Slowdown-hit companies are moving from “bossy” leadership style to being “participative” in order to retain talent.
With the economy growing at a mere 4-5%, companies have decided to switch their employee engagement and retention strategies, mainly by changing their leadership styles, a survey of 882 companies by executive search firm, Executive Access, have found.
Post the 2008 meltdown, companies have realised that not having a transparent culture generally leads to employee exodus, according to the survey.
“58% of companies now follow participative leadership, 14% of companies follow autocratic style followed by 15% with bureaucratic style while the remaining follow charismatic and Laissez Faire style,” it adds.
Among sectors, media and services have move towards participatory leadership from autocratic styles.
“Healthcare is still dependent on the autocratic and Laissez-Faire style of leadership, as it is process-driven sector and has a centralised decision-making policy body.” the survey says.
Interestingly, the education sector has undergone a serious change in the past few years, not only in terms of methodology and pedagogy, but also in terms of the culture of education institutes.
“Gone are the days when the head of the institute could dictate terms to the staff. Teachers, professors and all stakeholders are now deeply involved in discussions of how things are to be managed,” said Ronesh Puri, managing director, Executive Access.