Newest findings in research show the impact of good leadership. We are happy to help you finding these people. Find out how big the impact is in our blog post.
Does Leadership matter?
As recent studies suggest leadership might be as well suited for motivating employees, as a financial incentive. In the public paper series of the UBS Center UBS International Center of Economics in Society, University of Zurich (UBS Center Public Paper #3), Roberto Weber explores the economical value of effective leadership.
One of the answers is that effective leadership matters. The studies clearly show, that motivation by money (red line) has a clear impact on the effort exerted by workers. The more surprising finding the study suggests is that leadership (yellow-green line) has an equal impact on the workers effort in work. The biggest difference in between the the two motivations is, that the effect of more pay is fading out quickly and has a minor long term effect. Good Leadership trough motivations by speeches does not fade out and keeps the effort of workers high. Therefore good leadership matters or how it is stated by Prof. Weber: „Effective leaders recognize the power of words. The words a leader uses, and how they are delivered, can greatly affect the extent to which workers exert effort in pursuit of a common goal. In many instances, words may have a stronger effect than financial incentives.“ (Weber, 2015)
What does this implicate for hiring?
This shows clearly how important it is to have the right talent and persons in the right positions. As this starts by hiring the ideal candidates, we at softfactors are happy to help you do so. If you are using our software, you can select candidates more efficiently and more precisely, that fit your positions.
Source: Weber, Roberto, PhD; UBS Center Public Paper #3: The Economics of Effective Leadership; No. 3, June 2015, UBS International Center of Economics in Society, University of Zurich.