Organisations have spent years refining employee engagement strategies, introducing wellness initiatives, recognition platforms, learning opportunities and culture-building programmes designed to improve retention. Yet despite these investments, one theme continues to emerge in exit interviews across industries: employees often leave managers, not organisations.
This has prompted a broader question for business leaders. If managers shape an employee’s day-to-day experience more than any policy or programme, has managerial capability become the biggest determinant of retention? Or is it simply one part of a much larger equation?
Three HR leaders share their perspectives.
Rishi Mohan, Chief Human Resources Officer, Iscon Balaji Foods
Yes. Employees experience culture through their managers, not through policies.
Employees experience organisational culture through their managers. Much of what they hear about an organisation before joining is ultimately tested through their day-to-day interactions with their immediate supervisor.
An organisation may describe itself as people-centric, inclusive or growth-oriented, but employees validate those promises through their manager’s behaviour. Managers become the face of the organisation, shaping perceptions of fairness, support, recognition and career growth.
This is why organisations need to invest in developing people-management capability rather than relying predominantly on engagement programmes. Such initiatives certainly have value, but they cannot compensate for poor managerial practices.
Managers influence motivation, performance and emotional connection to the workplace. They determine whether employees feel heard, whether feedback helps them grow and whether challenges are addressed constructively. A strong manager can build loyalty even during difficult periods, while an ineffective one can undermine the best-intentioned organisational efforts.
Technical expertise may help individuals become managers. Empathy, communication, coaching and trust-building are what make them effective leaders.
Takeaway: Culture is lived through managers, not communicated through policies; developing strong people leaders is essential if organisations want employees to experience what they promise.
Atul Mathur, EVP-HR, Aditya Birla Capital
Yes, but managers and engagement programmes must work together.
Managerial capability has a direct impact on employee behaviour. It influences business outcomes, helps reduce attrition and plays a significant role in keeping teams motivated and productive. Employees look to managers for direction, support, recognition and development, making managerial effectiveness a critical factor in retention.
However, this should not be viewed as a choice between leadership development and engagement initiatives. Both serve different yet complementary purposes.
Engagement programmes influence employee sentiment and strengthen the emotional connection people feel with the organisation. But their effectiveness often depends on how managers reinforce and bring those initiatives to life within their teams.
Managerial capability is the engine, while engagement programmes act as amplifiers. The engine drives the employee experience through daily leadership behaviours. The amplifiers enhance that experience by creating moments of connection, recognition and belonging.
Organisations that invest only in engagement activities without strengthening managerial capability may struggle to create lasting impact. Sustainable retention requires investment in both.
Takeaway: Managers drive the employee experience, while engagement programmes strengthen it. Long-term retention depends on investing in both.
Sujiv Nair, Global Chief People Officer, MSN Laboratories
Yes, strongly. But retention is bigger than any one manager.
Managerial capability has emerged as one of the strongest determinants of employee retention. Employees increasingly expect managers to do more than allocate work or review performance. They look to them for guidance, support, development opportunities and clarity during periods of uncertainty.
That said, organisations cannot rely solely on managers to retain talent. Retention requires a broader and more deliberate approach that addresses multiple dimensions of the employee experience.
In my view, organisations should think of retention through a balanced lens: roughly 30 per cent leadership development, 40 per cent employee engagement and 30 per cent communication and reinforcement of organisational priorities.
Leadership development remains critical because managers shape employees’ everyday experiences. Engagement initiatives help strengthen connection and commitment. Equally important is communication, ensuring employees understand organisational priorities and see consistency between what is said and what is practised.
Reinforcement is often overlooked. Organisations launch initiatives with enthusiasm but do not always sustain the focus required to make them stick. Consistent communication and reinforcement help embed behaviours, build trust and keep employees aligned with the organisation’s direction.
Managers matter immensely, but retention is ultimately influenced by the combined effect of leadership, engagement and communication.
Takeaway: Strong managers are vital, but retention is most effective when leadership development, engagement and communication work together.