Why you’re losing leaders (and how to retain them)

In today’s workplace, attracting and retaining talent is more critical than ever. The COVID-19 pandemic shifted workplace priorities, and workers are more prone to jumping ship if they feel unsatisfied. Retaining employees — especially current and potential leaders — is and should be a high priority for companies across industries. Learn more about why organizations lose their leaders and what they can do to retain them.

1. Burnout

One of the top reasons leaders leave their jobs is burnout. Many factors can cause burnout, especially long hours and stress that can compromise the work-life balance and lead to mental health issues. Burnout is one of the top reasons people leave their jobs, with a lack of boundaries around work and a piled-on schedule wearing down mental wellbeing.

Mitigating burnout in the workplace can be challenging, but keeping the best leaders on board is worth it. To reduce burnout, employers should focus more on their leaders and empathize with them as much as possible. Employees value authentic support and respect from their bosses.

Credit unions should let their leaders take adequate breaks and set reasonable boundaries between work and personal life. This is often an example set from the top down. Senior executives, for example, should restrain themselves from emailing junior employees at 8 PM or else they craft a culture where after-hours work is expected.

2. Disengagement

Another reason workplaces lose their leaders is disengagement. Employees may feel disengaged because they’re unmotivated, unchallenged and lack a genuine connection to their jobs. The eagerness these leaders showed on their first day may fade over time, or even quickly. A study from Gallup shows that employee engagement has dropped during the pandemic. Only 32% of workers are engaged, with 17% actively disengaged.

Disengagement in the workplace can be costly due to dips in productivity and morale. Workplaces should find ways to increase engagement and keep their employees focused. For example, employers could create bonus programs for the highest-performing leaders and teams. Companies can carve out time for special parties, game nights and other ways for employees to enjoy themselves.

3. Workplace Culture

For many leaders, workplace culture is a high priority. How colleagues interact, give criticism and care for each other often determines how engaged employees are and their burnout level. A poor environment can quickly wear down leaders and push them to look elsewhere. A 2022 survey from FlexJobs shows that 62% of people who quit their job did so because of toxic company culture.

Workplace culture is crucial, and fostering a positive environment helps retain employees for years to come. The first step in building a conducive climate is transparency. Employers should be open and honest with their leaders about any developing situations. Building trust is vital to building genuine relationships across the organization.

Companies should also create as many positive experiences as possible. For example, they could ensure hardworking employees get the recognition they deserve. A study from Gallup shows that organizations with fulfilling employee recognition have up to 90% less burnout, and workers feel like they belong.

4. Growth Opportunities

Many leaders are thinking about their future career paths. They may love their current position, but some are looking for more prominent roles within the organization — or outside of it. Advancement opportunities are critical for retaining leaders. The most talented leaders may look elsewhere if they can’t progress at their current organization.

Lack of advancement opportunities is the second-highest reason workers left their jobs, with 63% of workers citing it as a major or minor reason. Supporting leaders as they grow at work is critical because it shows the employer cares and wants to see them grow professionally.

Employers can promote career development by creating ongoing training programs like development workshops, strategy groups and mentorships. Even when formal opportunities aren’t there, informal ones like mentorship from senior leaders can help employees navigate paths forward and feel connected in the organization.

Growth is both a cultural value that can be fostered and a structural element that can be officially built up. Companies should embrace growth to get the most out of their employees and keep them motivated to stay.

5. Flexibility

The pandemic has changed how people worldwide view the workplace. In early 2020, many companies sent their employees home to reduce virus transmission. Though some returned to the office, many continued working remotely, even years into the pandemic. Employees enjoy flexibility in their hours and working situation.

The traditional nine-to-five job in the U.S. is slowly fading away. Workplaces function better when leaders can set their hours because they know their best productivity times. Employees may feel boxed in if they follow strict working hours. Flexibility allows them to plan around appointments and their kids’ weekly schedules.

This freedom also leads to higher productivity and morale. A Gartner survey reveals 43% of employees are more productive with flexible hours — and 30% of respondents said flexible working arrangements increased their productivity because they shortened or eliminated their commute time.

Attracting and Keeping the Best Talent

The Great Resignation caused a reshuffling of workplaces worldwide. Employees left longtime positions for many reasons, including burnout, workplace culture and lack of flexibility. Employers should conduct exhaustive exit interviews and pinpoint why their leaders have left. Then they should make a concerted effort to implement measures to keep their top talent.