“People Leave Managers, Not Companies”—Is That Actually True?

Dry promotions and revenge resignations may not be a phase but could be something more.

The phrase “people leave managers, not companies” has a compelling reason for it to still resonate with many. A manager plays an influential role in an employee’s career – from orientations to assigning tasks to tracking and engagement – they are the closest representation of an organization’s culture. But is it fair to pin an employee’s resignation on the manager? Technically, no. And it is far more nuanced than it actually is.

The Bigger Picture

It is true that a manager can influence an employee’s reason to quit but there are other factors as well – unfair compensation, micromanagement, overall workplace culture, or even personal requirements. However, research states otherwise – even the best managers may not be able to retain a team if the larger environment is unsupportive or overwhelming.

A McKinsey study found that “uncaring and uninspiring leaders” were among the top reasons employees chose to leave, particularly in high-pressure or fast-growth sectors. Among the Indian companies where hierarchy is deep-rooted, a disengaged manager significantly impacts the overall morale.

The Power and Responsibility of a Manager

Speaking of managers, employees have stayed because of a supportive manager – one who heard them, supported them in times of need, and most importantly, recognized them for their work. This brings us back to the question – is it true that people leave managers and not companies? The answer would be both. An unsupportive manager may be one of the factors for attrition but not the only one; most often, they leave when they feel unheard or overwhelmed by micromanagement. The contrast between an engaged and a disengaged employee is often on how they are led – both in performance and retention. When companies invest in equipping their managers with required tools, they are in better positions to drive engagement.

What can organizations do?

For companies to reduce or prevent attrition, leadership should not be a role but a position that can significantly impact business outcomes. To begin with, they can think of the following:

  • Develop inclusive leadership training, focusing on communication and emotional intelligence.
  • Rewards and recognitions for employees, managers, and senior management.
  • 360-degree feedback mechanism for employees to share their experiences of leadership.

While people don’t always leave just their managers, a manager’s impact on retention is undeniable. So, for companies to attract and retain employees, the solution is not just training or altering the policies but creating an environment where individuals across levels can thrive. Want to know more about powering workplace cultures or leadership training? Please write to us at info@avtarinc.in.

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