Top 6 Leadership Skills To Successfully Run a Business

By Brynne Adamson

One of the biggest reasons why people leave their jobs is because they don't like their management or leaders — specifically how their manager treats employees. If an employee isn't satisfied with how they're being treated, they're going to quit.

High turnover at a company can cost money, employee morale and time that a company desperately needs. Did you know that the annual turnover in the hospitality industry is nearly 80%?

That's why we made a list of the top six skills each leader should have to ensure they're treating their employees the best they can.

1. Positive Attitude

When things go wrong, people look to their leaders to see how they react. If a leader reacts negatively or immaturely, a leader is going to be less trusted to be able to get them through a crisis later on. That's why leaders with positive attitudes are important. Leaders with a positive attitude can also help keep employees motivated.

According to a 2018 study published by Panteion University, being optimistic is the third most important essential leadership skill to have during a crisis.

2. Interpersonal Communication

Having a good relationship with your employees is a huge factor in the daily success of the company. If employees feel like you don't care about their well-being, they will be less likely to care about projects you assign them or to help the company grow.

According to a 2016 Pew Research Center survey, "Some 45% of workers say it is ‘extremely important' that they have good communications skills in order to do their job, and 44% say this is ‘very important.'"

Another aspect of communication is conveying information accurately and honestly to your employees. Make changes in the company clear and easily understood. Have regular meetings, so you can get feedback from your employees, and so you can give them updates on how the company is doing as a whole.

"A leader will need to ensure that information and data is collected and made available for an organization," Clemson University Dean of Libraries Maggie Farrel said in her 2017 study. "The social connections within an organization encourage personnel to share expertise, insights and past experiences to inform decision making."

3. Open Mindedness

In a 2020 study published by the British Education Research Association, American adolescents conveyed open mindedness using three aspects: a deep search for ideas (looking for new ways to do old things), use of empathy (to look at where an idea is coming from mentally and emotionally) and pluralistic thinking (the understanding that others think differently).

Essentially, the teenagers were willing to look at others' ideas and deem them as good as their own. These aspects would eventually help them be mature critical thinkers. So, a good leader will use the three aspects of open mindedness to become a better thinker and figurehead for the company.

Constantly ask your employees for new ways to improve both yourself and your company. Try to understand where their ideas are coming from and why they want to implement the idea. Be willing to overlook your own biases to see what changes could be made for the good of the company. These key aspects of open mindedness can help a company grow and develop in new ways.

4. Critical Thinking

Leaders who critically think can help a company grow and improve because they're choosing the most effective solutions to problems. They think through solutions logically and determine the best route to choose based on research and trends. Leaders with this skill are also typically independent, which means they don't need to be watched over by their employees or partners.

According to a 2020 survey published by the Pew Research Center, critical thinking had an importance level of 3.53 out of 5 from the Occupational Information Network, with five being "extremely important" and one being "not important."

5. Team-oriented

Being team-oriented means you focus more on the team and its members rather than yourself. This means you care about what each member is working on and saying. You also care about being ready to help if the team needs it and taking responsibility when you do something wrong.

For example, when a leader takes charge of a project, they should actively listen to what their team members are saying about the project and then adjust the project to meet the team's needs. Once the team has started the project, the leader should provide help where needed without overstepping boundaries.

In a 2016 study published by the American Accounting Association, teams of auditors were "more willing to speak up when they viewed their leader as team-oriented (i.e., emphasizing team success as opposed to the leader's own personal advancement)." How the auditors' messages would be received by their leader also influenced if they would speak up or not.

Another 2018 study, published by a journal called "Engaged Leadership," found that an effective leader has "authentic and engaged interactions with others." The author also found that an engaged leader uses "engaged visionary leadership (having clear goals or a strategic plan) at the team and organizational level" to allow a team to produce expanded results.

6. Mentoring

Mentor skills are necessary because employees need a trustworthy, respectable mentor to help them further their own careers. A good mentor will be ready to listen and provide helpful feedback to an employee. Leaders should also give employees opportunities to grow and learn. This encouragement could help employees to maximize their potential in the workplace.

According to a 2018 article published by the Harvard Business Review, "When you have a manager who cares about your happiness and your success, your career and your life, you end up with a better job, and it's hard to imagine working anywhere else."

Mentoring leaders will also know to direct an employee to a different mentor if the leader's knowledge in an area isn't as relevant or strong as someone else's.

Ideally, you'd want to suggest a mentor in the same company or building because they're easier for the employee to access. A 2016 study published by the International Journal for Professional Educators suggested something similar for students looking for mentorship from teachers.

Let's take a look at the six skills in review.

In Conclusion

Here's a quick summary of the six essential skills a successful leader needs:

1. A positive attitude
2. Interpersonal communication
3. Open mindedness
4. Critical thinking
5. Team-oriented
6. Mentorship

By having these six skills, you can become a leader your employees will feel comfortable around and look to for help.

Sources

Farrell, M. (2017). "Leadership Reflections: Leadership Skills for Knowledge
Management." Journal of Library Administration.

Goler, L.; Gale, J.; Harrington, B.; Grant, A. (2018). "Why People Really Quit Their Jobs."
Harvard Business Review.

Iordanoglou, D. (2018). "Future Trends in Leadership Development Practices and the
Crucial Leadership Skills." Panteion University.

Kochhar, R. (2020). "New, emerging jobs and the green economy are boosting demand for
analytical skills." Pew Research Center.

Lozinak, K. (2016). "Mentor Matching Does Matter." International Journal for Professional
Educators.

Metz, S. E.; Baelen, R. N.; Yu, A. (2020). "Actively open‐minded thinking in American
adolescents." British Educational Research Association.

Nelson, M. W.; Proell, C. A.; Randel, A. E. (2016). "Team-Oriented Leadership and Auditors'
Willingness to Raise Audit Issues." American Accounting Association.

Pew Research Center. (2016). "What skills and training Americans say they need to compete in
today's economy."

Worley, J. A. (2018). "Visionary Leadership in a Team-Oriented Setting." Engaged Leadership.

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