As the way we do business evolves faster than ever, leaders need to be prepared. Employees look to their senior executives for confidence, guidance and direction—especially in times of change. But being a leader means nothing unless people choose to follow, and people generally choose to follow those in whom they believe. “It all hinges on the leader’s credibility,” says Lynne Andersson, associate professor of human resource management at the Fox School.
The Power of Perception
Andersson’s previous research started by identifying behaviors that make employees cynical towards their leaders. She identified two key factors in credibility: perceived competence and perceived trustworthiness. Both elements are dependent upon outsiders’ viewpoints—whether or not they believe in the leader’s skills, knowledge, values and dependability.
“These perceptions are extremely important in the digital age,” explains Andersson. With so much information available to be collected and scrutinized, from social networks to artificial intelligence, people may have concerns about who is in control. “Employees want to know that those who are managing them and assessing their performance are competent and trustworthy.”
After having started the research around the question of cynicism, Andersson reversed the point of view. She and her colleagues conducted research studies, gathering feedback from blue- and white-collar workers located all over the country over the course of three years, to identify specific actions that leaders can take to improve credibility with their employees.
Building Credibility, Projecting Competence
Leaders who emphasize the future were seen as the most competent by their employees. “Creating clear plans for future success is different than simply stating a strategic vision or setting performance targets,” Andersson notes. “It involves mapping out, in detail, how the organization will achieve its goals.” Keeping on top of industry trends, predicting upcoming changes and having clear ideas of how to respond to both are other ways for leaders to demonstrate their visions for the future.
Employees value leaders who demonstrate a focus on organizational outcomes but who also attach those outcomes to an individual’s job. “It’s important to convey that an employee’s work affects the whole organization,” Andersson advises. “Employees attribute competence to leaders who can make those connections.”
Competent leaders also look for ways to improve their organization’s operations. “You can consider eliminating unnecessary reporting structures, reducing spending waste, establishing new roles or investing in technology that improves business effectiveness,” Andersson says.
She also advised against putting too much emphasis on credentials. “In our meritocratic world, we love credentials—but people in our study did not equate credentials with competence. Leaders had to prove it through their actions or behaviors, not their resume.”
The most important step to take when trying to project trustworthiness is speaking and acting consistently. “To begin, it means making decisions that aren’t contradictory,” says Andersson. “But it also means behaving in a way that aligns with promises, explicit or unspoken.” Leaders should deeply understand all of their stakeholders’ needs in order to prevent potential conflicts.
Leaders that embody the organization’s vision and values are also regarded as highly trustworthy, according to the research. “Employees want to see consistency between the walk and talk.” Andersson encourages senior executives to be mindful of both their professional and personal values, as employees are watching closely to verify authenticity.
According to the research, employees were more trusting of leaders who valued them. “While you may prioritize your employees in your words, make sure that employees are recognized,” says Andersson. “Show how important your employees through things like rewards and plum assignments.”
Insights for Better Leaders
How can senior executives apply this research on the job? Andersson notes that leaders should be cognizant to two main points. First, the good outweighs the bad—sometimes. “When regarding competence,” says Andersson, “people tend to weigh positive information more heavily than negative information.” This means that one competent action may be a good signal of reliability to a leader’s employees. However, the opposite is true for trustworthiness; one dishonest statement or unethical action can make employees lose faith.
Second, restoring credibility is difficult, but not impossible. “To regain lost credibility, leaders must reestablish positive expectations,” Andersson advises. “This means they must repeatedly engage in trustworthy acts since a single act won’t mean much.” By focusing on the actions outlined by Andersson and her colleagues, leaders can slowly build back that relationship.
Credibility in Action
Actions speak louder than words, and according to Andersson, these are the most important things leaders should do to increase their credibility amongst employees.
What Do Competent Leaders Do?
- Emphasize the future
- Prioritize employees
- Take action and initiative
- Communicate effectively
- Gain knowledge and experience
What Do Trustworthy Leaders Do?
- Communicate and act in a consistent manner
- Protect the organization and employees
- Embody the organization’s vision and values
- Consult with and listen to key stakeholders
- Communicate openly with others
- Value employees
This article is a sneak peek of the next issue of On The Verge, the Fox School’s flagship research magazine. For more stories, visit www.fox.temple.edu/ontheverge.