Maintaining great employees is a significant issue across all industries. It’s easy to think that the majority of departures are due to money, but the reality is much more complex. It is often the leadership that decides if the employee stays or leaves. The findings from around the world suggest that between 50-60 percent of employees quit for higher salary and growth. At the same time, a similar proportion, often more than half, says they leave due to poor leadership, lack of support or because the culture is toxic. The manager relationship frequently tops the list in exit interviews. The message is loud and clear; however, no amount of compensation will be sufficient if there is poor leadership.
Ineffective leadership depletes workplaces from energy as well as trust. If managers don’t guide, acknowledge the effort of others, make decisions easier, or show compassion, engagement slides and stress increases. People who were once involved start to lose interest. The higher pay is an incentive, an attractive chance that entices people to leave, whereas bad leadership can be an impetus by creating conditions that push away even though the job and pay are attractive. These factors are both immediately and are personal. This is the reason they can cause turnover. In a lot of cases, having an unsupportive supervisor is more damaging for the employee’s health than a pay increase could be offset. In this sense the management quality isn’t a nice thing to have, but a crucial retention tool.
Businesses that wish to retain talent should consider leadership capabilities as a top priority. Give managers specific feedback and run regular ones to one, establish the direction and eliminate obstacles. Establish authentic upward feedback channels to ensure that issues are identified quickly and can be addressed. Keep track of indicators like team turnover absence, team turnover, and internal mobility, to determine the areas of weakness in leadership support. The rewards are tangible with fewer exits, better performance and lower costs for replacement. Pay for competitiveness will always be important but it can’t make up for a lack confidence, respect or the care of leadership. One final question to ask every leader: are people moving on to better jobs or because the position was no longer worthwhile?
