How to Effectively Increase Employee Self-Efficacy: A Key Skill for the Future of Work
People are different. We experience this daily—both professionally and privately. For instance, we repeatedly notice that some individuals, when faced with new challenges, immediately think: "I can't do this." Consequently, they approach the task unmotivated, and their chances of success are low.
Others, however, faced with the same challenge, might initially think: "Oh no." But then: "I'll manage somehow." So, they tackle the task with full vigor. Usually with success—also because they don't give up after the first failed attempt.
Such confidence is becoming increasingly important. In our modern world, we are constantly confronted with new challenges. Thus, the ability to deal with them adequately is becoming a key competency. Companies have recognized this too. They increasingly expect their employees to face and master new challenges; furthermore, to proactively acquire the skills they (will) need in their profession. In other words: Employees should be more self-efficacious—regardless of whether they work on-site, from home, or elsewhere.
What is Self-Efficacy and Why Does It Matter?
Self-efficacy is the belief in one's own ability to succeed in specific situations or accomplish a task. It's a core component of psychologist Albert Bandura's social cognitive theory. In the workplace, high self-efficacy translates to employees who are more resilient, proactive, and better at problem-solving. They view challenges as opportunities to learn rather than threats, leading to higher employee engagement, innovation, and overall workplace productivity.
The Four Sources of Self-Efficacy
According to research by the late Canadian learning theorist Albert Bandura, our self-efficacy is primarily fueled by the following four sources:
- Mastery Experiences: Past successes build a robust belief in one's capabilities. Successfully overcoming challenges is the most effective way to strengthen self-efficacy.
- Vicarious Experiences: Observing others, especially peers, successfully completing tasks can strengthen the belief that one can also succeed.
- Social Persuasion: Encouragement and positive feedback from others, such as managers, mentors, or colleagues, can help individuals believe in their abilities.
- Physiological and Emotional States: Our physical and emotional condition influences self-assessment. Stress and anxiety can undermine self-efficacy, while a positive mood can enhance it.
Practical Strategies to Boost Your Own and Your Team's Self-Efficacy
If you want to increase your self-efficacy, you should regularly take on challenges where you initially suspect: "This task might overwhelm me." This is how we grow. It makes sense to treat such tasks as a project and first analyze: What subtasks are involved? This allows us to determine why we shy away from certain subtasks. For example, is it because we have no experience with them? Or because...? Knowing this, we can organize the necessary support. Furthermore, we can derive sub-goals from the subtasks that need to be achieved on the way to the main goal.
Defining sub-goals is important in case we only partially achieve the project goal. Then we can use the achieved sub-goals to determine which subtasks we solved brilliantly and which we did not. We can thus relativize our "failure." Additionally, we can analyze what new skills we have acquired and where there is still a learning need. When we approach challenging tasks in this way, we enter a learning spiral that leads to a steady expansion of our competence and self-efficacy.
Leadership Application: Fostering Self-Efficacy in Your Team
You, as a leader, can also use this learning theory insight if you want to enhance the competence and self-efficacy of your employees. You should then repeatedly assign them tasks about which they initially think, "I can't do this." At the same time, you should always provide them with the necessary professional and emotional support they need to accomplish these tasks. This leads to a gradual increase in your employees' self-efficacy and competence—which, in the medium and long term, also relieves you as a leader.
Effective leadership development today requires creating an environment where calculated risk-taking is safe and failure is viewed as a learning step. This involves:
- Setting Stretch Goals: Assign projects that are slightly beyond an employee's current comfort zone.
- Providing Scaffolded Support: Offer guidance, resources, and mentorship without micromanaging.
- Celebrating Effort and Learning: Recognize not just outcomes but the process, perseverance, and new skills gained.
- Modeling Vulnerability: Leaders sharing their own challenges and learning journeys make it safe for others to do the same.
By systematically applying these principles, you build a resilient workforce capable of adapting to change, a critical advantage in today's fast-paced business environment.
About the Author:
Barbara Liebermeister heads the Institute for Leadership Culture in the Digital Age (IFIDZ) in Wiesbaden. She is the author of the book "The Leader as Influencer: How to Win Employees as Followers." She also hosts the podcasts "Digital is irrelevant... What counts is YOU!" and "Business Secrets: Why Women Get Liked and Men Get Followed!".