1. Leaders and Corporate Culture –
The Impact They Have on
Employee Retention and Development

3. Why are there some organizations that constantly lose employees
while others are able to retain some of the country’s best talents
for years? Is it because of lack of compensation? Is it because they
do not offer their employees an opportunity to grow? Or did these
former employees find their jobs boring and unchallenging? These are
extremely important questions that companies and their leaders must
have the answers to as quickly as possible, if they want to attract, retain
and develop the next generation of leaders. This is especially true in
today’s fast changing environment wherein employee retention has
been a challenge for most companies including those deem to be most
innovative or listed as best places to work.
Organizations that are consistently experiencing employee resignation
letters should already realize that there is something wrong. There
is a plethora of possible reasons for poor worker retention rate, and
those that have been mentioned above are just some of them. In fact,
those that have been previously stated do not even make it to the top
5 most common reasons as to why employees leave. And while it is true
that there are some reasons for leaving that are beyond an employer’s
control, most people leave their jobs because of the overall quality of
corporate culture they face every day.
The goal of this paper was to examine the factors that contributed to the
decision of employees to leave their current jobs and look for another
employer. The results of the research, which have been detailed here,
reveal the ten main reasons why workers quit. In addition to tackling the
important issues in the workplace that affect an organization’s rate of
employee retention, it also provides insightful information that can be
used by employers to improve their employees’ engagement. Recent
research shows a direct correlation that happy employees are more likely
to have higher productivity, improve performance and a lower number
of employee turnover.
10 Most Common Reasons for Employees
Leaving their Jobs
According to the United States Department of Labor, the monthly
average number of people who quit their jobs from February 2012 to
September 2014 was 2,000,000. If this trend continues, not only will the
rate of unemployment rise; organizations will also be forced to hire
people who are not that suitable and qualified for the job. They would
have to do this just so that they can fill the position. This may result in
reduced work quality, poor morale, and low job performance, which may
then affect a company’s overall bottom line.
Employers need to know the reasons why they lost talent. This will help
them come up with an approach that will resolve the issues that led
to these workers quitting their jobs. So what are these reasons then?
1Leaders and Corporate Culture – The Impact They Have on Employee Retention and Development
Leaders and Corporate Culture –
The Impact They Have on
Employee Retention and Development
2 Million
Employees
quit monthly
according to
U.S. Department
of Labor

4. According to Forbes, a great percentage of the working sector is just
simply not happy with their current jobs. In fact, a Harris Interactive
study, which has been cited in the same article, has revealed that 74% of
the employed sector during that time would consider looking for a new
job. And in light of the growing concern on poor employee retention,
Accenture has conducted its own study to find out the reasons why
people are leaving. The following are the 10 most common reasons why
talents file for resignation.
1. Lack of Appreciation – The vast majority of workers who have resigned
say that not being appreciated is their main reason for leaving. 43%
of the group that Accenture has studied say that lack of recognition
or appreciation is what makes them unhappy with their current jobs.
It is important for employers to make their employees feel special,
especially those who truly deserve it. This should not only be in terms
of compensation; it should also include rewards and recognition.
2. Lack of Recognition – Most individuals have this inherent need to
know exactly how they are performing. This is only logical since they
want to experience growth in their careers. One of the key aspects
that make talent management exceptional is the provision of regular
employee recognition in areas that deserve praise. If an employee is
not or barely recognized for his/her contributions, the company that
he/she is working for can expect to lose a talented worker.
3. Lack of Growth/Advancement – Most, if not all employees aim to go
through career growth and possible advancement in their positions.
According to research, one of the top priorities of skilled employees is
the chance to grow and develop their skills further. In fact, 31% of the
participants in the Accenture study said that lack of empowerment
is their reason for their dissatisfaction at work. This is because most,
if not all working individuals aim to go through career growth and
possible advancement in their positions. However, if they are given
the same tasks over and over again, they will not be able to reach this
goal. In order for a company’s employee retention rate to increase,
managers have to work with their team members and come up with
sufficient career development plans. This way, their top talents will
have something to look forward to.
4. Bad Management – There is something wrong with the relationship
between an employee and his/her supervisor. Many employees just
quit their jobs because they no longer want to work for a bad boss
or they have no respect for the leadership team. 31% of the working
sector said that bad relationships with their bosses are their reason
for leaving or considering quitting. 35%, on the other hand, had/have
problems with the company’s internal politics.
2 Leaders and Corporate Culture – The Impact They Have on Employee Retention and Development
Bad management creates active
disengagement that cost the U.S.
alone an estimated $450 billion annually

