The Best Leadership Styles for the Hospitality Industry

The way a supervisor or manager interacts with their employees sets the tone for productivity and morale. A poor leadership style can hurt your productivity just like it can boost it.

According to Gallup, an analytics group, well-engaged employees have better customer service and result in 21 percent hire profitability. At least 70 percent of variations in engagement are a result of the quality in leadership. Being a supervisor is not just about overseeing tasks and operations; it’s about setting up the workplace atmosphere for success.

Poor leadership, with traits like micromanagement, poor communication, or strict, authoritarian approaches, can negatively affect both productivity and morale. When employees feel unsupported or undervalued, their motivation decreases, leading to decreased productivity and higher turnover rates. And while their are plenty of job-seekers out there, the resources it takes to find and train a good employee are more expensive than just effectively leading the staff you have now.

Gallup’s data highlights the correlation between engaged, respected employees and profitability. Ultimately, creating a positive work environment through good leadership has a good return on investment.

Because of the various departments involved in the hospitality industry, it’s important to be able to adjust leadership styles when needed. What works for one employee or one department might not be suitable for your business’s workforce as a whole. It’s good to be aware of these differences and to be adaptable.

Democratic

Seen as one of the more effective models and also known as “participative” leadership, it involves engaging employees in any decision-making, seeking their input, and using active-listening to show you value their opinions. In hospitality, this approach can lead to enhanced guest experiences and staff morale.Plus, employee insights can contribute to problem-solving and possible service improvements, ultimately benefiting you and your profit.

Autocratic

One of the least effective styles, autocratic, also known as authoritarian, leadership is defined by leaders who make decisions without employee involvement. This can display itself as rigid policies and control over staff as well as micromanagent, leading to potential demotivation, worse customer service, and higher turnover rates.

Laissez-Faire

A stark contrast to autocratic leadership, this style gives employees a lot of autonomy and gives them freedom to make decisions and manage their responsibilities independently. This means minimal supervision. This style can be effective depending on your staff. However, it can also require solid self-discipline and clear communication to maintain customer service quality and consistency.

Transactional

This style relies on rewards and punishments to motivate employees. You can use this leadership style through performance-based bonuses, incentivized strict adherence to standards, and consequences for mistakes or other issues. While it can improve consistency and encourage some employees, it may not help build internal motivation as transactional relationships often feel impersonal.

Team-oriented

A team-oriented leader emphasizes collaboration, team support, clear communication, and shared accountability. This style fosters cohesive and efficient teams, resulting in better customer service, staff satisfaction, and adaptability to guests’ changing needs.

Coaching

Coaching leadership involves guiding and growing employees through regular feedback and support. You can do this through ongoing training, performance discussions, and personalized guidance to improve staff skills, leading to improved guest service and employee growth. Employees who feel their skills are being fostered are also more likely to stick around.