Organizational climate affects how people see the organization and how it feels to work there. This affects factors such as absence rates and staff turnover – which combine to affect the bottom line. Use this interactive PDF to understand the implications of leadership’s effect on climate, and find out how your leadership style influences climate.

1. Overview
Leadership’s effect on climate
Global trends
Real results
Download our guide
Are your leaders creating a
profitable climate?
55 per cent of the world’s
leaders aren’t.
A positive climate can improve an organization’s
bottom line by up to 30 per cent – and climate
is up to 70 per cent determined by leadership.
Climate affects how people see the organization
and how it feels to work there. This affects factors
such as absence rates and staff turnover – which
combine to affect the bottom line.
T
urn to Leadership’s effect on climate to
find out how leadership influences climate.
T
urn to Global trends for insights into the
leadership styles in use around the world.
T
urn to Real results to discover how climate
affects performance in real organizations.
For more information visit atrium.haygroup.com or email haygroup.atrium@haygroup.com

2. Overview
Leadership’s effect on climate
Global trends
Real results
Download our guide
Learn to cultivate the
right climate
Leaders affect climate through the way they
interact with employees: their personal
leadership style. Hay Group has identified
the six leadership styles capable of the biggest
impact on the climate of a team.
In organizations with positive climates and
high performance, the majority of leaders use a
combination of three or more of these leadership
styles – usually a mixture of Authoritative,
Affiliative, Democratic and Coaching leadership.
In organizations where the climate is de-motivating,
we found leaders using just one or two styles
– mainly Coercive and Pacesetting leadership,
which focus on short-term success.
For more information visit atrium.haygroup.com or email haygroup.atrium@haygroup.com

3. Overview
Leadership’s effect on climate
Global trends
Real results
Download our guide
Keeping a weather eye
on the world
Hay Group reviewed the styles and climate
assessments of over 86,000 leaders worldwide.
The charts in the box opposite show the results.
In a high performing climate, the team
is motivated and focused.
In an energizing climate, the team is
motivated, but may find goals confusing,
unclear or misaligned.
In a neutral climate, team members’ efforts
are mostly driven by their own values and
enthusiasm. Some may perform well; others
may do only the minimum required.
In a de-motivating climate, the team is
discouraged, disengaged and lacks focus.
They are likely to be under-performing
and are at high risk of turnover.
Asia
EMEA
Latin America
Asia has the highest
percentage of leaders
creating de-motivating
climates (66%). Of these
74% tend to rely on just
one or two leadership styles.
It is common in Asia to adopt
a paternalistic style of
leadership, a combination
of the coercive and affiliative
leadership style. But the
region’s best leaders have
a very broad leadership
repertoire combining the
authoritative, affiliative and
coaching styles to create
high performing climates.
North America
Showing climate
Pacific
View leadership
66% 14%
1 % 10%
1
De-motivating
High performing
Neutral
Energizing
For more information visit atrium.haygroup.com or email haygroup.atrium@haygroup.com

4. Overview
Leadership’s effect on climate
Global trends
Real results
Download our guide
Reap the rewards of a
high-performing climate
Financial services
Research and case studies show again and
again that a positive climate has significant and
measurable effects on business performance.
Call centre
The effect of leadership styles on climate,
and of climate on the bottom line, are not
limited to any one industry or sector. From the
public to the private sector, from telecoms to
health, the evidence continually demonstrates
the strong influence of leadership.
26
1/3
%
25
%
Health
Retail
Telecoms
In a call centre, teams whose managers created a
positive climate outperformed their sales targets by
this amount – compared to their peers’ four per cent.
The drop in staff turnover in teams with positive
climates, compared to their peers.
The drop in absence rates in team with positive
climates, compared to their peers.
For more information visit atrium.haygroup.com or email haygroup.atrium@haygroup.com