Are your leaders creating a profitable climate?

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Organizational climate affects how people see the organization and how it feels to work there. This affects factors such as absence rates and staff turnover – which combine to affect the bottom line.

Use this interactive PDF to understand the implications of leadership’s effect on climate, and find out how your leadership style influences climate.

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Are your leaders creating a profitable climate?

  1. 1. Overview Leadership’s effect on climate Global trends Real results Download our guide Are your leaders creating a profitable climate? 55 per cent of the world’s leaders aren’t. A positive climate can improve an organization’s bottom line by up to 30 per cent – and climate is up to 70 per cent determined by leadership. Climate affects how people see the organization and how it feels to work there. This affects factors such as absence rates and staff turnover – which combine to affect the bottom line. T urn to Leadership’s effect on climate to find out how leadership influences climate. T urn to Global trends for insights into the leadership styles in use around the world. T urn to Real results to discover how climate affects performance in real organizations. For more information visit atrium.haygroup.com or email haygroup.atrium@haygroup.com
  2. 2. Overview Leadership’s effect on climate Global trends Real results Download our guide Learn to cultivate the right climate Leaders affect climate through the way they interact with employees: their personal leadership style. Hay Group has identified the six leadership styles capable of the biggest impact on the climate of a team. In organizations with positive climates and high performance, the majority of leaders use a combination of three or more of these leadership styles – usually a mixture of Authoritative, Affiliative, Democratic and Coaching leadership. In organizations where the climate is de-motivating, we found leaders using just one or two styles – mainly Coercive and Pacesetting leadership, which focus on short-term success. For more information visit atrium.haygroup.com or email haygroup.atrium@haygroup.com
  3. 3. Overview Leadership’s effect on climate Global trends Real results Download our guide Keeping a weather eye on the world Hay Group reviewed the styles and climate assessments of over 86,000 leaders worldwide. The charts in the box opposite show the results. In a high performing climate, the team is motivated and focused. In an energizing climate, the team is motivated, but may find goals confusing, unclear or misaligned. In a neutral climate, team members’ efforts are mostly driven by their own values and enthusiasm. Some may perform well; others may do only the minimum required. In a de-motivating climate, the team is discouraged, disengaged and lacks focus. They are likely to be under-performing and are at high risk of turnover. Asia EMEA Latin America Asia has the highest percentage of leaders creating de-motivating climates (66%). Of these 74% tend to rely on just one or two leadership styles. It is common in Asia to adopt a paternalistic style of leadership, a combination of the coercive and affiliative leadership style. But the region’s best leaders have a very broad leadership repertoire combining the authoritative, affiliative and coaching styles to create high performing climates. North America Showing climate Pacific View leadership 66% 14% 1 % 10% 1 De-motivating High performing Neutral Energizing For more information visit atrium.haygroup.com or email haygroup.atrium@haygroup.com
  4. 4. Overview Leadership’s effect on climate Global trends Real results Download our guide Reap the rewards of a high-performing climate Financial services Research and case studies show again and again that a positive climate has significant and measurable effects on business performance. Call centre The effect of leadership styles on climate, and of climate on the bottom line, are not limited to any one industry or sector. From the public to the private sector, from telecoms to health, the evidence continually demonstrates the strong influence of leadership. 26 1/3 % 25 % Health Retail Telecoms In a call centre, teams whose managers created a positive climate outperformed their sales targets by this amount – compared to their peers’ four per cent. The drop in staff turnover in teams with positive climates, compared to their peers. The drop in absence rates in team with positive climates, compared to their peers. For more information visit atrium.haygroup.com or email haygroup.atrium@haygroup.com

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