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Why Better Leadership Can Increase Employee Retention

Although rarely spoken in detail, increases, and decreases in employee retention within a business can negatively affect the bottom line. Understandably, we don't often hear about these cases because it's not something a business wants to promote. This has led future and current entrepreneurs to place little to no importance on this area. The following list will entail some of the ways why being a better leader can increase employee retention.


When you think of communication in a business sense, you may be thinking of the communication line between departments or a manager. However, the word over the years has become very one dimensional. The fact is that communication within a business environment also includes the praising of employee work and the simple act of listening. Data shows that often it is not the promise of a bonus or perks that make employees want to work harder and stay, but the simple act of being heard and appreciated. When it comes to keeping a low employee retention rate, a clear line of communication with your employees is what is required to accomplish this goal.

Employee Wellness

Employee wellness programs have quickly become the norm within many large corporations across the country. These programs have shown rapidly to improve retention rates within these companies. So, how can you implement wellness programs for your employees? Wellness changes are a great way to encourage a culture of employee wellness. Thus, the activity must be one that is enjoyed by most of your employees. A boring or too serious activity will deter engagement and abruptly destroy your attempt.

Promote Engagement

In a recent Gallup poll, an astonishing 73 percent of employees stated that they are currently feeling disengaged from their work environment and thus looking to change locations or entire careers. Those numbers demonstrate a serious problem within all industries. They show that some departments are getting more praise, work, and or benefits than others.

Although some departments do produce more than others in terms of what the company needs, that should not be an excuse to neglect the remaining people. An efficient company runs on everyone doing their work properly and effectively, not just one. Therefore, it is incredibly important that you make yourself visible within all your departments in order to encourage unity and engagement.

Improving retention rates doesn't need to be this incredibly difficult task to accomplish. The list above is a great way to begin improving your retention rate today with little to no money. All you need is the willingness and determination to do so.

Here’s another article you might enjoy: The Most Common Ways Entrepreneurs Accidentally Mistreat Their Team

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