Retention Through Leadership: Creating a Workplace Worth Staying For

By Melissa Front

So, who or what is ultimately responsible for employee retention? Is it HR? Great benefits? Leadership? This is not a trick question. While HR and benefits certainly play a key part in employee retention, it’s ultimately the company’s leaders who are responsible. Effective leaders encourage a culture centered around trust, clarity, and engagement to foster a strong sense of purpose among their employees. When leaders veer away from this, culture suffers, employees become disengaged, and they may eventually decide to pursue opportunities elsewhere. 

It may surprise you to know that employee retention starts on day one. In fact, according to BambooHR, 70% of new employees decide if a job is the right fit for them within the first month of employment, and 29% make that decision in the first week—based largely on their daily experiences with leadership. Leaders can hold meetings and send memos about culture and direction, but it’s their actions that make the biggest impression. Employees watch what their leaders do every day, not just what they say. They observe who is hired, how teams are formed, and how leaders respond both in good times and when challenges arise. 

What should leaders do? Should companies create a formal culture program? While having a formal plan can be helpful in providing a roadmap for the team, the decision to stay or leave ultimately boils down to the everyday experiences employees have in their roles. Therefore, leaders need to be intentional with their actions. Here are three areas to focus on to increase retention: 

1. Build Your Team Beyond the Technical Skills — Many leaders think that an employee’s technical abilities are what will make them successful in a position. While technical skills are certainly a key component in hiring, hiring culture fits may be just as important. Team dynamics change every time a new employee starts, so leaders should reflect on whether hiring a particular candidate will add to the team culture or detract from it. When leaders hire employees who are a strong culture fit, they reap the benefits of improved communication and overall performance. Conversely, hiring someone who isn’t a good cultural fit can negatively impact the team and create distrust in leadership. 

   
   

2. Consistency Drives Culture — According to Entrepreneur, “Culture is shaped by what you reward and tolerate—not by what you say.” Leaders should focus on creating a culture centered around transparency and honesty and be deliberate about the things they reward and the things they ignore. Paying attention to where they’re spending their time—especially during unpredictable times—leaders can continue to foster a positive culture. Remember, employees are watching every step, so be thoughtful about where you’re walking and what you’re always doing, especially during times of volatility. 

   
   

3. Positive Energy Brings Positive Results — Think about it: if you’re surrounded by people who are positive and excited about what they do, doesn’t it feel good? Conversely, surrounding yourself with negativity can bring down your mood, energy, and overall outlook. Leaders have a responsibility to bring positive energy to their team. How do they do this? Through calmness and composure, tone of voice, body language, and focus. When leaders remain in control and maintain a calm demeanor, employees feel more comfortable in their roles and more confident in the organization. The opposite is also true. Leaders who are self-aware and intentional about their actions and energy will ultimately build a stronger culture and achieve far greater results.

Effective leaders understand that they play a significant role in retention and that their daily interactions are key components in building a solid culture. Employees are more likely to stay when they trust their leaders and feel part of an effective team. Leading in a way that inspires your employees to stay is the best strategy for improving retention. It’s time to ask yourself: Are you showing up for your employees every day in a way that makes them want to stay?