Everyone knows that good management matters: Employees with positive managerial relationships are more engaged, more productive, and more likely to stay. Companies led by great managers tend to have healthier, happier workplace cultures that shape their reputations in the market.
But what about the reverse? Does bad management have an impact on a company’s market reputation – and therefore, their ability to hire and retain top talent?
We asked three of our executive search leaders (Heavy Civil Division Executive Vice President David Goodrum and Mechanical Market Leaders Kirk Adcock and David Williams) for their insights on the most common management mistakes they see – and what impact those mistakes have on a company’s hiring and retention processes. Here’s what they told us:
Does a company’s reputation for management style have an effect on their recruitment and retention?
The short answer: Yes. In fact, David Williams tells us, “It comes up in just about every conversation I have with a candidate. I always ask what companies they respect in their market and what companies they want to stay away from – and the opinions are usually strong one way or the other.”
The reality is, even one toxic manager can have a detrimental effect on a company’s culture, affecting their ability to retain strong employees and recruit potential candidates. “The industry they serve will always hear the rumors,” Williams says. “It’s probably the number one way to ruin a company’s reputation, and it takes years to repair.”
So, what are the most common management mistakes you hear about from candidates? And what are the solutions?
Mistake #1: Lack of Transparency
Some companies make the mistake of omitting crucial information from current employees or potential recruits. For example, Williams says, “You’ll see a lack of transparency about a company’s financial situation and their projects.” In other cases, it’s the expectations or true scope of a role that gets danced around, rather than discussed in open, honest detail. “Good candidates can see through this right away and they will lose interest,” Williams says.
Solution: “Candidates want to know exactly what they’re signing up for,” Williams says, “whether they’re expected to save a division or a troubled project, or just keep a good thing going. Either way, if the hiring authority explains everything in detail, great candidates respect their openness, which goes a long way in building a positive relationship on the front end of the hiring process.”
This is an important point: A challenging role isn’t necessarily a red flag to a great candidate. It can actually be a draw for an employee who is hungry and competitive – as long as the situation is clear from the start. “When you’re honest and open with people, you allow them to proceed or turn down the opportunity – without chiseling manipulation,” adds David Goodrum.
Mistake #2: Dishonesty
A lack of transparency is usually an issue of omission – but some managers take it a step further, actively attempting to deceive candidates about some part of the company or role. Even when a moment of dishonesty is small, it can have a huge impact on a company’s reputation. “The community at large and the community of talent will find out, and it increases the challenge of bringing in new employees – because who wants to work for a manager like that?” Goodrum says.
Solution: It’s simple: Always be honest, no matter how big or small the issue. “Assume that everyone around you is just as smart, if not smarter than you,” Goodrum advises. “Don’t make the mistake of assuming that employees don’t know or recognize the truth.”
Mistake #3: Micro-Management
“This is one of the biggest complaints I hear from candidates,” Williams says. Overbearing managers who don’t give employees the autonomy and trust to do their jobs will struggle to retain top talent. Employees in every generation chafe against micro-management, but younger generations in particular push back against rigid management styles that feel unnecessarily restrictive. “The ‘my way or the highway’ attitude is everywhere in construction,” Kirk Adcock says. “And that attitude doesn’t really work anymore.”
Solution: Today’s leaders need to be more flexible in their approach to management. “These up-and-coming generations know they have options,” Adcock says, “and they’re much more prone than previous generations to leave a company if they don’t feel valued.” So, practice flexibility, hire employees you can trust, and then trust them to do their jobs.
Problem #4: Aggressiveness
Which leaders have the worst reputation in their markets? “Yellers and screamers,” Williams says. Managers with an overly aggressive leadership style crush their employees’ ability to engage in conversations, ask questions, and do their best work. And the company’s reputation suffers as a result.
Solution: This can be one of the more difficult reputations to repair, but it can happen. “We had a client years ago with managers who would let meetings get heated and come down hard on their folks,” Williams says. When turnover increased and hiring became more difficult, the company began to make cultural shifts: Managers worked on their leadership styles, and new managers with more positive relationship-building skills were hired as well. “It took a couple of years to repair their reputation,” Williams says, “but when they did, it totally changed the level of candidates they were able to engage with.” And best of all: “As a result, they were able to hire candidates who continued the cycle of change within their organization.”
Problem #5: Lack of Willingness to Change
“Einstein defined insanity as doing the same thing over and over and expecting a different result,” Goodrum says. “That applies here.” Let’s face it: No one’s perfect. Everyone has room for improvement, no matter where they sit in the company hierarchy. Managers who aren’t willing to examine their own behaviors and relationships, learn new things, and grow in their careers are going to struggle to retain strong teams and bring on new talent.
Solution: It can be very difficult to evaluate your own skills and shortcomings. So bring in outside opinions: “Ask a colleague at a similar level who does not directly report to you to be honest about your leadership style,” Adcock suggests. Build relationships up and down the corporate ladder that enable employees to come to you with concerns and constructive feedback. And remember that leadership is a balance.
For example, Adcock says, “Someone with a leadership style that’s too authoritarian can stifle innovation and collaboration, and reduce employee morale. But someone who’s completely flexible and team-oriented can come across as indecisive or permissive in situations when a direct, firm approach would have been better. So find ways to apply both styles when appropriate.”
Problem #6: Profits Over People
Managers can prioritize the company’s bottom line over the health, safety, and happiness of their employees in many different ways. “Teams are understaffed, employees are unsupported, they’re working long hours, there’s a lack of autonomy, a lack of flexible schedules…” Williams says. All of these factors contribute to a workforce that feels like their leaders don’t care about them – and a company with that reputation may find it hard to attract and retain great employees.
Solution: It’s simple, Williams says: “Treat employees like family and they will return it tenfold.” When employees feel genuinely cared about and supported by the people they work for, they are more willing to go above and beyond to support the company’s mission and bottom line, and more likely to stay with their companies for years to come. Within a company, this goes beyond individual manager-employee relationships: it’s reflected in an entire company culture of leadership, values, and priorities. “Elevate others before yourself,” Goodrum says, and develop a culture where that’s the common practice.
In the hiring process, Goodrum says, managers can communicate that style by “being interested – not just attempting to be interesting.” Find out about prospective employees’ needs, preferences, and goals, and make it clear that you’ll support their growth and engagement if they join your team.
Toxic leadership traits like the ones discussed here can impact every aspect of a company’s success, from the caliber of candidates they’re able to recruit, to the level of turnover they have to deal with, straight down to their bottom lines. The good news is, there are solutions to even the most damaging leadership mistakes – and while reputations can take time to repair, it is possible for companies to learn, grow, and come through challenges better than ever. And remember, the most effective leaders – regardless of their style – motivate and inspire others, bringing out the best in their people. Stay open to learning the most impactful ways to do that for your team.
