When it comes to retaining your best employees in today’s competitive job market, managers hold the keys to success. While competitive salaries, perks, and career opportunities are essential, the relationship employees have with their manager can make or break their decision to stay. In fact, Gallup research shows that 70% of the variance in employee engagement can be traced back to the manager. So, what makes managers such an influential force in employee retention - and what happens when this critical factor is overlooked?

Let’s dive into the problem, and most importantly, how you can address it.

The Link Between Managers and Retention

When employees leave, they often don’t leave the company - they leave their manager. Poor leadership, unclear communication, and a lack of understanding about individual team members' needs can erode trust and motivation over time.

But why does this happen?

At the core, it’s behaviour. Managers who fail to understand the behavioural needs of their team members - or worse, manage in ways that clash with those needs. - create environments where disengagement and dissatisfaction thrive. On the other hand, managers who adapt their leadership style to align with individual and team behavioural drivers foster stronger relationships, higher engagement, and deeper loyalty.

This is why behavioural insight is so important in retaining talent. It’s not about managing with a “one-size-fits-all” approach - it’s about understanding the unique motivators, values, and needs of each team member and adjusting accordingly.

Three Ways Managers Influence Retention

Let’s break down three key areas where managers have a direct impact on whether top talent stays or goes.

1. Clarity in Expectations and Growth Opportunities

Top performers thrive when they know exactly what is expected of them and how their role contributes to the bigger picture. They also want to see a clear pathway for development. Managers who understand their employees’ behavioural preferences can tailor feedback and career conversations in a way that resonates, inspiring motivation and commitment.

But when managers fail to provide this clarity, high performers often feel undervalued, overlooked, and unsure of their future. For them, stagnation is often a deal-breaker.

2. Team Dynamics and Culture

Managers are the custodians of team culture. A cohesive, supportive team environment doesn’t just happen - it’s built and maintained by managers who actively understand and align with the behavioural needs of their team.

For instance, if a team is made up of individuals who value structure and predictability, a manager who thrives on flexibility and chaos may inadvertently create tension. Over time, this misalignment can lead to frustration and departures.

3. Emotional and Psychological Safety

The best managers create a sense of psychological safety for their teams. This means fostering an environment where employees feel confident sharing ideas, taking risks, and even failing without fear of backlash.

Psychological safety is rooted in understanding how team members behave under pressure, how they respond to challenges, and what support they need to stay engaged. Without this insight, managers can unintentionally create stress and burnout, pushing their best people toward the door.

Questions to Ask: Are Your Managers Equipped to Retain Top Talent?

If you're in HR or L&D, consider these key questions to determine whether your managers are set up for success:

1. Do your managers have the tools to understand the behavioural drivers of their team members?
   Without these insights, it’s hard for managers to align their approach with what motivates their team.
2. How well do your managers communicate expectations and career opportunities to their team members?
   Are they providing the clarity top performers need to feel secure and inspired in their roles?
3. Are your managers fostering a culture of psychological safety?
   Do team members feel confident sharing ideas, taking risks, and collaborating without fear of blame?
4. Do your managers know how to adapt their management style to fit the needs of individual team members?
   Or are they sticking to a one-size-fits-all approach that might alienate certain team members?
5. Are your managers equipped to handle difficult conversations and resolve conflicts effectively?
   How they approach challenges can have a significant impact on whether employees feel supported or demotivated.
6. Have you invested in training your managers to lead effectively in a way that supports retention goals?
   Development is an ongoing process - are your managers getting the support they need?

Want More Insight?

If you had more "no" answers than "yes" to the above questions, our playbook "Retaining High Performers" is for you. In this resource, we will help you identify the gap between good and great managers, and outline a step-by-step approach to build core capabilities that drive exceptional management.

Download the Playbook Now →

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