What Makes a Great Boss? Leadership Traits Employees Value Most

Leadership can make or break an organization. A great boss is more than a manager—they are a cornerstone of organizational success, driving not only performance but also employee satisfaction and loyalty. Unfortunately, all too many organizations lack the leadership development needed to teach managers and executives how to be a great boss.

And unfortunately, poor leadership has real-world consequences, like high turnover, low morale, and diminished productivity. As Gallup has famously found in its research, the quality of management “explains 70% of the variance in team engagement.” That’s why, for example, 58% of employees who quit because of workplace culture say their managers are the reason why. 

So, what makes a great boss? A study of 195 leaders across 30 global organizations published in the Harvard Business Review focused on this question and identified the most important leadership competencies. 

1. Upholds High Ethical and Moral Standards

In a survey by consultancy group Robert Half, 75% of employees ranked “integrity” as the most important quality of a leader, followed by “fairness” at 58%. In other words, great leaders operate with integrity. They are honest, transparent, and make decisions rooted in fairness. These qualities are the foundation of how to be a great boss.

Why would so many workers rank integrity so highly? It’s the leadership quality most pivotal to building trust, the bedrock of any strong team. Employees are more likely to stay committed when they know they can trust their managers to do right by them. Employees value leaders who understand their struggles and treat them with fairness. 

Tip: Leader should check decisions against their organziation's values to ensure they are consistent and aligned. Communicating the "why" behind your decisions can improve transparency. Make time for one-on-one check-ins to understand individual challenges. Active listening and acknowledging employees' feelings can go a long way. 

2. Communicates Often and Openly

Silence creates uncertainty. Regular, transparent communication fosters trust and keeps employees informed and engaged. Plus, communication is just plain foundational to getting anything done. “[Leadership] is all about influencing people,” said Kirstin Lynde, founder of leadership development firm Catalyze Associates, in an interview with the Harvard Business School (HBS). Influence is impossible in the absence of good communication.

HBS Professor Anthony Mayo agrees. In his online Organizational Leadership course, he says, “To get people on board, they need to grasp what you’re conveying so they’re excited to join you in turning that direction into a reality. Your communication should meet people where they are, give them a sense of where the organization is going, and then give them a roadmap for how they can bridge the gap from where the organization is now to where you want to take it.”

Tips: Adopt an open-door policy and use multiple communication channels, such as emails, town halls, and instant messaging platforms, to share updates and solicit input. 

3. Posses Effective Problem-Solving Skills

According to a LinkedIn survey of 2,000 workers, the majority (68%) say they want a boss who can help them solve their work-related challenges. 

This doesn’t mean micromanagement, which can stifle creativity and breed frustration. Instead, a great boss provides clear objectives while allowing employees the autonomy to determine how to achieve them. Then, when faced with challenges or obstacles, the boss can help their employees to troubleshoot issues until resolved. The enemy here are leaders who are either absent or inaccessible, and therefore cannot or will not support their teams, and leaders who don’t have the requisite skillsets to problem-solve.

Tips: Training can make a tremendous difference here. Given that 85% of managers receive no formal management training or leadership development, organizations have an opportunityto cultivate better bosses simply by offering more leadership development training, practice, and options. 

4. Provides Safety for Trial and Error

One often underappreciated aspect of the worker-manager relationship is safety. Do workers feel safe with their bosses, especially if they are expected to perform at a high level and the organization prioritizes innovation and invention?

Innovation requires experimentation, which inevitably involves failure. Employees perform best when they know mistakes are seen as learning opportunities rather than punishable offenses. In practice, that means organizational operating procedures must support experimentation and be generous and forgiving of mistakes made in pursuit of innovation. For example, Google’s innovation lab gave bonuses to team members involved in a project that was ultimately killed; this softens the blow and reassures workers that it is “safe to fail.” 

Tips: Create a psychologically safe environment by framing mistakes as opportunities for growth. Share your own lessons learned from past failures to normalize the process. 

5. Nurtures Employee Growth

A good boss is constantly working to develop the next generation of leaders. In other words, it’s not just current bosses who need leadership development; the workforce benefits from it too. Whether that means investing in training, mentoring their direct reports, or supporting their career advancement prospects in other ways, employees want to grow, and good leaders are responsive to that. 

Focusing on creating learning and advancement opportunities for workers has additional benefits, too. Nearly two-thirds (58%) of workers say they would leave an employer who failed to provide adequate career development and training options. In other words, leaders who focus on employee growth are more likely to reduce turnover and improve employee retention. They are also helping to create a valuable pipeline for future leaders. That benefits the company as a whole.

Tips: Partner with employees to create personalized development plans. Encourage participation in workshops, online courses, and cross-training initiatives. Assign stretch projects and provide mentorship opportunities. Encourage high-potential employees to take on leadership roles in small initiatives. 

Final Thoughts on How to Be a Great Boss

Leadership is not about titles or authority—it is about influence and service. When leaders prioritize ethical behavior, effective communication, and the growth of their employees, they cultivate an environment where everyone thrives. The traits of a great boss are not only a roadmap for individual success but also a blueprint for building resilient and high-performing organizations. 

CoAdvantage, one of the nation’s largest Professional Employer Organizations (PEOs), helps small to mid-sized companies with HR administration, benefits, payroll, and compliance. To learn more about our ability to create a strategic HR function in your business that drives business growth potential, contact us today or learn more about our HR Administration services.