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Leadership and Management · 2 min read

How Can Leaders Create Referent Power?

Learn how honest, collaborative, hard-working, decisive leaders with integrity gain referent power, boost team trust and drive higher performance. Act now.

Chris Farmer, Founder of Corporate Coach Group

“Referent power comes when leaders match words with action; they speak truth, share credit, work hard, decide with care and keep their morals sound, so teams trust them, stand with them and perform better.”

Chris Farmer — Founder, Corporate Coach Group

How Can Leaders Create Referent Power?

How Can Leaders Create Referent Power?

Referent Power refers to leaders' ability to influence others, based upon the team's positive opinions of their leaders' character, competence and moral standing.

Leaders who want to build referent power should be:

  • Honest
  • Collaborative
  • Hard working
  • Decisive.
  • Have integrity.

Referent power is the product of leaders displaying a consistent pattern of high-quality behaviours and simultaneously avoiding bad behaviours.

Referent power leaders consciously aim to build a track record that engenders feelings of commitment.

When leaders succeed in gaining the respect and commitment of the team, then they have acquired referent power.

Good leaders cannot demand referent power, instead, they must earn it.

What specific behaviours are the most potent builders of Referent Power?

Leaders who want to build referent power should always strive to be:

Honest.

Honest in two ways:

  1. Honest in terms of their communication. The referent power leaders are "straight talkers". They do not prevaricate, equivocate nor distort the truth.
  2. Honest in terms of property. The leader is "straight" in all financial affairs.

Collaborative.

Collaborative means that leaders recognise the value of other people's skills, knowledge and experience, and they work hard to gain the willing cooperation of their colleagues. Referent power leaders influence people to act, rather than merely issue orders.

Hard working.

Referent power leaders are energetic and hard working. Their work is mostly cognitive, and comes in the form of handing information, communicating goals and plans, and making high value, accurate decisions.

Contrary to popular opinion, great leaders do NOT have to be "on the front line getting their hands dirty". (For example, Winston Churchill was not amongst the men who stormed the beaches of Normandy: he was in London, directing operations.)

Decisive.

The primary role of leadership is to make good decisions.

Referent power leaders are decisive.

They do not dither.

They do not make bad decisions.

Referent power leaders make quick, rational decisions which are based upon a logical evaluation of all the available evidence.

Integrity.

Integrity means: There is no contradiction between a person's speech and action:

Referent power leaders have integrity:

  • They DO what they SAY they will do.
  • They don't SAY one thing and then DO the opposite.

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Referent Power

In business, referent power is a type of power leaders earn when their steady, honest behaviour wins deep respect. It rests on their good character and skill, not on job title. Team members freely choose to follow because they trust the leader, not due to fear or rewards. If the leader breaks that trust, the power disappears.

CG4D Definition

Context: Business
Genus: Type of power

  • Earned through steady, honest actions that win respect
  • Built on personal skill and sound morals, not formal rank
  • Works because people freely choose to follow, not from fear or reward
  • Falls away as soon as the leader breaks trust

Article Summary

Referent power comes when leaders match words with action; they speak truth, share credit, work hard, decide with care and keep their morals sound, so teams trust them, stand with them and perform better.

Chris Farmer, Founder of Corporate Coach Group

Written by Chris Farmer

Founder & Lead Trainer, Corporate Coach Group

Chris Farmer is the founder of the Corporate Coach Group and has over 25 years experience designing and delivering leadership and management training across both the public and private sectors. His programmes are structured, practical and built around real-world performance. Read more about Chris and the story of how the Corporate Coach Group was founded.

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Key Statistics

The 2024 Edelman Trust Barometer shows that 78% of workers will recommend their organisation when they believe their leaders act with strong ethics and purpose.

Gallup’s 2023 State of the Global Workplace report finds teams with high trust in leadership enjoy 23% higher profitability and 18% higher productivity than teams with low trust.

Frequently Asked Questions

Common questions about this topic

It is a form of leadership influence gained when team members respect a leader’s character and skill, so they follow by choice, not fear or rewards.
Referent power is earned respect based leadership influence; positional power rests on job title. Lose the title and positional power fades, yet referent power can last if trust remains.
Straight, truthful speech and fair dealing show integrity. When staff see no deception, trust deepens, and their voluntary support grows, giving the leader referent power.
Invite ideas, share decisions, and credit others. Such clear collaboration shows you value each person’s skill and builds commitment that strengthens referent power.
Yes. Leaders who process information quickly, set clear goals and solve problems show effort. Visible energy proves commitment and inspires the team, reinforcing referent power.
Timely, logical choices cut uncertainty and build trust in teams. When decisions are fair and evidence based, staff feel safe and judge the leader competent.
Keep your words and actions aligned, avoid ethical slips, keep learning, and correct errors fast. Break trust once and referent power vanishes.

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