The “Best Places to Work in Peru 2024” ranking, compiled by Great Place to Work Peru (GPTW) and released in late January, revealed several improvements among the organizations evaluated. As GPTW told Forbes, some of the most significant improvements were related to leadership. The organization explained that leaders’ communication has become more effective and relevant to employees. At the same time, leaders at the ranked companies stand out for allowing employees’ ideas to be heard and valued by the organization.

 

These findings shared by GPTW confirm the importance of leaders in strengthening an organization’s work environment and, consequently, in attracting and retaining talent. “Leaders are the primary drivers of culture within an organization: because they have authority over others, they are the ones who constantly define ‘how things should be done.’ Since the organizational climate is the result of employees’ perceptions, interpretations, and expectations regarding the organizational culture, it is crucial to analyze how different leadership styles develop within an organization so that they can be aligned with what the organization culturally requires to execute its strategy,” says Eduardo Freyre, head of consulting at Great Place To Work Peru.

It is in this context that the question arises: what characteristics do leaders need to foster a positive work environment? Enori Larrabure, Talent Management Manager at Cornerstone Peru, explains that today employees value leaders who promote flexibility, autonomy, and empowerment among their team members. “Flexibility so that employees, regardless of their position, can participate in different projects that allow them to gain a more complete and comprehensive view of the organization. Autonomy and empowerment by taking responsibility for decision-making and being open to proposing new ideas that they can support and ideally implement. Additionally, today’s leaders are expected to manage and coordinate cross-functional teams, aligning communication styles and planning to reach both individual and collective agreements,” says the executive.

Freyre adds that leaders are valued for being empathetic, knowing how to listen, and, particularly, reflecting the organization’s values. “In short, they want their leaders to be able to help build high levels of interpersonal trust to foster greater collaboration among all team members,” says the specialist. To these elements, Marcela Olivieri, principal associate at Page Executive, adds other equally relevant characteristics: integrity, ethics, resilience, the ability to foster creativity, and adaptability. Having and sharing a purpose with their teams is also vital for leaders, says Freyre. The expert asserts that leaders must make employees feel that the organization’s successes are a collective effort.

Beyond what employees expect today, leaders also seek work environments that enable them to demonstrate the aforementioned virtues. “According to the latest study by Michael Page on Talent Trends 2023, 46% of leaders in Latin America highlight the importance of organizational culture and values. This underscores their interest in a genuine commitment from the company. Although 20% of leaders have left jobs due to dissatisfaction with the company’s strategy and direction, 77% believe the company’s ethics align with their values. Furthermore, the study revealed that 63% of C-level executives in Latin America are seeking new employment, with organizational culture and the company’s ethical approach being key factors in their decision,” explains Olivieri.

CHALLENGE FOR COMPANIES

What can companies do to cultivate leaders with the aforementioned characteristics? According to Fernando Gonzales, CEO and founder of Bigmond Group, there are three factors that can accelerate the development of internal leadership. “First, it is good practice for the company to define the profile of the organization’s leader. Second, having mature performance evaluation systems and leadership development programs at the operational and strategic levels. And third, fostering an organizational culture that recognizes leadership, using surveys, recognition programs, and even bonuses for that purpose.”

For Larrabure, of Cornerstone, companies can opt for leadership programs, coaching, executive mentoring, and internal mentor training that enable the sharing of knowledge among the organization’s leaders. “Leaders must foster a training and development plan for their teams and avoid making reactive decisions when strategic changes arise, only to realize too late that the teams were not prepared to handle changes or new roles,” adds the expert. For her part, Olivieri, a principal associate at Page Executive, emphasizes that leaders must be willing to continuously learn and grow. “Organizations must identify the competencies and skills they seek in their future leaders and establish a clear framework to help employees understand what is expected of them,” says the executive.

Freyre, from GPTW, argues that the most positive leadership can be developed to the extent that organizations promote critical thinking and create spaces where the exchange of ideas is focused on organizational learning. “To develop leaders, it is essential to cultivate individuals who are self-reflective about their own opportunities for improvement, who are deeply curious about how to leverage the talents of others, and who connect with their own humanity so they can then connect emotionally with others—whether they are leaders, peers, internal clients, or direct reports,” she concludes.