James launched his mid size, Perth furniture business in 2015. The first three years saw a rapid increase in sales and profitability, but something wasn’t quite right in the last two years. There had been an increase in the number of customer complaints. Late deliveries, unfriendly customer service reps, lost sales opportunities and lost customers started to become a trend. Simply stated, James’ business was in trouble.

So, James called his managers into a claustrophobic conference room, he wanted answers. "I depend on you people to make this business work!" he barked. "Sales are dropping like a rock, which obviously means someone's not doing their job. We're not leaving this room until I find out who it is!"

No one speaks up. Everyone wants to crawl under their chair. James’ not getting answers, but what he doesn't know, is that the answer is right in front of him.

What is humble leadership?

James’ dictatorial leadership style might have worked when workers had few options and even fewer rights, but it clearly doesn't work now. The simple fact is that in the current employment landscape, workers who report to the "I know more than any of you" manager become resentful. They're less likely to be creative, resourceful or innovative—because in John's world, a mistake isn't a learning experience.

That's why an increasing number of business leaders are adopting a new approach, called ‘Humble Leadership.’ Humble leaders recognise their own limitations. They understand that everyone, irrespective of their position within an organisation, have something to contribute.

In How Humble Leadership Really Works , Harvard Business Review (HBR) explains how humble leaders (which they call "servant-leaders") develop their businesses by bringing out the best in their employees:

"The key, then, is to help people feel purposeful, motivated, and energized so they can bring their best selves to work…To put it bluntly, servant-leaders have the humility, courage, and insight to admit that they can benefit from the expertise of others who have less power than them. They actively seek the ideas and unique contributions of the employees that they serve. This is how servant leaders create a culture of learning, and an atmosphere that encourages followers to become the very best they can."

Why Does it Matter?

It would be easy to dismiss James’ lack of leadership skills as little more than a source of discomfort for his workers, not something that fundamentally affects the bottom line. The fact is, almost half of employees who work for leaders like James (according to Forbes ) are actively considering quitting. This ‘on average’ costs a business anywhere from 50% to 200% of an employee’s annual salary to replace them.

What are the principal traits of Humble Leaders?

Adopting a humble (ie, inspiring) leadership style, typically means higher employee engagement and increased productivity and profitability. For that reason, it's critically important to understand which traits characterise humble leaders. Although every business and every leader s different, generally, humble leaders share the following 5 traits:

Conclusion

A humble leadership style could be argued, is about ‘doing the right thing,’ looking after workers and respecting their contributions. Effectively leveraged and implemented, humble leadership can be a game changer for your business, reducing employee attrition, while increasing productivity and profitability.