A leader who possesses referent power earns the trust of others, which is crucial for effective leadership. Unlike commandable power, referent power is acquired over time on a case-by-case basis. In today's world, leaders who can consistently maintain the trust of their team members drive productivity, engagement, and retention of valuable talent. It has been widely proven that people often choose to leave or stay with an organization based on their relationship with their manager. Hence, the ability to inspire trust and build strong relationships is the cornerstone of effective leadership.