The Positive Effects of Employee-centered Leadership

A leader with all her employees.

Employee-centered leadership is a mindset that fosters growth. It embraces the growth mindset and encourages independent thought and communication. In addition, it invests in the development of employees. To increase company profits, employee-centered leadership has proven effective. 

Embraces a Growth Mindset

What is the difference between human-centered and traditional leadership? To start with, human-centered leaders are authentic and genuine. They lead by values and principles and ask for feedback from their employees. This type of leadership that former DaVita’s executive CEO, Kent Thiry uses encourages individuals to reveal their authentic selves, promoting collaboration and innovation. This kind of leadership also emphasizes the need for growth and development. Another difference between growth and traditional leadership is the emphasis on results. Growth mindsets are positive, forward-thinking, and value success. They view mistakes as learning opportunities and reward effort rather than failure. These individuals are more likely to embrace audacious goals and use new tools to achieve them. Using a growth mindset in your organization can unearth leaders who otherwise may have gone unnoticed.

Encourages Independent Thought in Employees

Incorporate a culture of independence by encouraging employees to think for themselves. Not only does this foster new ideas, but it also gives everyone in the company a stake in the business’s success. The best ideas usually don’t come from a single visionary at the company’s top. Instead, the more people involved, the better the chance someone will come up with a great idea. Rather than praising employees for thinking for themselves, you should reward them for their innovative ideas and challenging authority. Employees who disagree with the company’s direction should try to prove their superiors wrong. The more people feel appreciated, the more likely they work harder to achieve those goals. By rewarding employees for good work, you will also reinforce their sense of autonomy. Giving them credit for their work will not only support their sense of self-reliance but will also help them understand that they are doing a good job.

Encourages Communication With Employees

Employee-centered leadership involves communicating with employees to demonstrate empathy and understanding rather than making them feel like a nuisance. For example, servant leaders foster an environment where employees don’t feel threatened to share their concerns or ask questions. Instead of dismissing employee complaints, servant leaders seek to solve problems in a fair and beneficial way to all involved. In this way, they create an environment where employees feel valued and can contribute to the company’s success.

Invests in the Growth of Employees

In addition to providing growth opportunities, investing in the growth of employees can boost a company’s bottom line. A happy employee will do more than perform their job; a satisfied employee will share positive experiences with friends and family. They may even recommend the company to friends looking for a job. In addition, positive reviews from satisfied employees may encourage other job seekers to join a company. A company will see increased revenue and profitability by investing in employee growth.

Investing in the growth of employees can lead to a broader pool of talent. If employees are genuinely motivated, they can rise to the top of a company’s hierarchy and become valuable board members or senior managers. A company can fund a part of the cost of an online MBA qualification or even provide financial support for an employee to earn the certification. It is far cheaper to promote from within than to recruit from the outside. And in addition to increasing productivity, investing in employee growth can improve a company’s brand and attract the best new talent.


About Carson Derrow

My name is Carson Derrow I'm an entrepreneur, professional blogger, and marketer from Arkansas. I've been writing for startups and small businesses since 2012. I share the latest business news, tools, resources, and marketing tips to help startups and small businesses to grow their business.