Global firms turn to leadership development for competitive edge

As the dynamics of the global job market continue to shift, organizations are paying closer attention to how their operational performance is affected by personnel demands. Company productivity – long considered a matter of complex data and analytics – is increasingly being viewed as a human resources concern, particularly in regards to leadership development.

With high unemployment rates and an increasingly demanding employer market, engagement levels among workers fortunate enough to have jobs are beginning to suffer. But experts maintain that strong leaders can stir satisfaction levels just as much as a bonus or added benefit.

Consider a recent survey by consulting firm Zenger Folkman. Researchers examined results from more than 150,000 employees across the globe and concluded that effective company leadership is key to driving job satisfaction.

“If you ask the average worker what would make them happy or improve their commitment at work, they will probably suggest reducing their workload or taking away challenging assignments,” said Dr. Joe Folkman, president of Zenger Folkman. “However, there is a very big difference between what people think would make them happy and committed and what actually increases employee satisfaction and engagement.”

The report identified leadership traits that had the strongest link to highly satisfied and engaged employees, then it noted that four of the top six traits focused on a leader's ability to inspire workers to achieve difficult goals. Effective leaders are able to (1) inspire higher levels of effort, (2) energize workers to achieve results, (3) foster an atmosphere of personal development and (4) encourage employees to seek out goals that go beyond what they deemed possible.

Harvard management professor Bill George goes even further. In a recent article for the Harvard Business Review, George argues that, in order to remain competitive, the U.S. needs to balance its recent loss of productive might with a supply of global leaders. This trend is most evident in leadership development initiatives from major corporations, such as Cargill, ExxonMobil, 3M and IBM.

“[These companies] insist their line executives have numerous assignments running overseas operations to ensure they understand their global businesses,” George explained. “They also conduct intensive development programs for global leaders through in-house training programs.”