5. 5. Boredom – Employees who are given unchallenging tasks get
easily bored, since they are not able to employ their skills and
knowledge to the maximum. It is important that your top talent are
given opportunities to be challenged and they enjoy what they are
doing. This is why implementing effective employee engagement
procedures are a must in the workplace.
6. Poor Salary – Many employees quit once they realize that the
compensation they are being given is below what is the market
standard. They believe that they can make more money by looking for
another job. This is especially true for positions that are very difficult
to fill – companies need to make sure that they properly compensate
their employees or they will lose them to their competition.
7. Conflict with Fellow Co-workers – The relationship that an employee
has with his/her co-workers can also lead to problems that may result
in resignation. According to the Census of Fatal Occupational Injuries
(CFOI) between 2006 and 2010 an average of 551 employees were
killed as a result of a work related homicide. It is important for leaders
to address conflict when it arises.
8. Work/Life Balance – This reason is sometimes outside of an employer’s
control. However, through the enforcement of correct talent
management procedures, such as working on a compromise in terms
of work load and schedule, organizations may be able to counter the
decision of their top talents who are about to leave by supporting
them in achieving work/life balance.
9. No Accountability – Corporate leaders always talk about autonomy,
independence, and empowerment. However, those that are in the
position of leadership need to understand that these are qualities that
a person needs to pursue on his/her own. In other words, they cannot
be given by those above them. What leaders should do instead is to
ensure that they are able to work in an environment that allows them
to foster these qualities.
10. Poor Communication – Communication plays an important role in
the lives of human beings, and without this, problems will begin
to arise and resolutions will not be developed. Communication is
essential for building trust, respect, rapport and a winning culture.
Therefore, it is the responsibility of an organization to ensure
that the workplace, particularly its corporate culture, develops
excellent communication. Companies that excel with attracting and
maintaining top talents are those leaders who inspired through their
communication skills. They are able to ignite and empower their
team to reach for higher heights, to believe the impossible and to
dominate their industry.
3Leaders and Corporate Culture – The Impact They Have on Employee Retention and Development
87% of C-Suite Executives
recognize that disengaged employees
are among the biggest threats to their business
CEOCOO
OCIOCEOCFOOO

6. When corporate leaders pay attention to all of these factors, their
employees, especially those that they consider as the company’s best
talents, will no longer feel like they would be better off working for
someone else. It is also crucial for employers to monitor the reasons
why their employees leave, particularly those that have something to do
with problems that arose from the workplace. Being able to establish
resignation patterns and creating methods to deal with these issues are
critical to preventing the loss of an organization’s best talents.
What Employee Engagement is and the Important
Roles It Plays
Inanutshell,employeeengagementisanapproachusedbyorganizations
to make certain that all of its members are dedicated to the goals
and values of the company. It is designed to motivate employees to
become contributors to the success of the institution. Furthermore, it
is employed by corporate leaders to ensure that its team members are
able to improve the sense of well-being they feel and experience.
When an organization makes use of the right tools and methodologies
in its employee engagement strategies, it can expect to deal with higher
rates of productivity, reduced workplace conflicts, decreased accident
rates, better employee retention, fewer incidents of sick leaves, and
more innovation.
Impressively-engaged companies are those that have strong and
intrinsic values. The leaders of such organizations strive hard to show
proof that there is fairness and trust in the workplace.
However, it is important to note that engagement is not a one-way
approach. Of course, it is the responsibility of the organization or the
employer to engage all of its employees. Employees, on the other hand,
should also be direct when it comes to choosing how engaged he/she
will be. If the employee is happy and satisfied, employers can expect to
be provided with the exceptional performance.
So how should companies keep their employees engaged and
committed to the mission, vision, and goals of the organization?
One is to focus on the skills crucial to management and leadership as
well as the basics of proper management. Corporate leaders should host
programs that are designed to enhance their talents’ abilities in terms
of interpersonal skills, consulting, engaging, communicating effectively,
and handling difficult conversations.
Recognizing your top talent early is a key element of employee
engagement. Once a supervisor or a manager notices significant
contribution from an employee, appropriate recognition should be
given. Career growth plans, which may include executive coaching,
4 Leaders and Corporate Culture – The Impact They Have on Employee Retention and Development
Gallup Poll reports
of employees
are disengaged or
actively disengaged.
Engaged
Disengaged
Actively
Disengaged
70% 18%52%
30%

