How Leadership Style Impacts Employee Engagement in a Company

Updated: Jan 15, 2019 UTC
  • 1822

Leadership and employee engagement, both are important for the smooth functioning of the company. Both of these aspects are dependent on each other. If one goes wrong, the other aspect gets affected. The style with which you behave with your employee determines how much the employee will engage with you. If you are too dominating and strict, they will think twice before talking to you. If you are too funny, they will not take you seriously. Make sure you combine different kinds of leadership styles so that you can control your employees and the employees connect with you.

How different styles of leadership affect employee engagement?

There are many leadership styles, listed below are the five major styles:

1. Autocratic leadership: This kind of leadership is where a leader dominates his employees to a great extent. He makes strict rules and regulations and does n’t accept any flaws in the work. He makes each decision solely on his perspective. This kind of leadership is needed only in military and not in corporate jobs.

If you behave like this in a corporate company, the employee will not even bother to engage with you, and he will not be satisfied at his work. You need to be strict only when it is necessary.

2. Laissez- Faire leadership: In this kind of leadership, leaders do not interrupt in the work of their employees. They give them the work and tell them to finish it within a certain period of time. Other than that, these kinds of leaders don’t supervise you neither they guide you. They tell you to work according to your own rules. This not the correct way to allot a work. A leader should make sure that the employee correctly does his work.

This leadership style works if the employees are very efficient and talented. But with most employees, they need someone to supervise them. They are not able to sort out their own mistakes, and therefore they need a leader. This is the least recommended style of leadership.

3. Democratic leadership: In this kind of leadership, leaders give importance to their employees. They are more than happy to discuss ideas with everyone. This style is most favored in any organization as it gives everyone a chance to speak and prove themselves.

But the problem here is that the leader is too lenient and employees tend to take him very lightly. They will not give their work on allotted deadlines and will not thrive much under his leadership. It is good to engage with employees but only till a certain level. Increased employee engagement may create a problem for you.

4. Transactional leadership: This kind of leadership deals with “give and take” concept. If you give the company an idea which earns them profit, the company will reward you. It includes feedback from the leaders on a regular basis, and it also ensures that employees are working efficiently. The name itself suggests the meaning of the leadership style. Its all about the transaction. The reward can be monetary or non-monetary. It differs from company to company. The rewards can include bonuses, promotion or identification. It motivates the employees to work hard. It is one of the best ways to engage with your employees.

The problem with this leadership style is that it may create groups in the company. Employees who frequently receive rewards might underestimate the employees that have just joined. This will demotivate them. To some extent, this kind of leadership is good.

 5. Transformational leadership: A leader with this kind of leadership style is ready to change according to the needs of the company. This is one of the best ways to grow a company and make it reach better heights. The leader will sit with the employees and discuss the material or work with them. If the work requires any changes, he will do it. He will consider everyone’s opinion and choose the best one.

The leader can face problems as he chooses opinions. Employees may think that the leader is biased if he takes someone’s opinion repeatedly, even if the idea is good. The leader could also make mistakes listening to the opinion of the employees. There is no major drawback as such.


To establish a good relationship between leaders and employees, the leader should have a mixture of all these styles. He should able to change his style as and when needed.

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