As a business leader who has managed teams across Australia and New Zealand, I’ve learned one of the most underrated yet transformative leadership skills: the ability to listen—truly listen—to your employees.

Leaders today often mistake speaking for leading. We believe that giving orders, presenting strategies, and dominating meetings equates to strong leadership. But the reality? The most effective leaders are not the loudest in the room—they are the ones who listen the hardest.

Research supports this. A study by the Harvard Business Review found that leaders who listen well are perceived as more competent, trustworthy, and inspiring (Zenger & Folkman, 2016). Meanwhile, poor listening is linked to miscommunication, low morale, and costly mistakes.

So why is listening so critical in leadership? And how can you cultivate it in your own management style? Let’s dive down to find out.

Listening builds trust – the foundation of leadership

People don’t care how much you know until they know how much you care.

Theodore Roosevelt

Employees don’t follow leaders they don’t trust. And trust isn’t built through authority—it’s built through empathy, understanding, and genuine engagement.

A Google study on high-performing teams (Project Aristotle, 2015) found that psychological safety—where employees feel heard and valued—was the #1 predictor of team success. When leaders listen:

• Employees feel respected, leading to higher engagement.
• Problems are identified earlier, before they escalate.
• Innovation thrives because people speak up without fear.

Listening uncovers hidden problems (and solutions)

The biggest communication problem is we do not listen to understand. We listen to reply

Stephen R. Covey, The 7 Habits of Highly Effective People.

Many leaders assume they know what’s happening in their company. But frontline employees often see issues long before executives do.

Toyota’s legendary “Kaizen” philosophy encourages all employees to suggest improvements – because the people doing the work often have the best solutions.

Additionally, an MIT Sloan study (2017) found that companies with strong upward communication (where employees speak freely to leadership had 37% fewer operational failures.

Listening prevents costly leadership blind spots

When we fail to listen, we make decisions in an echo chamber of our own biases.

Daniel Kahneman, Thinking, Fast and Slow

Confirmation bias – the tendency to favour information that aligns with our beliefs – is a silent killer of good leadership. Leaders who don’t listen:

• Miss early warning signs of declining morale or market shifts.
• Make poor strategic decisions based on incomplete data.
• Create toxic cultures where dissent is suppressed.

Research insight

A Columbia Business School study (2019) found that leaders who actively seek diverse opinions make better decisions 72% of the time than those who rely only on their own judgement.

Listening fuels innovation and employee ownership

The best ideas come from the quietest voices – if you’re willing to listen.

Simon Sinek, Leaders Eat Last.

Innovation doesn’t come from boardrooms – it comes from employees who feel safe to share unconventional ideas.

• 3M’s “15% Rule” (where employees spend 15% of their time on passion projects) led to inventions like Post-it-Notes – because leadership listened to grassroots creativity.
• A Gallup study (2020) found that teams with leaders who listen have 21% higher profitability due to increased innovation.

One of the simplest examples I can think of was when my company was involved with a local marketing agency in Sydney. We were working with a junior designer who suggested a radical rebranding idea in a casual conversation. The CEO listened, tested it, and it became one of their most successful campaigns – all because someone felt safe enough to speak up.

How you can become a leader who listens

If you’re trying to become a leader who listens, the first thing to remember is that listening isn’t passive – it’s a skill that requires practice. Here are a few tips on how to improve:

Practice active listening (not just wanting to talk)

• Maintain eye contact.
• Paraphrase what you hear (“So what you’re saying is…”)
• Ask open-ended questions (“What do you think we should do?”)

Create safe spaces for honest feedback

• Anonymous surveys (e.g., Officevibe, Culture Amp)
• Regular 1:1s where employees set the agenda.
• “No-interruption” meetings where junior staff speak first.

Act on what you hear

Listening is useless if nothing changes. Follow up on feedback to show it matters.

Final thought – the silent advantage

Leaders are mostly expected to have all the answers. This means that the real power lies in asking the right questions – and listening deeply to the responses.

The most important thing in communication is hearing what isn’t said.

Peter Drucker

If you want to lead a company where people thrive, innovate, and stay loyal, start by listening more than you speak.

Your employees – and your bottom line – will thank you.