7. should be considered. This way, talents will feel that they are valued by
the organization they are part of, and thoughts of leaving will not come
into mind.
Rewards are some of the other critical aspects of excellent engagement
strategies. When companies evidence their appreciation of a talent’s
contribution through rewards, that particular employee will feel special
and will strive even harder to reach his/her goals. As a result, both
parties benefit.
Leading Multi-Generations in the Workforce
According to the Forbes Magazine, there are four different generations
in today’s workplace. These include the Traditionalists, the Boomers, the
Generation X, and the Millennials. Each of these generations has its own
values and goals, things that corporate leaders should understand and
base their approach for employee engagement on.
In order for organizations to operate seamlessly and flawlessly, it needs
to come up with different management approaches for the multi-
generations in the workplace. Some of the most effective methods to
handle these generations are the following:
1. Recognize the experience of traditionalists and understand that their
hard work may often come with some level of flexibility. For many of
them, recognition and appreciation are enough to make them stay. Most
traditionalists no longer aim to further their careers because of age.
2. Respect the belief of boomers that they deserve to be given individual
value, they are special, and they should be provided with good
compensation. Recognizing their contributions and being rewarded
for it is what characterizes this generation. Individual, executive
coaching is a way to engage this group.
3. Provide the Generation X with the flexibility to perform their tasks in
their own unique ways and expect that usual employee engagement
tactics normally will not work for them. There is considerable talent in
this generation, so in order to retain them, corporate leaders need to
be somewhat more relaxed in the talent management rules that they
enforce on the group.
4. GroupMillennialswithpeoplethattheyconsiderjustassmart,devoted,
committed, and social as them. This generation believes that they
deserve to be recognized and appreciated for every contribution they
make, and failing to do so will result in them becoming disengaged.
In order to handle this group properly, leaders have to make it a point
to praise and reward them, while still ensuring that they do deserve it.
Leadership development is crucial for this generation.
5Leaders and Corporate Culture – The Impact They Have on Employee Retention and Development
By 2025 3 quarters (75%) of the workforce population
will make up the millennials
75%

8. How Leading Companies Attract Talent and
Retain Them
Attracting the right talent is one of the greatest challenges that
employers are regularly faced with. So when they find exactly who they
are looking for, they need to make certain that they do everything to
create a sense of loyalty to the company. While it is true that paying
hardworking, skilled, talented, and purpose-driven people is a must, it
is no longer enough to retain them. In today’s market, corporate leaders
should offer not only appropriate compensation, but also meaning.
This is especially true with the generation known as the Millennials.
According to a Deloitte study, this group will make up three quarters
of the entire workforce population come year 2025. The individuals that
comprise this generation say that the organizations they would want
to work for are those that put emphasis on innovative thinking, skill
development, and societal contribution. In addition, Millennials also
prefer to become part of companies that make leadership development
one of its top priorities.
With the Millennials being forecasted to make up 75% of the workforce
population a decade from now, companies should begin incorporating
strategies built around the beliefs of these individuals. Corporate
leaders should understand that this generation has strongly believes
that organizations can do more than what they are currently doing to
positively impact the society. For corporations to attract the best talent,
particularly those who belong in this generation, being knowledgeable
of the problem areas that the Millennials think should be addressed will
be of great use.
Resource scarcity (68%)
Climate change (65%)
Income equality (64%)
Ethical business practices (50%)
With all this being pointed out, how do companies go about attracting
talent and retaining them?
Corporate leaders should:
• Recognize skills and talents and reward their people for their
contributions. Leading organizations have a complete grasp on what
motivates its people to work hard not only for themselves but for the
good of the company as well. They understand the differences in each
generation and tailor the approaches they have to each. They adjust
the recognition programs and rewards that they provide to those who
deserve them.
6 Leaders and Corporate Culture – The Impact They Have on Employee Retention and Development

