People Quit Bosses, Not Companies

With the War for Talent raging, this may be the most under-discussed retention fact: most people leaving their organizations are quitting their bosses, not their companies. Most of us have heard this statement at some point, and it turns out to be true. A 2020 Gallup survey showed that 54% of employees who have quit their jobs over the previous 12 months have done so to get away from their bosses. Just this week, the 2021 Predictive Index People Management Report found that 63% employees with a bad manager are thinking of leaving their company within the next 12 months.?

Still more research shows that the people who quit jobs are often the most valuable employees.?They're people who feel like they deserve a certain kind of treatment and engagement at work, these are people who have options. To compete in today's hyper-competitive talent marketplace, organizations need to acknowledge and respond to the real reasons great people are leaving their organizations.

Here are the top five reasons people quit jobs:

1. They don't want to work with their boss or manager
2. They want more opportunity for advancement
3. They want a better work/life balance
4. They want to earn more money
5. They are unsatisfied with the work environment

Look closely at this list. You could argue that four of the top five are actually just different ways of saying they need better leadership, and compensation wasn’t even in the top three! Exceptional leaders know that you can’t buy employee engagement or loyalty, they have to be earned.?Retaining talented people comes down to leadership. The impact of great managers and leaders on retention and development surpasses any other job attribute.

Let’s review the primary ways that poor leaders can repel great people:

• They Lack Humility?- Making them unapproachable and less likely to recognize the excellent performance of others. Egoism in management repels great people.
• They Fail to Engage People’s Creative Sides?- Making people feel less inspired and underutilized. Everyone wants to create and develop, and every role should allow for it.
• They Fail to Develop People’s Skills?- Underestimating people’s ability and potential. One of the best definitions of leadership is "people get better on your watch". They should not have the same skill sets and capabilities they had when they arrived.
• They Hire and Promote the Wrong People?- Favoring people who are more like them, instead of people more likely to excel. Unconscious and conscious biases in hiring is a performance risk, and your high-potentials won't stand for it.
• They Undervalue Diversity & Inclusion?- Failing to harness the power of the collective and the value of differences.?All of the studies have told us the same thing: diversity pushes up the performance lid on any team.
• They Fail to Share a Compelling Vision?- Robbing people of enthusiasm and purpose for their work. Even the smallest department or branch can have a compelling vision driving their work. It's your job as a leader to make sure everyone knows why their work matters.

Think about this list, especially if you are a manager of people. The great thing about all the missing leadership attributes listed, is that they're all learnable.?A learning leader or manager could improve on any or all of these leadership skills with some real intention and focus. The bottom line: If you want fewer great people to quit you in the future, it may be time to make some positive adjustments to your leadership approach.

-Wally Schmader - August 18, 2021