Midlands based HR specialists, Breedon Consulting, have backed a prevalent notion in the business world that employees don't typically leave the company they work for; they leave their managers, demonstrating that the influence of managers on employee retention and satisfaction has become increasingly evident.
In today's fast-paced corporate landscape, the significance of employee retention cannot be overstated. Over recent years the issue has gained prominence with the challenges posed during the Covid-19 pandemic reshaping the way employees perceive work-life balance.
Simultaneously, businesses have been grappling with the difficulty of attracting new talent, making it crucial to adopt proactive measures to enhance retention rates. The cost of doing so is significantly lower than the average cost of losing an employee which, in the UK, is *£30,614. A substantial figure that rises up to £100k for senior and specialist roles.
The costs associated with high turnover rates, both in terms of finances and lost productivity, have prompted organisations to review their working methods, benefit structures, and overall appeal to potential employees. However, Breedon strongly believes that it is essential to recognise that individual managers play a pivotal role in this equation.
A global survey** revealed that half of employees have left a job due to a poor manager. This phenomenon demonstrates the immense influence managers wield over an employee's decision to stay or leave. While money may play a role, it's often not the primary reason why employees consider changing jobs. Instead, the quality of management and the level of engagement within teams and the broader organisation tend to be the deciding factors. Effective managers who excel in these areas can significantly impact employee retention.
Breedon Consulting’s managing director, Nicki Robson, said: “Studies have shown that a significant percentage of the reasons employees leave their jobs are preventable. A lack of appreciation, for instance, that could be easily rectified by effective management, is cited as a key factor for employees seeking new opportunities. To understand the connection between managers and employee retention, it's crucial to identify the key management characteristics that inspire loyalty and commitment, such as integrity, active listening, transparency, support, and guidance.
“Employee retention is not a mystery; it's about empathy, open communication, trust, and effective leadership techniques. By focusing on these key areas and implementing them consistently, we create workplaces that not only attract talent but also retain it, allowing and encouraging both the employee and the business to thrive.”
*https://www.youthemployment.org.uk/youth-employment-uk-policy-work
** https://research.udemy.com/research_report/udemy-in-depth-2018-employee-experience-report/