New study from Potential Project reveals the leadership qualities that can improve employee job satisfaction by 86%

The study of 2,000+ leaders found that positive leadership qualities can also help increase employee job performance by 20% and commitment to an organization by 61%

Potential Project, a global research, leadership development, and consulting firm, has revealed the first of six installments of The Human Leader study, which provides analysis and insight into how company leaders can improve employee productivity and satisfaction in their work environments during the COVID-19 pandemic.

Pandemic-era stresses have contributed to what many are dubbing "The Great Resignation", with more than 4 million individuals in the U.S. resigning from their jobs in April 2021 alone, and 74% of employees expressing at least some burnout in their current jobs. Growing dissatisfaction with the workplace has also led to a record-high number of unfilled positions, with many employers struggling to attract top talent.

Company engagement has been shown to be the biggest deciding factor for employees evaluating whether to stay with their current employer. In Potential Project's The Human Leader study, the company partnered with academic researchers at Harvard Business School, Columbia Business School, U.C. Berkeley, the University of Toronto, and the University of Amsterdam School of Business to analyze critical attributes that constitute a new model of leadership, including:

  • Wisdom: The courage to be transparent with others and to do what needs to be done, even when it is uncomfortable.
  • Compassion: Care and empathy for another person, combined with an intention to support and help.

The survey, which included more than 2,000 participants across junior through senior levels from more than one dozen industries, found that employee job satisfaction increased by 86%, job performance increased by 20%, and burnout improved by 64% when company leaders leveraged these qualities.

"Today, more than ever before, employees are seeking jobs that provide both meaning and well-being. Coming out of the global pandemic, companies cannot afford to neglect the mental and emotional health of their workforce, and business leaders are challenged to maintain productivity while providing the care and support for their teams to thrive," said Rasmus Hougaard, CEO of Potential Project.

Potential Project's North American Director Jacqueline Carter added, "Our research finds that in this new era, the strongest leaders are those who manage through wisdom and compassion, bringing a sense of humanity to the workplace that helps employees feel like their best, full selves."

Expanded findings from this study form the basis of a new book Compassionate Leadership: How to Do Hard Things in a Human Way. Co-authored by Hougaard and Carter, the book highlights ways business leaders can demonstrate compassion in the workplace, and the impact this can have on engagement and morale. The book will be published on December 14, 2021, by the Harvard Business Review Press and is now available for pre-order.

For more information on Potential Project, visit our website or follow us on LinkedIn.

About Potential Project

Potential Project is a global research, leadership development and consulting firm that partners with organizations to uncover the power of the mind - how it is wired and how to rewire it for new behaviors and different outcomes. Potential Project is present in 28 countries with a network of 200 consultants and facilitators, and serves hundreds of forward-thinking companies like IKEA, Unilever, Cisco, LEGO and Accenture.

Contact: Paula Kelley, Global Marketing Director: paula.kelley@potentialproject.com

Source: Potential Project