9. • Acknowledge the existence of shared needs. Everyone wants to be
respected and to feel that they are contributing something to the
good of the organization they work for. This is why leading companies
build their winning corporate culture on the understanding of shared
needs and strive hard to ensure that these are fulfilled.
• Focus on employee engagement strategies designed to foster
teamwork while still ensuring that each member performs
individual tasks.
• Have a mission that encourages, inspires, and motivates
everyone involved.
• Empower employees to step out and think outside the box. They
highlight the importance of using technology while still making sure
that the traditional beliefs of each worker are not stepped on.
• They address concerns before they transform into more serious
problems. Bureaucracy and politics are always approached with
caution or eliminated altogether.
• They constantly update their employee engagement methodologies,
which include further innovative and enhanced leadership
development, executive coaching, and talent management programs.
This is especially true for one out of four Millennials, who, according
to the Deloitte study, want to be able to display their leadership skills.
Nurturing and developing future leaders is one of the key priorities of
leading companies that enable them to attract and retain talent.
• Theyrewardtheirpeoplewithmorethanjustmoney.Leadingcompanies
have long since realized that using just money to reward the people
who have displayed considerable contribution to the organization
is not enough to make them stay. Of course, these companies still
compensate their best talents with higher than normal compensation,
but they continuously develop other rewards programs that have
added-value aside and not just rewarding them in monetary forms.
Employees’ Point of View – What They Really Want
From and Look for in Leaders
According to Gallup’s State of the American Workplace Report, 70% of
the employed sector makes up the group known as the “disengaged
employees.” These workers are known for their negative behaviors that
not only affect the quality of work they produce, but also that of their
co-workers. Their actions, aside from poor performance, also lead to
an increase in the frequency of accidents. They are the employees that
have the highest absenteeism rate and have the highest likelihood of
leaving the organization.
7Leaders and Corporate Culture – The Impact They Have on Employee Retention and Development

10. Add to this the uncertainty in the employed sector which is driving the
need for exceptional leadership. Employees nowadays are demanding
more from their leaders, a direct result of the recession that exploded
back in the year 2008. With so many leaders during that time having
failed their people, workers, particularly the best talents, have begun to
be wary and cautious of the people above them.
This then brings us to what employees really want from and look for
in the people that are supposed to lead them. There is a multitude of
qualities and characteristics that talents believe should be possessed
by their leaders, things that have the power to increase employee
engagement. Corporate leaders should know that 29% of fully engaged
workers, as reported by Gallup, can complete tasks in much less time
than those who are disengaged or are not fully engaged.
1. Accountability
Employees are expecting their higher ups to display accountability
not just for themselves, but for the people that they are leading. Some
leaders have failed to do their responsibilities because they assign too
much to their employees that there’s nothing left for them to do. Many
of them demand their employees to fix problems that they are supposed
to do on their own.
Leaders who possess this critical quality are those that have the
loyalty, admiration, and respect of the individuals who work under and
with them.
2. Empowerment and Respect
Employees value empowerment from their leaders. They want their
leaders to respect their individual strengths, which is why they want
to be allowed to make decisions on their own without having to run
everything by their supervisors or managers first. They want their leaders
to encourage them to utilize their own set of knowledge, skills, and
abilities to complete tasks. In the event that a problem arises, employees
expect their leaders to give them the help they need so that they can
find a way to resolve these issues.
3. Honesty and Authenticity
One of the most common mistakes that many leaders today do is
telling their employees half-truths. Yes, some leaders do this in order to
prevent bigger problems, but this does not hold true for every leader.
Employees expect their leaders to be just as truthful, trustworthy, and
authentic as they are.
8 Leaders and Corporate Culture – The Impact They Have on Employee Retention and Development
3 Areas of Focus for Keeping and Developing Talents:
Executive
Coaching
Leadership
Development
Talent
Management
Programs

