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Abstract: This article discusses how leadership behaviors can inadvertently undermine employee engagement and drive top performers to seek new opportunities. It identifies five areas where leaders commonly fall short: lack of recognition and praise for good work, insufficient meaningful feedback, unclear career growth opportunities, poor work-life balance expectations, and deficient company-wide communication. For each area, research is presented on its importance for retention followed by an illustrative example of an employee who departed due to that specific deficiency. The article advocates for leaders to adopt strategies like regular praise, ongoing development-focused feedback, transparent career roadmaps, flexibility that respects personal well-being, and consistent messaging. When leaders make intentional efforts to strengthen these human aspects of work, it nurtures an environment where high-performing talent is motivated to stay committed to the organization long-term.
In today's competitive job market, retaining talented employees has never been more important for organizational success. However, many leaders unknowingly engage in behaviors that undermine employee engagement and ultimately drive top performers to seek opportunities elsewhere.
Today we will help leaders recognize how their actions can inadvertently push away their best people.
Lack of Recognition and Praise
A powerful yet underutilized tool for retaining top employees is recognition and praise. According to research from the Gallup Organization, recognition of a job well done is consistently one of the top factors that employees cite as important for engagement and loyalty (Harter et al., 2020). Unfortunately, many leaders fail to provide adequate recognition on a regular basis.
Research indicates a surprising percentage of employees rarely or never receive praise from their managers—even when performing at a high level (Heslin & VandeWalle, 2011). This lack of acknowledgment can leave top performers feeling underappreciated and demotivated over time. For example, a marketing director at a large tech company decided to leave her role after multiple years of working long hours and consistently exceeding her goals with little praise from her VP. She felt taken for granted and sought a new opportunity where her efforts would be better recognized.
Regular, specific, and sincere praise does not need to be extravagant to be effective. Simple acknowledgments like "thank you for all of your work on the Johnson project—I really appreciate you going above and beyond" can go a long way. Recognition also does not necessarily need to come from the top leader—immediate managers play a key role as well. Overall, leaders must make it a priority to regularly acknowledge their top talent verbally and in writing to keep them feeling valued.
Lack of Meaningful Feedback
While praise recognizes good work, meaningful feedback helps employees and their managers identify areas for growth and development. According to surveys from Deloitte, lack of feedback is a primary reason why employees consider leaving their current roles (Gallup, 2017). However, research shows only about one-third of employees strongly agree they receive helpful feedback regularly (Hanson, 2013).
For top performers especially, not receiving coaching on how to advance their skills and take on greater responsibilities can trigger dissatisfaction. For instance, an account director at an advertising agency decided to change jobs after multiple years of high achievements but little guidance on pursuing a new leadership role. She felt stalled in her career growth without feedback to guide her next steps.
Leaders must view feedback as an ongoing dialogue rather than an annual performance review checklist. Regular check-ins that include two-way discussion about strengths, weaknesses, goals, and new opportunities enable top talent to continuously learn and feel invested in their careers. For example, the CEO of a software company makes time each month to have guided conversations with direct reports focused entirely on development. This emphasis on coaching maintains employee motivation and ensures the company retains its top talent.
Lack of Career Growth Opportunities
Growth and advancement are critical drivers of employee motivation and retention. However, many companies fail to provide clear pathways for career mobility, especially as responsibilities increase. Research finds a lack of perception around growth opportunities is the top reason employees consider leaving their organization (Gallup, 2019).
For example, a seasoned project manager at an engineering firm sought a new position after realizing there were no open director roles he could progress into. He felt his skills were underutilized without a clear next step. While talent wish to stay loyal, staying static professionally can become demotivating over time without development.
Leaders must thoughtfully map out future career paths and successively greater challenges. One approach is to create “career ladders” that proactively outline the logical next levels employees can aim for as they gain experience and take on expanded duties. For instance, a regional bank provides employees sample roadmaps showing typical progressions from entry-level to manager to director based on competencies acquired. This transparency around career trajectories enables top talent to envision their long-term potential, maintaining motivation to improve.
Poor Work-Life Balance
Consistently long and unpredictable hours take a toll both physically and mentally. Research shows maintaining a reasonable equilibrium between work and personal time is one of the top drivers of job satisfaction (Bohle et al., 2018). However, many companies expect an "always-on" mentality without care for boundaries, harming both employee well-being and loyalty over the long run.
For example, an IT consultant decided to shift to a more flexible freelance role after years of late nights and weekends strained her personal life. While she loved the work itself, the unsustainable pace pushed her to seek an alternative arrangement. High-potential employees value meaningful work but will not sacrifice quality of life indefinitely.
