People-Centric Leadership: Tips on Building a Thriving Team Culture

In all my years working up the corporate ladder and managing people, I have seen different angles of perspectives in team management. Some things work well and others don’t. If there’s one thing that ensures long-term success, it’s how leadership translates into the creation of a thriving team culture. After all, that success can only be achieved in a team setting and in every team, you’re only as good as the weakest member of your team.

What I’m trying to say is that a great leader can’t do things single-handedly with a team backing him/her out. Imagine yourself guiding a rowboat with individual paddlers not in sync with their rowing. How will you reach from point A to point B when you’re running around in circles without clear direction? The answer is people-centric leadership. You see every paddler as people with different personalities, skills, and motivations and not just any cog of a machine. As a leader, you have to figure out how you can make all these different people work together by effectively communicating that you all move as one.

Coming from a psychology background, I believe there are lots of theories that supports the concept of people-centric leadership. Here's how:

• Motivation: People-centric leaders understand the psychology of motivation. They tap into intrinsic motivators like autonomy, mastery, and purpose [refer to Self-Determination Theory by Deci and Ryan]. By recognizing individual strengths and offering opportunities for growth, they create a more engaged and productive workforce.
• Social Psychology: People are social creatures with a strong need for belonging. People-centric leaders foster a sense of community and psychological safety within the team. This builds trust and cooperation, essential for effective teamwork [refer to Amy Edmondson's work on psychological safety].
• Emotional Intelligence: Great leaders possess high emotional intelligence (EQ). This allows them to understand and manage their own emotions, as well as those of their team members. People-centric leaders practice empathy, actively listen, and provide constructive feedback, creating a positive work environment.

When I do think about this leadership style, I can see it as a perfect analogy to what we're doing here at Swarna. We want to do something special here but getting everyone to buy into the idea is one thing so we have to go through a process of ups and downs to get to where we are right now. And I am going to share some magical insights, ideas, and tips that made our team what it is today (we still strive to do things even better moving forward!).

BUT…

Before we do that, let’s try to understand the concept first.

“Your Success is Our Success”

It may sound corny and cheesy but this philosophy rings true. Sometimes, leaders tend to focus too much on satisfying the customers and maximizing profits at all costs. Yet, there’s another way to get that ticked off your list.?

It’s all about taking an empathetic and compassionate approach to managing team members. That means investing in their professional development and overall well-being based on these five core principles that I have applied on my team at Swarna:

• Empathy: It’s the heart of the approach as it fosters trust and a sense of belonging. As a leader, I have to understand every Swarnian, including their needs, motivations, and concerns.
• Collaboration: As mentioned above, our success depends on the sum of every effort we all make. That means, we have to help each other to achieve collective success. As a leader, I want to make every Swarnian comfortable contributing their unique skills and knowledge. We all know ‘teamwork makes the dream work,’ right?
• Honesty: We want to have an open, transparent communication with everyone so that we are all aligned with our objectives while also challenging each other to be better. At the same time, we want everyone to make informed decisions too!
• Personal Growth: As mentioned above, we value continuous learning and so I am committed to developing every Swarnian by providing opportunities for skill development and supporting career growth.
• Flexibility: Although some employers have demanded return to office work, I always believe that everyone can be good at what they do at the right work setting and environment. That means, I put great emphasis on work-life balance and flexible work arrangements that cater to everyone’s needs.

In the aftermath of the global pandemic, a lot of workplaces have seen changing employee demands. A 2022 LinkedIn report has shown that many employees want greater empathy from the leadership as well as pay transparency and mental health benefits. Meanwhile, a Deloitte research has shown that Millennials and Gen Zs value ‘purpose-driven work.’ It suggests that organizations have to redesign their compensation packages and benefits to include flexible work schedules and access to mental health support.

Although it may cost a bit more, there is value for money in that.? According to Lattice CEO Jack Altman, “A people-centric culture stems from the belief that what you need to optimize for, as a company leader, is the success of people.” He added that having a culture that “optimizes for an individual’s growth, their sense of purpose, their learning, [and] their sense of community… [will] lead to the greatest overall company we can have.”

If you come to think of it, Altman’s statement simply justifies the idea that your business success is tied to the hardworking people that make it happen. So it’s fair enough to incentivize people that do the actual work for the team.

What Does Your Team Gain?

