Five Basic Leadership Principles to Inspire Performance
Less than 6 months into 2026, my LinkedIn has turned into a war zone, which makes sense given mass layoffs in every industry.
Meanwhile, CEOs are reverting back to an unapologetic “performance culture”.
“We will be ruthless in assessing our talent, our people.”
- Nestle CEO to investors
“It’s going to be an intense year, so buckle up.”
- Meta CEO to employees
Even if we set aside the humanity of leading instead of coercing, what many executives seem to be forgetting is that employee engagement drives performance. Gallup found the following differences in business outcomes for companies in the top 25% versus bottom 25% of employee engagement:
23% increase in profitability
18% increase in sales
Higher earnings per share
Meanwhile, fear-based cultures that rely on micromanagement and intimidation (*cough* threatened or impending layoffs *cough *):
Suppress innovation
Stifle communication
Decrease morale and engagement
Increase turnover
When profits are flowing, society is stable, and we aren’t contending with the uncertainty of a seismic workforce shift, it is “easy” for leaders to be proactive, inspirational, and creative. Speaking from personal experience, I also know that when leaders are under intense pressure and facing immense uncertainty, it becomes more difficult to lead.
So, for the time being, let’s return to five basic principles that will leave enough space for workers stay engaged while also recognizing that it might be difficult to shoot for the leadership stars right now:
Recognize your teammates as humans—have and remember conversations that extend beyond deliverables, deadlines, and resources.
Provide clear expectations—while “accountability” often gets a bad rap, our employees want to know what, how, and when we expect them to deliver.
Encourage questions—make it safe for employees to ask clarifying questions about priorities, assignments, etc. It is far better to answer a few questions than to waste time moving in the wrong direction.
Allow mistakes—people are imperfect. Take the fall for your team and give them the credit for successes.
Remove bullies—the smartest, hardest-working employee that makes other good employees feel inferior or inadequate will be a net negative to your team morale, functionality, and ultimately… productivity.
While the workplace currently seems dreary with record low employee engagement rates, great leaders have the opportunity to create environments that inspire great performance and ultimately encourage loyalty by following these five basic principles.
