Effective leadership drives innovation and growth in Payments and FinTech. Yet, too often, organizations are hindered by poor leaders who manage to retain their positions. This issue frustrates employees, stifles innovation, and limits the growth that these industries depend on.
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A Gallup survey revealed that 50% of employees have left a job to escape a bad boss. In a sector where innovation is critical, ineffective leadership is particularly damaging. According to the Corporate Executive Board, companies with poor leadership experience 24% lower employee engagement and 30% higher turnover rates.
At Dexterous, we have observed how ineffective leaders thrive in environments that should expose their shortcomings. Understanding how they persist is essential for companies striving to excel in competitive Payments and FinTech markets.
Why Ineffective Leaders Persist
Mastering the Art of Managing Up
Many ineffective leaders excel at managing up, often at the expense of their teams. Their strategies include:
• Satisfying superiors while neglecting their team’s needs
• Crafting a favorable image for leadership
• Delivering just enough to create an illusion of competence
In large organizations, where executives may lack visibility into daily operations, this skill is especially effective at concealing poor leadership.
Navigating Peer Relationships
These leaders are often skilled at positioning themselves as indispensable through:
• Building strategic alliances
• Avoiding conflicts that might reveal their weaknesses
• Presenting themselves as team players
This approach maintains their reputation among colleagues, where peer feedback often influences leadership evaluations.
Taking Credit for Others’ Work
A common trait of ineffective leaders is appropriating ideas and achievements. They:
• Claim successful initiatives as their own
• Present themselves as the driving force behind accomplishments
• Undermine recognition for the actual contributors
This behavior inflates their value while demoralizing team members, risking disengagement and talent loss—both critical issues in FinTech’s competitive landscape.
Leveraging Internal Politics
Corporate environments, including FinTech, are often politically charged. Ineffective leaders use these dynamics to their advantage by:
• Building connections with key decision-makers
• Aligning with influential factions
• Sidestepping accountability through political maneuvering
This approach allows them to maintain their positions, even with minimal contributions.
The Organizational Impact
The presence of bad bosses leads to:
• Disengaged employees and lower team morale
• Reduced innovation in a sector that thrives on new solutions
• Increased turnover and loss of top talent
• Declines in overall performance and competitiveness
Research from the Center for Creative Leadership shows that 38% of new leaders fail within 18 months due to inadequate skills and support. According to the Society for Human Resource Management, the cost of turnover can reach 150% of an employee’s salary when factoring in recruitment, training, and lost productivity.
How to Address Ineffective Leadership
Look Beyond Surface Performance
• Evaluate leaders based on team outcomes and employee satisfaction
• Focus on long-term project success rather than short-term wins
Implement 360-Degree Feedback
• Collect input from subordinates, peers, and superiors
• Use anonymous feedback channels to ensure honest assessments
Monitor Team Turnover and Engagement
• High turnover rates often signal leadership issues
• Regular employee engagement surveys can highlight areas for improvement
Prioritize Leadership Development
• Invest in training programs to build leadership skills
• Encourage mentorship and continuous learning for leaders at all levels
The Wrap-Up
Bad bosses can hinder innovation and growth in fast-paced Payments and FinTech organizations. Identifying and addressing ineffective leadership is critical to maintaining a competitive edge in these industries.
At Dexterous, we specialize in top payments and fintech industry talent, understanding the importance of identifying and nurturing genuine leadership talent. Our recruiting services are designed to help payments & fintech companies find leaders who not only manage up effectively but also inspire and empower their teams to achieve greatness