With over two-fifths (41%) of Brits wanting to start their own business one day, a new survey has revealed the most effective leadership styles for UK employees.1
To help SMEs drive growth, the business finance experts at money.co.uk business loans have launched a nationwide survey to uncover the most effective types of leadership and how this varies by worker demographics.
Most effective leadership styles, according to UK workers
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Which leadership style do you respond best to in the workplace? Pick the main option. |
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Democratic: Involves team members in the decision-making process |
46% |
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Transformational: Inspires and motivates team members to achieve their full potential |
21% |
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Laissez-faire: Provides minimal supervision and allows team members to make decisions |
11% |
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Autocratic: Makes decisions themself with little input from team members |
8% |
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Transactional: Focuses on routine, supervision, and performance-related rewards and consequences |
7% |
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Servant leadership: Prioritises the needs of team members and helps them develop and perform as highly as possible |
7% |
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Democratic
The leadership style that UK employees best respond to in the workplace is democratic, with nearly half (46%) of the survey respondents selecting this option. This leadership style involves getting input from the rest of your team during decision-making processes.
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Transformational
Transformational leadership is second among the most effective management styles in the UK, preferred by one in five (21%) employees. This leadership style is somewhat similar to democratic in that it involves a large amount of employee engagement. However, transformational leadership uses inspiration and motivation to achieve shared goals.
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Laissez-faire
Laissez-faire, meaning ‘allow to do’ in French, is the third-most preferred leadership style among UK workers (11%). This management approach is the antithesis of micromanagement, allowing workers almost complete autonomy, with managers typically only stepping in when absolutely necessary.
Further Insights:
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Men and women typically have the same order of preference when it comes to leadership styles in the workplace, with democratic again coming out top for workers regardless of gender (45% of men and 47% of women).
Joe Phelan, money.co.uk business loans expert, comments:
“Effective leadership doesn’t develop overnight, but small business owners can take proactive steps to refine their management skills. Seeking mentorship from experienced leaders, attending industry events, and enrolling in leadership courses can provide valuable insights and guidance.
“Investing in training, whether through online courses, business coaching, or workshops, can help business leaders sharpen their decision-making and management approach. In some cases, securing short-term capital through a business loan can provide the flexibility needed to fund these initiatives while maintaining healthy cash flow.
“Building a strong company culture is equally important. Actively listening to employees, encouraging collaboration, and investing in solid HR processes can enhance team cohesion and efficiency. While these efforts require time and financial resources, they can drive long-term success, enabling businesses to grow, adapt and succeed.”