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5 Keys to Effective Leadership in Small Business

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5 Keys to Effective Leadership in Small Business

Featuring Namely


Many small business owners are masters of their industry, but when it comes to managing a company, a new and different set of skills is necessary. According to the U.S. Census, 38 percent of small businesses have five or more employees.


That’s more than 2 million businesses that rely on strong leadership and employee relationships to keep their companies running smoothly. During our live Q&A, Judson Griffin from Namely provided us with 5 keys to effective leadership in a small business.


Set your company culture before making your first hire.

As the leader, it’s your responsibility to set a clear vision for your company. When you create the culture and set the values, what you’re really doing is creating the soul of the organization. According to Griffin, your first employees are often your most important because they are helping you create the vision, culture and values. Empower them.


Hire employees who share your vision.

The best hiring decisions aren’t hasty ones. It currently takes an employer 25 working days on average to make a hire - a 13-year high. When you’re hiring, there are multiple factors to consider, including: domain expertise, leadership skills, judgment (how are their decision-making skills?), autonomy (are they self- motivated?), and cultural fit.


Create a welcoming environment for new employees.

An employee’s first impression of your organization starts on the first day of work. Make sure your employees feel connected to your business’s missions and goals by establishing transparency and open communication. Check in with your new hires within their first 30 days to see how they’re adjusting to their role and the company.


Establish solid communication with your employees.

The best relationships are based on openness. When you’re doing your job as a leader, employees are clear on what’s expected. Employees can be reluctant to ask for help, so be proactive in making sure they have what they need. An open-door policy is key in a successful relationship.


Select the correct benefits to create employee loyalty.

According to Namely, staffers are 38 percent more engaged when they believe their employer cares about their well-being. People perform best when they are given meaningful work that leverages their personal strengths and aspirations. About 83 percent of employees say that recognition for work done was more fulfilling than any other compensation or gift - so focus on benefits that are based on more than just monetary compensation.


Originally published October, 2015

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