People remain committed and stay in an organization for a host of reasons, but “employee engagement” is no longer a reliable predictor of which ones will.
A recent study of 3,000 workers, managers, and hourly team members across the U.S. and Canada revealed that job satisfaction no longer predicts retention very well. While a vast majority of those studied reported being engaged and satisfied at work, more than 40 percent anticipated leaving their jobs within the next year.
After decades of reliance on the measure of engagement as the key measure, organizations need a fuller explanation of why some team members choose to stay, and others depart.
The quality of the relationship between a team member and their direct leader or manager has emerged as the primary driver of retention.
While growth opportunities, work-life balance, and meaningful work remain essential for both engagement and retention, a solid and supportive relationship with their direct manager increases team members’ sense of trust, belonging, and commitment.
The best leaders and managers actively build connection with team members through feedback, recognition, support, and transparency. They not only invest in skill development and seek new opportunities for team members, but they also frequently discuss career paths and internal advancement to keep the focus on personal growth.
This makes people feel valued, which, in the end, is perhaps the most critical retention lever in the hands of a skillful leader.
Of course, compensation and benefits play an outsized role, but their effect is more dependent on manager support and connection than most organizations believe. Because that influence is underestimated, many organizations do a poor job coaching their managers about how to forge healthy, supportive, and candid relationships.
In fact, many organizations provide leaders with no training or structured learning on how to develop relationships with team members.
Here’s an indisputable fact: The daily team member experience is most shaped by the relationship each person has with their direct leader or manager.
Compensation, promotion, work flexibility, and meaningful work tied to a compelling vision all matter a great deal in explaining retention. But all are heavily influenced by the contact, support, and caring that team members experience from their leader.
So many retention factors are mediated or amplified by the manager-team member relationship that it is hard to believe how little focus it typically receives. As a rule, organizations must do more to close the relationship skill gap that so many leaders and managers carry.
How much attention and coaching about the manager-team member relationship exists in your organization?
Strong leaders and managers build staying power through the way they connect with others. The best retention strategy is almost always a better relationship.
