How investing in leadership and management can boost attraction, retention and productivity

Businesses that develop the strengths of their staff have been found to reduce turnover by up to 72%: read our tips and guidance to find out how your firm can see similar benefits.

15 Feb 2022, 4 min read

Competition for talent has been intensifying, with people choosing to work for companies where they can make a difference and have opportunities to develop. Businesses that prioritise and invest in good management are more likely to lead engaged and motivated teams. At the other end of the spectrum, nearly half of UK workers say that a poor manager is the primary reason they are not happy in their jobs. The case is clear. In an environment where nearly half of businesses (48%) say retaining talent is a top priority for the coming year, firms that improve their leadership, management and people practices will find it easier to attract and retain talent.

Three areas your business should prioritise

1 - Communicate a shared company purpose to attract, motivate and engage employees

Businesses that communicate a clear organisational vision and purpose will find it easier to engage, attract and retain staff. Most employees, especially younger people, want to work for a business that is established in the community, contributes to social challenges or gives back. Beyond core values, businesses should develop a shared purpose, in consultation with staff. This purpose should be communicated, and firms should recognise people’s contribution towards it.

The C-suite at AkzoNobel, for example, engaged face-to-face with a third of its UK workforce to ask what people valued and how they thought their role contributed to the wider organisation. How line managers talk about the organisation’s purpose, role model its values and show how people’s work contributes to the business’ success is also central to this.

2 - Make people management a shared organisational priority

Change doesn’t happen without leaders’ focus. Establishing people as an organisational priority creates an environment where managers know they are expected to, and will be recognised for, how they engage and provide opportunities to employees - helping to create a workplace where people want to stay. Some businesses set explicit people objectives against which managers are assessed, or link objectives to managers’ remuneration and reward.

For example, Bristol Water has embedded organisational people objectives at every level of the business. It does so through bonus arrangements for staff that includes organisational goals, as well as personal goals linked to a set of cultural values. The overall focus on people has seen levels of employee engagement increase by 8%.

3 - Ensure managers have the tools to engage teams in hybrid working

Hybrid working is here to stay. Employee engagement is crucial to retention, and businesses should consider how to support managers as they adapt to managing and engaging teams who work in a hybrid way. Many companies are providing training or guidelines for their managers, helping them consider how to work effectively as a team in a hybrid world.

For example, Cromwell designed a new programme involving three 60-minute booster sessions for managers to understand the benefits of hybrid working, and drive high performance in hybrid teams

Member Case Studies

Learn how Macildowie focused on leadership training to fill key management gaps

Macildowie Recruitment has prioritised ways to create progression opportunities to help boost retention levels and shield themselves from the difficulties of recruiting high demand management skills in a tight labour market.

For more information please read the full case study

Discover how Northumbrian Water is working to strengthen their pipeline of talent

Northumbrian Water have introduced new practices and support for employees to boost internal mobility, helping to fill key skills gaps and improve retention.

For more information please read the full case study.

Learn how Qumodo focused on personal development days to boost retention

Qumodo is a technology company specialising in human interaction with Artificial Intelligence. As a small company that can’t always compete with the salaries of larger firms in the sector, Qumodo prioritises the non-wage benefits they offer employees, including flexibility, unlimited holidays, and fortnightly development days to attract and retain talent.