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Leadership Style: What Works Best for Your Outsourced Team?

Leadership is like a puzzle with different pieces—each piece representing a unique style. Your leadership style can be inspired by your favorite leaders growing up,  personality, strengths, and experiences. All of these elements determine how you plan and put strategies into action while considering the expectations of your company and outsourced team from different backgrounds.

To lead your teams more effectively, you must first understand your leadership style. Once you understand how you lead, you’ll be able to offer more effective guidance and feedback to your teams. It also provides insights into your decision-making process, thoughts, and strategy development for making sound business decisions.

Every leadership style comes with its pros and cons, giving you a heads-up on areas where you can improve. This is crucial because some team members might be reluctant to share their thoughts on your leadership, even in anonymous surveys.

Types of Leadership Styles

1. Democratic Leadership (Participative Leadership)

While the leader ultimately makes the final decision, democratic leaders make sure that they consider input from every team member. He ensures that each employee has an equal voice in determining the direction of a project. Employees who work for a democratic leader understand that they are part of a larger team, appreciate collaboration, and recognize their role in shaping the work environment.

Why this leadership style is good for teams?

The democratic leadership style stands out as highly effective since it promotes active participation from every member. It fosters an environment where people feel free to share their opinions, knowing they will be heard. This approach also boosts employee engagement, as they are confident that their feedback holds value and will be acknowledged.

2. Autocratic Leadership (Commanding Leadership)

In an autocratic leadership style, the leader calls the shots without seeking input from their team members. This style is handy in certain when a business has to take charge of specific situations, like emergencies and crises where quick decisions are necessary.

Why this leadership style is good for teams?

This leadership style shines the brightest when a company faces tough decisions that don’t benefit from outside input. It works well when those in charge are well-versed in the subject and can provide clear direction to the team. This approach can also compensate for any lack of experience within the team.

3. Transformational Leadership

Transformational leaders earn the trust and confidence of their teams, motivating and guiding employees to reach company goals. They consistently challenge the status quo, inspiring growth and skill development among team members. 

Why this leadership style is good for teams?

Working with a transformational leader, you can expect a booked calendar and a heavy task list. Initially, the goals may be straightforward, but as you progress and achieve them, the leader will entrust you with more tasks and challenges, fostering your growth alongside the company.

4. Transactional Leadership

Transactional leadership relies on using rewards and punishments to guide and encourage behavior. This style operates on the assumption that teams require structure and supervision to fulfill business objectives and that they are motivated by the prospect of rewards.

Why this leadership style is good for teams?

Transactional leaders bring a sense of clarity and structure to expectations, providing employees with a reassuring understanding of what’s expected. This fosters a feeling of safety and a clear perspective on the rewards tied to achieving business goals.

5. Visionary Leadership

Visionary leaders set their sights on the future, concentrating on long-term goals to inspire and guide their teams toward a shared vision. These leaders promote collaboration, emotional intelligence, and teamwork. They cultivate a culture of innovation and change, urging individuals to embrace new ideas and approaches.

Why this leadership style is good for the team?

Teams thrive and find greater satisfaction in their work when they have a clear vision to pursue. Leaders of this kind provide vision statements and other motivational tools to inspire teams and foster active engagement in their tasks.

6. Laissez-Faire Leadership

The French term “laissez-faire” literally translates to “let them do.” Leaders with a laissez-faire leadership style make employees accountable for their work. This gives many employees an incentive to do their best work.

Why this leadership style is good for teams?

Leaders of this kind tend to foster a laid-back company culture, making them a great match for creative industries such as ad agencies or product design. Additionally, their style aligns well with businesses boasting a highly skilled team.


No matter the size of your team, the way you lead plays a crucial role in shaping how your team views you and collaborates to meet your company’s goals. The multitude of leadership styles available means that selecting one aligned with your strengths can elevate your effectiveness as a leader.