11. It is a sad but unfortunate truth that there are only a few honest and
authentic leaders out there. However, corporate higher ups should
understand that developing and exhibiting these qualities will ultimately
result in a better workplace environment, which will then lead to greater
and more impressive employee productivity.
4. Specificity
Employees are looking for specificity in their leaders. They don’t want
to deal with individuals who tend to always give them generalized tasks.
They dislike it when their leaders beat around the bush. What they really
look for in a leader is someone who tells them specific directions, guides
them with insightful yet clear advice, and gets straight to point.
5. Vulnerability
Leaders are supposed to be more experienced, skilled, and
knowledgeable than the people they lead – this is why they are leaders.
However, this does not mean that they know everything. If they don’t,
they should not act as if they do. Employees actually admire leaders
who are transparent when it comes to their own vulnerability. Leaders
who tell their employees that they know they have of their areas for
improvement are treated with admiration and respect.
One of the main reasons as to why vulnerability is a key component that
employees look for in their leaders is because this quality is associated
with compassion, empathy, and understanding. Employees who are led
by individuals who are honest about their vulnerabilities know that they
are with someone who will understand them, be compassionate, and
know the value of empathy.
In a nutshell, leaders are those who have a complete understanding of
their accountability, just as how they hold their employees accountable
for the tasks they are assigned with. They value the opinion and insight of
their employees, just as how they want their coaching and lessons valued
by the people who are working for and with them. The most effective
leaders are those who can easily empathize with their employees. These
people hold honesty, authenticity, and respect in high regard, which
is why they show these qualities to their employees who are deserving
of them.
9Leaders and Corporate Culture – The Impact They Have on Employee Retention and Development

12. Conclusion
Determining the reasons why employees are leaving their jobs is a
necessary step that organizations should take if they want to become an
industry leader. Corporate leaders have to constantly find ways to ensure
high employee retention, with employee engagement being one of its
top priorities Organizations should develop a winning corporate culture
that is designed for all generations, rather it be for the Traditionals,
the Boomers, the Generation X, or the Millennials. Companies should
implement the right recognition, appreciation, and reward programs
if they want to lower their employee turnover rates. Investing in your
employees, especially in terms of having them undergo leadership
development training, executive coaching programs, or any other form
of talent management strategy, will ultimately result in you attracting,
developing and keeping the top talent in your industry. By investing in
the growth of your employees, you in fact fortify your company against
the risk of losing your great people to your competition or even worst
having your great people become your competition.
Sources:
1. http://www.forbes.com/sites/alanhall/2013/03/11/im-outta-here-why-2-million-
americans-quit-every-month-and-5-steps-to-turn-the-epidemic-around/
2. http://www.harrisinteractive.com/
3. http://www.accenture.com/us-en/client-successes/Pages/case-studies.aspx
4. http://www2.deloitte.com/global/en/pages/about-deloitte/articles/millennialsurvey.
html
Further Reading:
The Corporate Exodus: How America Top Companies Build a Winning Culture (to
Attract, Keep and Develop Their Emerging Leaders)
10 Leaders and Corporate Culture – The Impact They Have on Employee Retention and Development

14. Created by
Corporate Culture Academy
Corporate Culture Academy,
powered by
Rae Majors-Wildman International,
a U.S. private company.
Corporate Culture Academy
provides results-focused leadership
development, executive coaching
and professional training to public
and private clients spanning multiple
industries. With a commitment to
helping organization attract, develop
and keep their top talent, we provide
a G.P.S. approach to developing
the next generation of leaders and
providing insights to help companies
navigate the rapid changing and
complex business challenges.
This publication contains general
information only, and none of
Corporate Culture Academy,
its members firms or their
related entities (collectively
Rae Majors-Wildman International)
is by means of this publication,
rendering professional advice or
services. Before making any decision
or taking any action that may affect
your finances or your business, you
should consult a qualified
professional advisor. No entity of
Rae Majors-Wildman International
shall be responsible for any loss
whatsoever sustained by any person
who relies
on this publication.
To learn more about
Corporate Culture Academy
powered by
Rae Majors-Wildman International
visit
www.RaeMajorsWildman.com