Why does fostering effective working relationships remain a challenge for leaders?

Hybrid working, communication barriers and conflict all present regular challenges

The abandonment of egos in pursuit of a shared dream or wider goal is crucial to resolving conflict. Picture: iStock

How do you manage people? What is the golden rule of managing people? What are good people management skills? Why is it difficult to manage people?

These are the questions that keep people managers up at night. Yet for leaders at all levels, the significance of working relationships cannot be overstated. 

These connections serve as the bedrock of organisational success, influencing everything from productivity to morale. But despite their importance, fostering effective working relationships remains a formidable challenge for many leaders.

Understanding the importance of working relationships

At the heart of every successful organisation lies a network of interconnected relationships. These connections facilitate collaboration, drive innovation and foster a sense of belonging among team members. 

But navigating the intricacies of these relationships can often be fraught with challenges, especially in our increasingly digital age. 

In their book Work Better Together, Jen Fisher and Anh Phillips note our increasing connection to technology is decreasing our connection to people. Human skills — like relationship-building, empathy and emotional intelligence — are essential for managers and leaders as they grapple with the future of work and attempt to harness digital technologies like AI.

The challenge of remote and hybrid work environments

The rise of remote and hybrid work models has introduced a new layer of complexity to working relationships. Virtual communication barriers, feelings of isolation and the lack of face-to-face interaction present unique challenges for professionals striving to cultivate meaningful connections in a digital landscape. 

Misalignment can be more likely to creep in under remote conditions, and it is often harder for dispersed employees to connect with an organisation’s mission, vision and values.

This can be a particular challenge for newer, less experienced employees. 

The genie of remote and hybrid working cannot be put back into the bottle: it is the responsibility of management and leadership teams to overcome the challenges these models give rise to.

In a recent IMI focus group, senior managers and leaders from some of Ireland’s top technology and IT companies noted new employees — working under remote and hybrid conditions — were not progressing at the rate of previous office-based cohorts. 

They felt this was due to a loss of “learning by osmosis”, whereby team members soak up critical work-related knowledge by working in proximity to their more experienced peers. 

Similarly, Slack’s research consortium Future Forum showed 42% of workers felt working from home gave them fewer chances to learn from colleagues, while a recent Growth Engineering report found 20% of learning comes from simply observing and interacting with colleagues, although research from London Business School suggests that figure could be even higher.

Nevertheless, the genie of remote and hybrid working cannot be put back into the bottle: it is the responsibility of management and leadership teams to overcome the challenges these models give rise to. 

IMI research shows investment in leadership development, continuous learning and upskilling initiatives are key — not only for employees to keep pace with evolving technologies and industry trends, but to develop and enhance the leadership skills, emotional intelligence and adaptability of managers (especially those going from an individual contributor to managing an entire team, newly tasked with inspiring those below them and influencing those above).

Overcoming communication barriers 

Effective communication lies at the core of any successful working relationship. Yet, miscommunication, misunderstandings and differing communication styles can impede collaboration and breed conflict. 

Learning to navigate these communication barriers is essential for fostering positive relationships in the workplace. Effective leadership starts with the ability to communicate persuasively, but this should not be reduced to one medium.

Leaders who articulate their vision, motivate their teams and engage stakeholders through persuasive and clear communication are better placed to set their organisations up for success.

According to a UCLA study, up to 93% of communication in the workplace is nonverbal (though the exact figure is heavily disputed) while nonverbal cues can be as almost five times as effective as what one says verbally. 

Similarly, roughly 65% of people retain visual information with the highest efficiency compared to auditory and kinesthetic learning. 

Recognising that communication is far more than just exchanging words, leaders who articulate their vision, motivate their teams and engage stakeholders through persuasive and clear communication are better placed to set their organisations up for success.

Enhanced team cohesion and increased stakeholder trust are just two benefits of effective communication, while poor communication can lead to low morale, missed performance goals and even lost sales, which is backed up by a report from the Economist Intelligence Unit. 

Another study found inadequate communication can cost large companies an average of $64m (€59m) per year. In an era of constant distractions and digital noise, it’s vital to practice active listening as a means to forge deeper connections, develop empathy and create a space where others feel valued and understood.

Managing conflict and difficult interactions 

Conflict is an inevitable aspect of any workplace environment. Whether it stems from differing opinions, personality clashes or competing priorities, effectively managing conflict requires tact, empathy and strong interpersonal skills. 

Similarly, dealing with difficult individuals and creative temperaments demands patience, flexibility and a strategic approach to communication.

The abandonment of egos in pursuit of a shared dream or wider goal is crucial to resolving conflict. 

For example, at a critical point during the Manhattan Project, the great chemist George Kistiakowsky threatened to quit because he could not get along with a colleague. Project leader Robert Oppenheimer replied: "George, how can you leave this project? The free world hangs in the balance." 

So conflict, even with such diverse and gifted people, can be resolved by reminding people of their organisation’s mission — which reinforces the need to give your team a clearly communicated vision they can all buy into.

Having a clear vision that inspires and motivates everyone in the organisation is crucial for steering the team towards its long-term goals. A shared vision fosters a sense of purpose and commitment, making the journey towards success more rewarding and allows conflict to be overcome.

Building trust and psychological safety 

Trust forms the foundation of any healthy working relationship. Establishing trust among team members fosters an environment of psychological safety, where individuals feel comfortable taking risks, expressing their ideas, and challenging the status quo. 

Famous research examples demonstrating the role of psychological safety in driving performance and better organisational outcomes include the work of Dr Amy Edmonson and Google’s Project Aristotle.

Navigating the complexities of working relationships is a multifaceted endeavour that requires patience, empathy and a willingness to adapt. 

However, building trust takes time, effort and a commitment to open communication. Drawing on Maister and Green’s work, Professor Roger Delves of Hult Business School notes trust takes time to build as it requires leaders to prove they are credible, reliable and capable of intimacy (ie building interpersonal relationships). 

However, the biggest factor to building — or losing — trust is self-orientation: leaders must not do anything that makes them appear self-orientated. Leaders must appear selfless.

Similarly, leaders must avoid making decisions contingent on the situation; even if a team doesn’t know exactly what decision a leader will make, they will expect that leader to make a decision congruent with consistent values. 

Leaders are not infallible, they may not get every decision right, especially amid so much uncertainty and complexity — but leaders should always be guided by the belief they are doing what is right for their people, their team, their organisations, their shareholders and their customers.

Navigating the complexities of working relationships is a multifaceted endeavour that requires patience, empathy and a willingness to adapt. 

By understanding the challenges inherent in fostering effective working relationships and implementing strategies to address them, managers and leaders can cultivate an environment of collaboration, trust, and mutual respect in the workplace.

• Ben Davern leads research and insights with the Irish Management Institute