How Transformational Leadership Helps Drive Performance And Attract Top Tech Talent

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You’ve probably heard the saying, ‘People don’t leave jobs, they leave bad managers.’ Well, the results from our 2024 Tech Talent Outlook show this isn’t just a LinkedIn catchcry. Of the 907 candidates we surveyed, 39.64% said they want an employer who shows strong management and leadership (an increase of 12.69% on the previous year). And they’re prepared to leave if they don’t. 

Good leaders inspire us, motivate us, and challenge us to be the best we can be. They can be the one thing that elevates our career or limits it. 

So, in this article, we explore how transformational leadership has a lasting impact on tech talent teams and share the three key attributes of good leaders that set your people up for success. 

In this article: 

Leadership is more than just project management

Effective leadership in tech teams is not just the ability to guide projects to completion; it is about fostering an environment where innovation thrives, and employees feel valued and empowered. 

In our 2024 Tech Talent Outlook, candidates ​ranked these benefits as more important when​​ seeking employers​:

  • demonstrate strong management and effective leadership (39.64%) 
  • have strong values and moral compass (30.77%) 
  • provide long-term job stability (38.82%) 
  • ​​provide the ability to progress through learning and development opportunities (46.86%)​
  • fosters a pleasant work atmosphere - 28.28%​​

At the end of the day, it’s our leaders who are responsible for delivering on these expectations, building trust, motivation, job satisfaction, confidence, and engagement.

The impact of transformational leadership on tech teams

In the dynamic world of technology, good leadership is essential for innovation, overcoming challenges and inspiring teams. We wanted to hear from someone who’s been in the trenches and seen the impact of transformational leadership firsthand. 

Mike Schembri, Senior CIO Advisor and Leadership Coach, shared his experiences and thoughts around influential leadership styles on tech teams. Schembri has had substantial experience working across different CIO roles at Fujifilm and is responsible for having transformed a struggling team there into one of the best performing groups in the region. 

What’s the story? 

While initially deemed the worst performing team across all measures, under Schembri’s leadership, they transformed to achieve remarkable success. Within eighteen months, they led the region in recoveries and billing accuracy, having accomplished the feat with the same team members who had been underperforming before Schembri’s guidance. 

What did he do differently? 

Known as a transformational leadership style, Schembri’s approach is to see the potential in every team member and harness that potential effectively. So, he created an environment that fosters growth and allows individuals to grow independently, by providing the support they need to excel and removing the obstacles getting in the way of their success. 

​​As Canva’s Co-Founder and COO said, ‘Empower people to do their best work, and magic happens.’

Schembri’s 3 attributes of transformational leadership

Schembri identifies three key attributes of good leadership: 

1. Understanding what good looks like 

Leaders must have a clear vision of what excellence entails (in the context of their specific business needs). This ability to clearly articulate what good looks like is critical to achieving high performance, in that it helps to set realistic and motivating goals for team members. 

Ask, what outcomes are we seeking and which behaviours and interactions do we desire to help us get there? 

2. Empowering team members 

Effective leaders empower their teams by providing autonomy and expecting accountability. This empowerment fosters a sense of ownership and responsibility among team members, leading to higher performance and job satisfaction. 

You only need to look at the long-lasting impact Tim Reed had during his tenure as CEO of MYOB. His emphasis on customer-centric innovation and employee engagement was instrumental in MYOB’s growth (earning him enough respect and gratitude, his former team wrote this fitting tribute.) 

3. Creating a respectful environment

Transformational leaders portray a deep respect for each individual and their needs. That includes trusting and respecting their expertise and opinions, and creating an environment that fosters collaboration, open communication, and feedback. Schembri believes that the person closest to a problem is best equipped to solve it, and it’s the leader’s role to facilitate this by removing organisational obstacles and enabling their people to succeed. 

Bonus! Embracing non-technical ‘soft’ skills

In the fast-moving tech industry, non-technical leaders skilled in effective communication, empathy, adaptability, and the ability to create an inspiring vision can handle challenges better and keep their teams motivated through change. Their lack of technical knowledge can be advantageous, because they need to rely on their team’s expertise, preventing a culture of micromanagement. 

The demand for good leadership skills is increasing

As the tech industry continues to grow and evolve, the need for transformational leadership skills is becoming critical for candidate attraction and as a driver of organisational performance. By fostering an environment of respect, empowering employees, and setting a clear vision and goals, your leaders can inspire their teams to achieve great success. 

Want to see what else tech candidates want in an employer?

Download our 2024 Tech Talent Outlook.