Managers - The Root of Employee Retention

Cathie Leimbach • June 28, 2022

Yes, it’s the manager who has the most impact on employee retention! 

Employees control only 30% of the factors that contribute to workplace engagement and retention. It’s the manager who controls the other 70%. Gallup’s book, It’s the Manager, introduces 52 insights into workplace realities that inform leadership practices which impact employee satisfaction, engagement, and retention. This article provides a high level look at why leveraging manager effectiveness is the best way to increase productivity and the organization’s bottom line.

For nearly a century the American dream was to have law and order, food and shelter. Once these were satisfied, people wanted to have a family, own a home, and live in peace. Now, in America and globally, the highest priority dream is to have a good job.  According to Gallup’s research, the most important contributor to the ‘best life imaginable’ – especially for young people and women – is to have a great job with a living wage and a manager or team leader who encourages your development. 

Unfortunately, only 15% of the global workforce reports having a great job. The reality that 85% are either just going through the motions or they hate their job has a negative impact on health, quality of life, organizational results, and the economy.   

Imagine the impact of increasing employee engagement to 50% of the workforce! How different individuals’ lives and our communities would be! But how can that possibly be done?

In the past 30 years workplace study after study has identified the factors that impact employee engagement. The biggest impact is how managers lead their people. Remember, managers control 70% of the variance in team engagement. Effective leadership practices have been identified, but few managers know about them. And even fewer put them into practice. 

Are your team members crystal clear everyday about what you want them to achieve? How often do you praise them for the things they are doing well? How encouraging and supportive are you when they need to improve their workplace performance? How skilled are you in these aspects of leading people?

What can you do to engage your employees for everyone’s benefit? If you would like to become a more effective leader at work, email me, Cathie Leimbach, asking for further information about developing highly effective people leadership skills. When you lead your team members well, they will become enthusiastic high performers. Don’t you want to experience this in your workplace? What difference would it make to your life?

By Cathie Leimbach July 7, 2026
Most leaders want better performance. They want employees who take ownership, meet expectations, solve problems, and continue growing. Yet many leaders seldom initiate performance conversations – and when they do, it doesn’t go well. Leaders often hesitate because they fear discouraging people. Employees, meanwhile, don't know if they are missing the target. This can be costly. Research highlighted in McKinsey's Courageous Conversations article found that organizations with strong performance practices are four times more likely to outperform their peers. Yet fewer than one-third of employees believe performance reviews actually help them improve. The problem is not just a lack of performance conversations. It's a lack of clarity. The article points to a simple but powerful distinction: separate the hardware of performance from the software of performance. The hardware includes facts, goals, KPIs, commitments, timelines, and standards. The software includes tone, timing, relationships, empathy, and intent. When leaders clearly explain the facts while delivering them with care and respect, employees become more receptive to improvement. Strong leaders don't judge people—they diagnose work.  They focus on behaviors, actions, and results rather than character. They clarify expectations, provide coaching, and create frequent opportunities for alignment. In high-performing cultures, clarity isn't viewed as criticism. It is viewed as support. As the article notes, "Clarity is a kindness, and ambiguity is a burden." Employees deserve to know where they stand, what success looks like, and how to improve. When leaders provide that clarity with dignity and respect, performance conversations become growth conversations. And growth is where better results begin. Download the Performance Conversations: Hardware & Software Checklist for Leaders and learn how to have everyday performance discussions that include opportunities for growth, accountability, and stronger results.
By Cathie Leimbach June 30, 2026
Most workplace tension doesn't come from major conflicts. It comes from too few conversations. A disappointment that was never discussed. A broken agreement that was never repaired. Appreciation that was never expressed. Over time, these "withholds" create friction that slows collaboration, weakens trust, and makes even simple conversations feel difficult. The strongest teams don't avoid tension—they address it early. Research highlighted in a recent McKinsey article found that unresolved tensions can significantly reduce team effectiveness, while high-trust teams consistently outperform their peers. The difference isn't the absence of problems. It's the willingness to talk about them. One of the most practical leadership habits is creating regular opportunities for transparent interaction. That includes appreciation. People should hear what they're doing well far more often than they hear about their shortfalls. Specific, genuine recognition builds trust over time. Those trust deposits matter because once positive relationships are built, difficult conversation are more likely to accept the message . When correction is needed, reinforce that you value the person, even though they aren’t perfect. The goal is growth, not judgment. But leaders should be careful not to make appreciation transactional. If positive feedback has been absent for months, suddenly offering praise immediately before a critique usually feels insincere. Trust is built through a steady pattern of recognition, encouragement, and honest conversation—not a last-minute compliment. Transparent leaders also address issues early. Small frustrations become large resentments when left unresolved. Teams that clear the air quickly spend less energy managing tension and more energy producing results. The result? Less friction. More trust. Stronger relationships. Better performance. Because healthy conversations don't just solve problems—they strengthen the team. Free Leader Guide: 5 Practices for Trust-Building Conversations The best leaders don't wait for tension to become conflict. They build trust before it's needed. Download our 5 Practices for Trust-Building Conversations guide to learn practical ways to strengthen relationships, reduce friction, and create a culture where honest conversations lead to better performance. Download the guide and start building trust one conversation at a time.