It’s one of the most well-known phrases in the world of work, and one of the most accurate: People don’t leave jobs. They leave people, meaning leaders.
No matter how strong your benefits, how flexible your schedule, or how aligned your mission is, if your people don’t feel supported by leadership, they’ll eventually walk. And when they do, the cost to your business is more than just inconvenience.
At HR Experts on Demand, we often work with clients who are experiencing high turnover, only to discover that the issue isn’t related to compensation or flexibility, but leadership. More often than not, it’s not bad intentions that cause the problem; it’s untrained or unsupported managers who aren’t equipped to lead teams effectively.
According to a 2023 Gallup report, 70 percent of the variance in team engagement is attributed to the quality of the manager. In other words, your leaders are a reflection of your culture.
If employees don’t trust their direct supervisor, feel micromanaged, or aren’t being developed or heard, they’ll look elsewhere. This is especially true in small to mid-sized businesses, where the relationship between employee and manager is often more direct and personal.
The good news? Unlike job markets or economic shifts, leadership is something you can control.
The Cost of Replacing an Employee Is Higher Than You Think
Let’s talk about what happens when people do leave.
Studies estimate that the cost to replace an employee ranges from 50% to 200% of their annual salary, depending on the role. That includes:
- Recruiting costs
- Onboarding and training
- Lost productivity
- Knowledge loss and impact on team morale
For leadership positions or highly skilled roles, the costs can be even higher, not to mention the ripple effect one departure can have on a small team.
Investing in your managers is one of the most cost-effective and worthwhile strategies for talent retention. Yet leadership development is often the first thing cut when budgets tighten.
Not Every Great Employee Is a Great Leader—Yet
One of the most common challenges we observe is that high performers are promoted into leadership roles without the necessary tools or support to succeed.
Leadership requires a distinct set of people skills, including coaching, conflict management, delegation, and emotional intelligence. Without training and ongoing feedback, even the most promising managers can become overwhelmed, and their teams can suffer as a result.
At HR Experts on Demand, we often step in to provide customized leadership coaching and DiSC assessments that help new and seasoned leaders alike understand how to lead with clarity, confidence, and connection.
Because we’re embedded in our clients’ operations—holding office hours, attending team meetings, and building genuine relationships—we see the day-to-day leadership challenges that surface. This allows us to offer support that is timely, personal, and deeply relevant.
Support Your Leaders So They Can Support Your People
No one is born knowing how to lead well. It takes time, support, and a clear understanding of expectations. The companies that retain top talent are those that invest in their leaders, not just as taskmasters, but as culture carriers.
If you’re seeing signs of disengagement or turnover, don’t just look at your benefits or hiring process; consider the broader context.
Look at your leadership bench.
- Are your managers trained in coaching and communication?
- Do they know how to have development conversations, especially the tough ones?
- Are they equipped to navigate change and conflict?
Taking time to invest in how your leaders lead is one of the most powerful ways to strengthen your culture from the inside out. Every employee deserves a manager who sees their potential, and every business deserves leaders who know how to bring out the best in others.
Unlike remote HR platforms or one-size-fits-all programs, our clients receive a strategic partner who is just a phone call or office hour away.
Whether you’re a team of five or one hundred and five, we are here to help!
Let’s strengthen your leadership bench with customized, high-touch support. Reach out today to learn how our strategic HR solutions can help your team thrive.
