and comprehensive health insurance covering mental health (26%). Surprisingly, trendy policies like unlimited paid leave (17%) and designated mental health days (22%) garnered less enthusiasm. These findings point towards a growing recognition from employees who want targeted interventions and accessible resources that empower them to be their professional best in the workplace. The dividends in employee well-being and business performance will be undeniable.
While the past five years have undoubtedly brought challenges, a positive wave of change is sweeping through organisational cultures. A resounding 73% of HR decision-makers report improving company culture since 2019, with nearly half of employees echoing this sentiment. This shift is supported by 46% of employees who view the events of recent years as a catalyst for a better workplace environment.
The journey towards true cultural transformation is ongoing, as 13% of employees still feel their organisations need to improve in valuing diversity, inclusion, and equity. This gap varies significantly across generations, with Gen Z expressing the strongest desire for improvement (17%), followed by Millennials (12%), Gen X (15%), and Baby Boomers (12%). This highlights the ongoing need for tailored efforts to bridge these gaps and ensure all employees feel valued, empowered, and thrive within diverse and inclusive environments.