Leaders should prioritize empowering flexibility and autonomy wherever possible. Google, for instance, officially encourages employees to freely block off time for "personal hours" each week to recharge. Setting clear expectations around availability, normalizing limiting off-hours communications, and encouraging employees to unplug all foster a culture where top performers feel respected as whole individuals rather than peripheral work units. This supports both mental wellness and retention of critical skills over the long term.
Poor Communication
Keeping employees "in the loop" through consistent messaging helps foster trust and loyalty to the organization. However, communication deficiencies often stem unintentional employee disengagement. Research finds a mere 20% percent of employees strongly agree they receive adequate information to do their job (Gallup, 2017).
For example, an account executive grew dissatisfied at an advertising agency after continual miscommunications caused client issues. He felt organizational changes and strategic decisions were not clearly cascaded down, hindering his ability to perform at his best. Diminished communication removes employees' sense of purpose and understanding of leadership priorities.
Leaders must dedicate effort to transparency and frequent updates. Weekly company-wide meetings detailing priorities, challenges, and successes help subordinates feel informed and invested in collective objectives. Some companies like Buffer also implement structures for transparent two-way dialogue, encouraging feedback and questions from all levels. Consistent communication maintains employee buy-in during both calm and turbulent times.
Conclusion
While retention usually depends on many interconnected factors, leadership behaviors play a significant determining role. Through intentional practices like meaningful recognition, ongoing feedback, clear career roadmaps, respect for work-life balance, and consistent communication, leaders empower top talent to excel and stay engaged over the long run. By recognizing how certain actions can inadvertently diminish loyalty, leaders gain insights on nurturing an environment where critical skills want to remain. Overall, prioritizing the human elements of the job will keep an organization's most valuable assets energized and committed for years to come.
References
Bohle, P., Willaby, H., Quinlan, M., & McNamara, M. (2018). Flexible work in call centres: Working hours, work-life conflict and health. Applied Ergonomics, 113-122. https://doi.org/10.1016/j.apergo.2017.08.008
Gallup. (2017, October). State of the American workplace. https://www.gallup.com/workplace/238085/state-american-workplace-report-2017.aspx
Gallup. (2019, January). How millennials want to work and live. https://www.gallup.com/workplace/238073/millennials-work-live.aspx
Hanson, A. (2013). Qualitative research case study: Employee performance management. Qualitative Research in Organizations and Management, 8(2), 208–223. https://doi.org/10.1108/QROM-04-2012-1098
Harter, J. K., Schmidt, F. L., Agrawal, S., & Plowman, S. K. (2020). The relationship between engagement at work and organizational outcomes. Gallup. https://www.gallup.com/workplace/236927/relationship-employee-engagement-organizational-outcomes.aspx
Heslin, P. A., & VandeWalle, D. (2011). Performance appraisal procedural justice: The role of a manager’s implicit person theory. Journal of Management, 37(6), 1694–1718. https://doi.org/10.1177/0149206310377775
Additional Reading
Westover, J. H. (2024). Optimizing Organizations: Reinvention through People, Adapted Mindsets, and the Dynamics of Change. HCI Academic Press. doi.org/10.70175/hclpress.2024.3
Westover, J. H. (2024). Reinventing Leadership: People-Centered Strategies for Empowering Organizational Change. HCI Academic Press. doi.org/10.70175/hclpress.2024.4
Westover, J. H. (2024). Cultivating Engagement: Mastering Inclusive Leadership, Culture Change, and Data-Informed Decision Making. HCI Academic Press. doi.org/10.70175/hclpress.2024.5
Westover, J. H. (2024). Energizing Innovation: Inspiring Peak Performance through Talent, Culture, and Growth. HCI Academic Press. doi.org/10.70175/hclpress.2024.6
Westover, J. H. (2024). Championing Performance: Aligning Organizational and Employee Trust, Purpose, and Well-Being. HCI Academic Press. doi.org/10.70175/hclpress.2024.7
Citation: Westover, J. H. (2024). Workforce Evolution: Strategies for Adapting to Changing Human Capital Needs. HCI Academic Press. doi.org/10.70175/hclpress.2024.8
Westover, J. H. (2024). Navigating Change: Keys to Organizational Agility, Innovation, and Impact. HCI Academic Press. doi.org/10.70175/hclpress.2024.11
Jonathan H. Westover, PhD is Chief Academic & Learning Officer (HCI Academy); Chair/Professor, Organizational Leadership (UVU); OD Consultant (Human Capital Innovations). Read Jonathan Westover's executive profile here.
Suggested Citation: Westover, J. H. (2024). Losing Your Best: How Poor Leadership Can Drive Top Talent Away. Human Capital Leadership Review, 14(3). doi.org/10.70175/hclreview.2020.14.6
