If you want to be an effective leader, you need to excel in communication. In fact, the success of your business relies on it.

According to a report from the Economist Intelligence Unit (pdf), poor communication can lead to low morale, missed performance goals, and even lost sales. A separate study found that inadequate communication can cost large companies an average of $64.2 million per year, while smaller organizations are at risk of losing $420,000 annually.

But effective communication impacts more than just the bottom line. For leaders, it’s what enables them to rally their team around a shared vision, empower employee, build trust, and successfully navigate organizational change. 

WHY IS COMMUNICATION IMPORTANT IN LEADERSHIP?

A leader is someone who inspires positive, incremental change by empowering those around them to work toward common objectives. A leader’s most powerful tool for doing so is communication.

Effective communication is vital to gain trust, align efforts in the pursuit of goals, and inspire positive change. When communication is lacking, important information can be misinterpreted, causing relationships to suffer and, ultimately, creating barriers that hinder progress.

If you’re interested in enhancing your leadership capabilities, here are eight communication skills you need to be more effective in your role.

ESSENTIAL COMMUNICATION SKILLS FOR LEADERS

1. Ability to Adapt Your Communication Style

Different communication styles are the most frequently cited cause of poor communication, according to the Economist Intelligence Unit (pdf), and can lead to more significant issues, such as unclear priorities and increased stress.

It’s essential to identify your leadership style, so that you can better understand how you’re interacting with, and perceived by, employees across the organization. For example, if you’re an authoritative leader, you likely have a clear vision for achieving success and align your team accordingly. While an effective approach for some, it might fall flat for others who seek more autonomy in their role.

All employee’s motivations are different, so knowing how to tailor your communication is essential to influencing others and reaching organizational goals.

2. Active Listening

Effective leaders know when they need to talk and, more importantly, when they need to listen. Show that you care by asking for employees’ opinions, ideas, and feedback. And when they do share, actively engage in the conversation—pose questions, invite them to elaborate, and take notes.

It’s important to stay in the moment and avoid interrupting. Keep your focus on the employee and what it is they’re saying. To achieve that, you also need to eliminate any distractions, including constant pings on your cell phone or checking incoming emails.

3. Transparency

In  a survey by the American Management Association, more than a third of senior managers, executives, and employees said they “hardly ever” know what’s going on in their organizations. Transparency can go a long way in breaking down that communication barrier.

By speaking openly about the company’s goals, opportunities, and challenges, leaders can build trust amongst their team and foster an environment where employees feel empowered to share their ideas and collaborate. Just acknowledging mistakes can encourage experimentation and create a safe space for active problem-solving.

Every individual should understand the role they play in the company’s success. The more transparent leaders are, the easier it is for employees to make that connection.