Did you know that a bulk of the labor market is now composed of Millennials and Gen Zs? Businesses that fail to adopt a more people-centric workplaces would lose the best and brightest in their workforce. I am very much aware that there are numerous benefits to this.

• Increased Productivity and Efficiency: When you make your people satisfied with their work, you are ensuring increased productivity and efficiency. An IBM research has shown that boosting employee experience would significantly boost sales outcomes, engagement, and revenue. More importantly, when your whole team feels valued and heard, it often leads to a more positive work environment.
• Better Customer Satisfaction: When every member of your team feels like they're being valued, employee satisfaction often creates happy customers. Why? They are highly motivated to go above and beyond their role to ensure they get their job done right in a timely manner.
• Talent Attraction and Retention: Let’s face it, no one wants to work in a toxic environment and it’s not a surprise to see high levels of employee turnover in companies that don’t value people. Once an organization values their employees, they are less likely to leave thereby cutting costs associated with attracting and retaining top talents.
• Winning Culture: Who doesn’t like to win? People-centric leadership ensures everyone plays their role and helps each other out to keep the team moving forward. It’s just like coaching your favorite sports team to victory after victory. Such a leadership approach fosters positivity based on trust, open communication, and empathy.

Now that you know how it works and you get out of it. Let’s talk about helpful tips to get you started and build a thriving team culture through people-centric leadership.

Some Helpful Tips

There are things that don’t seem to end and one of these is creating a people-centric culture in your workplace. That is why I highly encourage a mentality of continuous learning and improvement to everyone. It’s not a one-way street as it needs regular communication between the leadership and the rank and file. It’s all about the overall well-being and experience of everyone in the team.

Know Where Everyone’s At

It’s not just about where they are and what they’re doing, you have to know what and how they are feeling right now. It’s also about hearing their sentiments and needs before and after making any decision or implementing a particular change. One effective way to do it is having regular catchup meetings and open sessions (not necessarily talking about work). That’s what we usually do in my team.

Make Them Understand

If you want to make your company people-centric, you have to make sure that everyone from the top down to the bottom understands the benefits of it. They should buy in with the philosophy by supporting and participating in every aspect of it from day one. That means, they have to know that they are not just an individual but the company itself. With that being said, they have to participate in every process, decision, and function as their voice has to be heard.

Encourage Inclusion and Diversity

I am very much fortunate to have a team of people from different backgrounds and walks of life. That’s the thing that makes my team strong as inclusion and diversity fosters different talents, viewpoints, ideas, and innovation. I strived to work hard to ensure my fellow Swarnians feel involved, respected, and supported so they can thrive and grow.

Purpose-Driven Work

As mentioned above, every member of the team has to learn to set a strategic goal to start. I encourage them to continue training to boost their productivity and skill sets. By satisfying their fundamental needs and urge to develop, learn, and take on new challenges, their engagement and motivation are boosted even further. In addition to the Deloitte study mentioned above, internal hires may develop the same capabilities of an external hire in just 9-12 months for one-sixth of the cost of hiring new people on board.

Performance Analysis Feedback

I keep repeating the mantra of continuous improvement in our team and in addition to this, I encourage performance analysis feedback to continuously improve personnel development. In this way, every individual would be able to gauge their progress frequently and more importantly, set themselves their own personal goals and milestones in addition to the ones with the team. By highlighting their accomplishments, they are more inspired to advance within the company. More importantly, it also creates a coaching culture that makes everyone better.

Provide help, guidance, and direction

People-centric leadership isn't about abdication; it's about empowerment with clear vision. We provide the team with the support, guidance, and direction they need to thrive. This includes setting a strong strategic direction, offering mentorship and coaching, and being available to make critical decisions when necessary. There will be times, especially under high pressure, when decisive leadership is crucial. As my team once reminded me, “Not everyone needs to give their opinion if we want to make a decision within this time pressure”. The key is to have established trust and open communication beforehand, so the team understands the reasoning behind swift decisions.

Final Words

Despite the growing popularity of automation and artificial intelligence, companies and organizations have to explore the human aspects of the workplace. The hardworking men and women that make brands successful are not faceless entities.

By putting back the value of people in the workplace, you are boosting productivity, accelerating growth, and sharpening your brand's competitive edge. Create a thriving team culture that elevates learning, development, and training to a new level.

People-centric leadership is not just a trend, it's the way of the future. We can build a more engaged, innovative, and successful workforce by embracing this approach.

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