Why Active Listening is Essential for Effective Leadership
As an entrepreneur coach, I understand that leadership is more than just making decisions and managing a team. One of the most important skills you can have as a leader is active listening. This skill doesn’t just help you understand your team better; it can also boost your business’s success.
In this article, we’ll explore why active listening is important for leaders, backed by science and real-life examples. We’ll also share how you can improve your listening skills to inspire and lead effectively.
Three Reason Why Active Listening Matters
Active listening is an important skill where you fully focus on the speaker, understand their words, tone, and feelings, and respond carefully. It’s not just waiting for your turn to talk; it means really trying to get the whole message the speaker is sharing. In fact, multiple studies show that active listening can greatly help by improving relationships, solving problems, and preventing conflicts.
A study from the University of California, Berkeley, showed that active listening affects the brain. When people listened to a speaker tell a personal story, their brain activity matched the speaker’s brain. This matching is thought to help with empathy and understanding, which are important for good communication at work.
In a work environment, active listening can boost productivity and teamwork. When team members feel heard, they are more likely to share ideas and work together, leading to more creative solutions and a better work atmosphere. Research shows that using nonverbal signals like nodding and eye contact makes speakers feel understood, which encourages open communication.
Here’s some other reasons why it’s so important:
Reason #1: Better Communication and Problem-Solving
A study published in the International Journal of Listening found that active listening leads to better communication and problem-solving. When team members feel heard, they’re more likely to understand each other and work together effectively. This reduces misunderstandings and helps solve problems faster. When you listen actively, you make sure that everyone on your team is on the same page, which can make your business run more smoothly.
Think about it this way: if a leader is always jumping in with their own opinions, they might miss out on valuable insights from their team. By listening, you open the door to new ideas and solutions that you might not have considered. This collaborative approach not only helps in finding the best solution but also makes the team feel valued and respected.
Reason #2: Improved Team Morale and Engagement
According to Society Insurance, when employees feel like they are truly listened to, their morale improves. Remember this important fact: Happy and engaged employees are more likely to stay with your company and work harder. This means that by practicing active listening, you can create a more positive work environment and keep your team motivated.
Imagine you’re in a meeting, and a team member brings up a concern. If you brush it off or don’t give it your full attention, they might feel discouraged and less likely to speak up in the future. On the other hand, if you actively listen and address their concerns, it shows that you care about their input. This boosts their confidence and encourages them to contribute more to the team’s success.
Reason #3: Your People Feel Better and Can Then Do Better
A study from Japan showed that when people believe someone is listening to them, their brain’s reward system is activated. This makes them feel good about the conversation and more likely to listen actively in return. This creates a culture of open communication and collaboration, which is great for innovation and teamwork.
This concept is sometimes referred to as “neural coupling.” When two people are truly engaged in a conversation, their brains start to align, making communication smoother and more effective. In leadership, this means that by actively listening, you’re not just hearing words—you’re connecting with the other person on a deeper level. This connection can be the foundation for strong teamwork and successful collaboration.
So when your people feel heard, they’re more likely to share their thoughts openly. This creates a positive feedback loop where listening begets more listening. It fosters an environment where ideas flow freely, leading to more creativity and better solutions. In a business setting, this kind of open communication can lead to breakthroughs and innovative ideas that drive the company forward.
I hope this helps you understand how important it is to listen to others. Next, let’s talk about how you can improve your active listening skills.
Many of us have a habit of speaking before thinking, which can make people who already don't feel safe with themselves feel downright terrified.
— Denise G. Lee (@DeniseGLee) August 20, 2024
We can cause so much damage when we allow ourselves to speak without understanding others and what is happening around them.
How to Improve Your Listening Skills
Now that we know why active listening is so important, let’s explore how you can improve your listening skills. And don’t worry—it doesn’t have to be in a high-pressure situation with a camera and microphone at a red carpet event. It just means focusing on the tips I mention in this section:
- Being fully present
- Asking open-ended questions
- Paraphrasing and reflecting back what you heard
- Avoiding interruptions mid-thought
- Providing feedback as appropriate
Let’s dive into each skill in more detail.
Be Fully Present
When someone is speaking to you, make sure you are fully present. This means putting away distractions like your phone, closing your laptop, and giving the speaker your full attention. It’s not just about hearing the words—they should know you’re invested in the conversation.
Former Ford auto executive Lee Iacocca pointed out,“Businesspeople need to listen at least as much as they need to talk. Too many people fail to realize that real communication goes in both directions.” This shows that communication isn’t just about talking; it’s also about listening to what others have to say.
Making eye contact, nodding, and giving verbal affirmations like “I see” or “That makes sense” can show the speaker that you’re engaged. It’s important to remember that being fully present isn’t just about physical presence—it’s also about being mentally and emotionally involved in the conversation.
