Flexible leadership increases retention

Flexibility sometimes feels impossible. With all the things your team members have on their plates, you might look at everything and think there’s no room for flexibility at all. You get caught in a spiral where you find yourself unable to move deadlines, denying requests for time off or hybrid work, or refusing to change processes that aren’t working for your team. It’s not that you’re trying to be an uncompromising leader, it’s just that you see what needs to be done based on everything on your plate.

However, evidence shows us that flexibility is not just possible, but often beneficial, no matter the situation.

Employee engagement and retention

One of the most direct returns on flexibility in leadership is its impact on employee engagement and retention. Leaders who are flexible and open to accommodating the needs of their teams, whether by adjusting schedules, being adaptable on approaches to tasks, or allowing for remote or hybrid work arrangements, are the most effective at keeping their employees actively engaged with their work.

A Gallup analysis covering 256 organizations across 96 countries in 54 industries conclusively found that organizations in the top quartile of employee engagement outperformed those in the bottom quartile by a massive margin. These organizations boasted:

• 23% higher profitability

• 18% higher sales

• 81% lower absenteeism

• 64% greater safety

Strengthening employee engagement will have irreplicable benefits for your company’s bottom line.

Employee productivity

Sticking to rigid, one-size-fits-all approaches with employees, without taking their unique needs and ideas into account, will lead to frustration, stress and, ultimately, inefficiency. An employee who isn’t being listened to isn’t having their needs met, isn’t being treated with dignity and isn’t as productive as they can be.

Some ways you can put flexibility into action (understanding that winter events may make these impossible) and make your people more productive include:

• Offer flexible hours to enable employees to work when they will use their time most effectively

• Be adaptable on processes and willing to change them when employees find a more efficient or effective way of doing something

• Allow your employees to take time off when they feel burnt out and unable to complete their work

• Be open to feedback on your leadership to understand how you can better adapt to their needs

Each of these will also help you create a strong level of psychological safety in your team, which will allow them to make more innovative, effective and creative decisions to drive value.

Work-life balance

Finally, flexibility in leadership will help employees experience a healthy work-life balance, which is one of the most in-demand factors of employment in recent years. Over half of the Gen Z employees who quit their jobs in 2022 reported a lack of work-life balance and flexibility as their reason for leaving.

For many employees, work-life balance has become non-negotiable. They need to feel able to respond to things in their lives without putting themselves at risk in their work. So, if an employee needs to pick up their kid from school or wants to build some time with their family into their schedule, do your absolute best to be accommodating. It will go a long way toward keeping your talent around long term.

The bottom line

Flexible leaders help create a supportive environment where everyone can thrive and create the most value they can for the company. Flexibility doesn’t mean lack of structure. It means being willing and able to pivot when new information or circumstances arise and accommodating people as necessary. Flexible leaders will see a significant return on their investment and forward the bottom line of their company through greater engagement, greater productivity and a healthier work-life balance among employees.

Joe Kiedinger is founder and chief executive officer of Dignify. Contact Joe at joek@dignify.com.