Why great employees leave: the role of leadership
Losing a great employee can feel like a gut punch to any organization. It’s not just the disruption or cost of replacing them. It’s the loss of experience and stability they brought to the team.
Surprisingly, most of the time, the reason isn’t money or workload, it’s leadership. Studies consistently show that people don’t leave companies; they leave managers. In fact, around 70% of the difference in employee engagement is tied to the quality of leadership.
When leadership is strong, employees feel valued, supported, and motivated. They see a future within the organization. But when leadership falls short—through poor communication or lack of support—employees start looking for better opportunities. Great leaders make people want to stay, while poor leaders make them question their commitment.
This post will explore why leadership has such a big impact on retention and share practical ways to build a leadership style that inspires loyalty.
Leadership scenarios: How choices make or break loyalty
Sometimes the best way to understand leadership’s impact on retention is through realistic scenarios that reflect the challenges leaders face every day. Let’s look at two contrasting examples that highlight how leadership choices can make or break loyalty.
Scenario 1: When poor leadership drives people away
At a growing tech startup, a manager focuses heavily on performance metrics but rarely recognizes the team’s efforts. The team consistently meets deadlines and delivers successful projects, but the manager fails to acknowledge their hard work. As morale drops, talented employees start looking for jobs where leaders value their contributions. Within a year, half the team leaves. The manager, surprised by the turnover, realizes too late that recognition is essential.
Scenario 2: How thoughtful leadership keeps a team intact
At a mid-sized logistics company, high turnover among front-line employees causes major issues. A new operations manager changes the approach. He checks in with each team member weekly, listens to their challenges, and offers guidance. He also launches a simple recognition program where employees can nominate peers for their hard work. Within a year, the team reduces voluntary turnover by nearly 40%. Employees feel valued and motivated because their leader takes the time to listen and appreciate their efforts.
What these scenarios teach us
Leadership behaviors make a difference. Whether it’s failing to acknowledge effort or actively building connections, how leaders engage with their team directly impacts retention. Great leaders make employees feel appreciated and supported—and that’s what keeps people from leaving.
What leaders get wrong: The common mistakes that push people away
Even well-meaning leaders can make mistakes that drive employees out the door. It’s not always about bad intentions—it’s often small, consistent missteps that build up over time.
Here are some of the most common leadership mistakes that hurt retention:
- Lack of empathy: Employees want to feel understood and supported, especially when they’re facing challenges. Leaders who dismiss concerns or fail to check in regularly create a disconnect that erodes loyalty.
- Poor communication: When leaders don’t share important updates or fail to listen to feedback, employees feel left out and undervalued. Communication gaps make people feel like they don’t matter.
- Ignoring recognition: Everyone wants to feel appreciated. Leaders who rarely acknowledge hard work send the message that contributions go unnoticed, leading to disengagement and, eventually, departure.
- Micromanagement: Constantly controlling how employees work stifles creativity and autonomy. It shows a lack of trust, making talented people feel like they’re being babysat.
- Lack of growth opportunities: When employees can’t see a path forward, they start looking elsewhere. Leaders who neglect career development are essentially pushing ambitious people to move on.
The problem with these behaviors is that they can go unnoticed until it’s too late. By the time an employee leaves, it’s often because these mistakes have piled up over months or even years. The good news? With self-awareness and intention, leaders can address these habits and build a more loyal, committed team.
Practical leadership behaviors that inspire loyalty
Keeping great employees isn’t about grand gestures, but consistent, thoughtful leadership.
Here are some practical behaviors that build loyalty and make people want to stay:
- Show empathy: Make it a habit to check in, not just on work but on how your team members are doing personally. A quick, genuine “How’s everything going?” goes a long way. At Southwest Airlines, leaders prioritize personal connections, fostering a people-first culture that’s kept turnover remarkably low.
- Communicate openly: Be transparent about decisions, even when the news isn’t great. Regular updates—whether in team meetings or one-on-ones—keep employees in the loop and feeling valued. At Costco, consistent and honest communication builds trust and keeps employees engaged.
- Recognize and appreciate: Make recognition a routine, not just an occasional act. Whether it’s a simple thank-you email or a shoutout in a meeting, acknowledging hard work keeps morale high. Sam’s Club saw a significant drop in turnover when leadership made employee appreciation a priority.
- Support growth: Help employees envision a future within the company. Offer mentorship, training, and opportunities to take on new challenges. At ODW Logistics, leadership development programs cut turnover nearly in half because employees felt they were growing.
- Empower decision-making: Show you trust your team by giving them autonomy. Let them take ownership of their projects rather than micromanaging. When leaders at Redwire encouraged employee input, it led to higher engagement and lower attrition.
The key to these behaviors is consistency. You can’t just practice them occasionally, they need to be embedded in your everyday leadership style. Even small, regular actions that show respect and support can make a huge difference in how your team feels about staying.
Final thoughts: You have the power to build loyalty
Retention doesn’t happen by accident, it’s shaped by how leaders interact with their teams every day. Building loyalty isn’t about perfection; it’s about consistency. When you show empathy, communicate openly, recognize hard work, support growth, and empower decision-making, you’re creating a space where people feel valued.
Take a moment to reflect: Are you practicing these leadership behaviors consistently? If not, start with one small change today. Even a single shift can make a big difference in how your team feels about sticking around.
Leadership isn’t just about guiding your team internally. It’s also about sharing your vision with the wider world. At Column, we help leaders amplify their presence and share their story with the right audience.
From crafting LinkedIn content that resonates to building demand-driving campaigns, we make sure your leadership voice gets heard. Ready to take your message further? Reach out today.