Ask Open-Ended Questions
Ask questions that can’t be answered with just “yes” or “no.” For example, instead of asking, “Did you finish the report?” ask, “What challenges did you face while working on the report?”
Sam Walton, the founder of Walmart, once shared his secret to success. And it was just by listening and asking the important question and listening to what his employees had to say. “The key to success is to get out into the store and listen to what the associates have to say. It’s terribly important for everyone to get involved. Our best ideas come from clerks and stockboys.” Walton’s success came from listening to everyone in his company, no matter their role.
Open-ended questions encourage the speaker to share more and give you a better understanding of their thoughts and feelings. They can also lead to deeper discussions, where underlying issues or ideas might come to the surface. As a leader, this kind of insight is invaluable, as it helps you understand the full picture and make more informed decisions.
Paraphrase Their Words
I used to have a co-worker who would just say, “yeah” to everything I had to say. After a while, “yeah” meant – I hear you, but I don’t care. Don’t do that. Show that you understand by repeating back what you’ve heard in your own words. For example, you might say, “So what I’m hearing is that you’re concerned about the project deadline because of the recent changes in the schedule. Is that right?” This helps ensure you’ve got the message correct and shows the speaker that you’re engaged.
Author Roy T. Bennett once said, “Listen with curiosity. Speak with honesty. Act with integrity. The greatest problem with communication is we don’t listen to understand. We listen to reply. When we listen with curiosity, we don’t listen with the intent to reply. We listen for what’s behind the words.” When we show we care by paraphrasing, we show rather than tell others we care. And that can help you during the times when you need your team the most.
Paraphrasing not only helps clarify the speaker’s message but also builds trust. It shows that you’re not just passively hearing their words—you’re actively working to understand their perspective. This kind of validation can strengthen relationships and make your team feel more connected and supported.
Avoid Interrupting
Let the speaker finish their thoughts before you respond. Interrupting can make them feel like you’re not really listening. Besides it is rude and shows your low level of patience (as well as disrespect) if you do otherwise. If you have something to say, jot it down and wait for a natural pause in the conversation.
Stephen Covey said, “Most people do not listen with the intent to understand; they listen with the intent to reply.” Covey’s words remind us that effective listening is about truly understanding the other person. If you need to, as you listen to someone, practice repeating each word back in your head as they speak. It will force you not to be quick to speak and be focused on the words that you heard from others.
Interrupting breaks the flow of conversation and can lead to misunderstandings. It might also discourage the speaker from sharing their full thoughts. By waiting for a pause, you show respect for their perspective and give yourself time to fully process what they’re saying. This leads to more thoughtful responses and better communication overall.
Provide Feedback
Brené Brown once said, “If we shield ourselves from all feedback, we stop growing.” And how true is that. If we care and they ask for ways to do better, we should provide feedback. And please only offer feedback based on what you’ve heard.
Now is not the time to bring up old grievances on stuff that happened weeks or years ago. Focus on the present topic. And this doesn’t mean giving immediate advice or solutions, but acknowledging their feelings and showing empathy. You only do that if asked. So if you are unsure how to provide advice, you might say, “It sounds like you’re feeling overwhelmed with the new tasks. How can I help?”
Feedback is a critical part of active listening. It’s not just about agreeing or disagreeing with what’s being said—it’s about providing thoughtful, constructive input that helps the speaker grow. Whether it’s positive reinforcement or gentle guidance, feedback should always be delivered with empathy and respect. This helps build trust and encourages open communication.
The image below summarizes these tips. Next, let’s look at some ways you can use active listening with your customers or team members.
Examples of Active Listening
Let’s look at some real-life examples of how active listening can make a difference:
Customer Service
Think about running a customer service team. When a customer calls with a complaint, really listening to their issue helps you understand what they need and find a good solution. If you just rush to fix the problem without fully listening, the customer might feel like their concerns don’t matter.
Team Meetings
During a team meeting, if you see that one of your team members looks upset, don’t just ignore it. Listen to what they’re saying and address their concerns. This can help improve how your team works together and solve problems before they get worse. Use moments like this to build stronger relationships with your employees.
Employee Feedback
When an employee shares feedback about their job, listen closely to what they’re saying. If they feel heard and see that their feedback is acted upon, they are more likely to stay motivated and engaged in their work.
I hope you see how easy it is to listen actively to your customers and team members. Next, I will share my final thoughts.
Final Thoughts
Active listening is a key skill for any leader or business owner. It helps you communicate better, boosts team morale, and solves problems more effectively. By truly listening to your team and customers, you build trust and create a more positive work environment. I hope this article shows you how important active listening is for good leadership.
If you want to learn more about how to inspire and lead your team, I invite you to work with me.
You can also listen to my entrepreneur podcast for more tips on leadership and personal growth. Together, we can improve your leadership skills and take your business to the next level.
