Why retention starts at the top
A 2024 Gallup workplace report found that 57% of employees who leave their roles cited their manager as the primary reason - highlighting an uncomfortable truth: employees don’t quit companies; they quit leaders.
When leaders fail to inspire, support, and engage their teams, the hidden costs ripple far beyond individual resignations - morale, productivity, and organisational culture all suffer. However, good leadership has the power to reverse the tide. By addressing the underlying causes of disengagement and adopting thoughtful, intentional strategies, leaders can transform workplaces into environments where employees don’t just stay - they flourish.
The hidden cost of leadership failure
Poor leadership doesn’t just erode team morale - it actually drains resources. The financial toll of turnover is well-documented, with some estimates placing the cost of replacing an employee at 1.5x - 2x their annual salary. But it’s the intangible costs - diminished team cohesion, reduced productivity, lost institutional knowledge and the time taken to restore it - that are even more damaging.
When leaders fail to connect with their teams or create environments where employees feel valued, it sets off a chain reaction:
● Disengagement: Employees disconnect or quiet quit - a ripple effect of lost motivation often rolls through entire organisations with productivity, and ultimately, the bottom line taking the biggest hit.
● Toxic cultures: Neglectful or micromanaging leaders will breed resentment and competition rather than collaboration amongst their teams.
● The turnover contagion: In environments like this, a single resignation can act like the first domino to fall - prompting others to follow suit, compounding the issue and magnifying all of those pre-existing issues.
Why retention starts at the top
What many leaders often fail to recognise is that retention doesn’t happen by chance; it’s built. Employees want to feel supported, understood, and inspired. The most effective leaders are the ones who create a foundation where employees feel naturally empowered by the trust placed in them. Getting there requires a thoughtful and intentional approach:
Shape the culture: The behaviours and attitudes of leadership sets the tone for the entire organisation. Leaders who model respect, transparency, and collaboration are going to instill those traits in their team.
Drive engagement: Employees are more likely to stay when they feel their contributions are valued and their work aligns with the company’s mission.
Enable Growth: Retention soars when employees see opportunities for development and feel their potential is being nurtured.
Lead for retention not recognition
Addressing retention issues after they’ve begun is a challenge, but it’s not insurmountable. Leaders will have to go above and beyond, ditching the quick fixes and focusing on cementing lasting solutions and rebuilding the culture.Here are three key strategies to start:
1. Prioritise psychological safety
Retention thrives when employees feel safe to speak up, share ideas, and take risks without fear of backlash. Actively and intentionally fostering psychological safety creates an environment where employees feel valued and heard.
How to implement it: Start by encouraging open dialogue in meetings, making a point of celebrating and welcoming diverse perspectives. When mistakes or issues arise, frame them as opportunities for improvement rather than failures.
2. Lead with empathy
Employees stay where they feel understood. Leaders who take the time to genuinely understand their team’s challenges and motivations build trust and loyalty.
How to implement it: Schedule regular one-on-one check-ins, ask questions that show genuine interest, and aim to tailor your support to the needs of the individuals in your team.
3. Offer clear growth paths
Stagnation is one of the fastest routes to turnover. Employees need to see a future within the organisation, with clear opportunities for advancement and development.
How to implement it: Take the time to develop personalised development plans, invest in training programmes, and celebrate internal promotions - reinforcing not only the organisation’s commitment to growth, but also your commitment to seeing your team thrive.
Leadership as the foundation for retention
Retention is more than just hanging on to employees - it’s about cultivating a culture where people are genuinely invested in the success of the organisation. And great leaders are the ones who don’t just manage outcomes; they inspire commitment, cultivate belonging, and build environments where people feel their contributions matter.
The hidden cost of poor leadership is too great to ignore. By embracing your role as an architect of workplace culture, leaders have the opportunity to not only retain talent but also to set the stage for innovation, collaboration, and long-term success.
At Acumen we’re dedicated to equipping leaders with the practical tools to tackle real-life challenges. Our comprehensive range of training and development programs, including customised interventions and off-the-shelf courses, help organisations foster a culture of respect and empower their employees.
To learn more about our programs and how they can benefit your organisation, please contact Simon at simon@askacumen.com.
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