The Thing That Matters Most for Retention and Engagement

If I had to name just one factor that makes or breaks employee retention and engagement, it would be this: a good manager.

Consider the data:

• Managers influence 70% of an employee’s motivation (Gallup).

• They’re the #1 reason employees leave their jobs.

• Research shows a manager’s impact on mental health is equal to that of a spouse or partner (UKG).

  
  

In other words, managers are the lever for culture, performance, and employee well-being.

So why aren’t more organizations investing in them? Honestly, I’m not sure. Because bad managers are expensive. Really expensive. Turnover costs anywhere from half to three times an employee’s annual salary. Disengagement drains another 34% of payroll. And poor managers are the biggest driver of both.

What Can We Do?

Organizations can start by:

1. Improving the selection process for new managers. More information here.

2. Investing in development – teaching proven habits that create great leaders. More information here.

3. Making tough calls when someone isn’t the right fit.

The 7 Habits of High-Retention Managers

I believe great managers consistently practice seven key habits (so much so, I wrote a whole book about it 😏). Here’s a snapshot:

1. Ignite Purpose

   People want to feel like their work matters. Managers can connect daily tasks to the bigger mission and help employees see how their work makes a difference.

   
   

2. Build Trust

   Trust is the foundation of retention and engagement. Respect, integrity, humility, vulnerability, and granting autonomy all build it. Without trust, long-term success isn’t possible.

   
   

3. Manage Yourself

   Self-awareness is step one. When managers understand their strengths, weaknesses, and biases, they’re better equipped to stay calm under pressure and respond effectively.

   
   

4. Be a Coach

   Employees—especially younger generations—don’t want “bosses.” They want coaches. Coaching means listening, giving feedback, guiding growth, and helping people solve problems, rather than fixing all the time.

   
   

5. Practice Accountability

   Without accountability, performance and morale suffer. High-retention managers use the 5 Cs:

   • Clarity of expectations

   • Courage to have tough conversations

   • Collaboration in goals and problem-solving

   • Consistency in fairness and follow-through

   • Correction when discipline or separation is warranted

     
     

6. Communicate Well

   Relentless communication (clear, honest, and repeated across channels) is essential.

   
   

7. Show You Care

   Great managers genuinely care about their people. This includes empathy, flexibility, recognition, and simple human connection.

   
   

The Bottom Line

Managers are the most important factor in whether employees stay, thrive, or head for the door. If you want to improve engagement and retention, don’t overlook them. Invest in them, and if it doesn't 'take', make difficult decisions.

And if you’re curious about those 7 habits in action, I won’t be mad if you check out my book. 😉

#employeeengagement #employeeretention #managers #leadershipdevelopment #hr #hrconsulting