Today most leaders, acknowledge that a charismatic leader appears to effortlessly attract loyal and supportive ‘followship’. Charismatic leaders attract more publicity and more attention from outside groups as well as exerting a strong (albeit invisible) bond with their organisation’s workforce. Numerous studies and many different credible research sources* show that Charismatic leaders, outperform their non-charismatic peers by an average of 60%.
There is a proven link between organisational double-digit growth and high engagement levels. A recent Hay Group Insight Report that examined engagement within 1,610 organisations concluded that over the past few years employee engagement levels across the world have declined. This is happening at the very point when organisations really need to deliver better performances than ever and often with less resource due to tough economic trading conditions.
More than 44% of the global workforce intends to leave their employer within five years, and more that 21% are intending to leave within two years. These statistics are set against a difficult world economy and depressed job market that must be having a significant impact on reducing employee mobility and churn. Clearly there is now a build up of restlessness and frustration, which as the report suggests, is likely to result in a mass staff exodus. A third of employees reported that they are unable to perform optimally, with an average of thirty three percent of workers claiming that barriers put in place by the organisation are preventing them from excelling at work.
The behaviours demonstrated by engaged employees are very different to behaviours demonstrated by disengaged employees. Charismatic leaders build higher levels of workforce engagement. In The Leadership Quarterly 2006, Joyce Bono and Remus Ilies, used scenario experiments, cross-sectional surveys and laboratory studies to prove that inspirational and charismatic leaders had a stronger emotional effect on employees and consequently, cooperation than their non-charismatic counterparts. Charismatic leaders affect both their followers and the organisational culture. This ‘mood contagion’ means that charismatic leaders are capable of altering workforce attitudes, beliefs and motivation, making changes that are not easily implemented through conventional leadership approaches alone.
A 2014 survey that analyses employment trends revealed that attracting the right talent and skills was one of the biggest challenges for employers over the next decade. Great people want to work for great leaders. The greatest differentiator among the organisations of the future will be the ability to build world-class capability and skills. The war for talent exists at all levels of an organisation and charismatic leaders are more effective at attracting and retaining talent because they naturally create better quality relationships.
Mark Carney, the Canadian who took over as the governor of The Bank of England in July 2013 has a movie-star brand of charisma that has seen people’s perceptions towards Canadians move from ‘zeros to heroes’ in the UK. This is evident in the number of people who are now queuing up to work for the trendy and eco-friendly Carney who has transformed the staid Bank of England culture into a genuinely exciting and collaborative place to work!
