Growth mindset crucial for organisational success – report

The latest report from TalentLMS highlights the influence of a growth mindset in the workplace and the potential impact of generative AI on soft skills.

Based on a survey of 300 business leaders and 1,000 employees in the United States, the report reveals that a significant majority of executives believe a growth mindset directly influences organisational performance. Eighty per cent of the surveyed executives attribute revenue growth to adopting this mindset, and 89% agree that future business success is contingent on leaders embracing a growth mindset.

Nikhl Arora, Chief Executive Officer at Epignosis, the parent company of TalentLMS, emphasised the role of leadership in fostering this mindset. "As leaders, we must embody this growth mindset and lead by example," he said. "We must be the first to embrace new challenges, to admit our mistakes, and to celebrate the learning process. By doing so, we create an environment where everyone feels empowered to be bold and get out of their comfort zones."

In addition to revenue growth, 64% of executives reported higher productivity and performance, and 58% noted improved employee engagement as a result of adopting a growth mindset. Despite these benefits, both executives and employees face barriers in its development, such as fear of failure and resistance to stepping outside comfort zones.

The study identified common challenges faced by those seeking to encourage a growth mindset, including dealing with negative feedback, facing criticism, and adapting to change. Ninety per cent of executives stressed the importance of leading by example to overcome these obstacles, while 87% highlighted continuous learning opportunities across the organisation as necessary. Additionally, 84% believe normalising discussions around failure is crucial to fostering a growth mindset.

There is, however, a discrepancy in perception between executives and employees regarding leadership embodiment of a growth mindset. Although 96% of executives claim they demonstrate this mindset, only 45% of employees agree. This gap signifies a critical area that needs attention for organisational success.

The report also touches upon concerns regarding the influence of generative AI on key growth mindset skills. Fifty-three per cent of executives fear that AI could impede the development of skills such as active listening, critical thinking, and time management. These findings indicate a need for a cautious and balanced approach when integrating AI into workplace processes.

Moreover, the study brings to light the emphasis employees place on growth and development opportunities. Fifty-two per cent indicated a willingness to leave their current jobs for another company offering more chances for continuous learning and progress. Arora commented on this aspect, stating, "It's a clear call to action for leaders: invest in your people's growth or risk losing them."