Leadership quality and senior management character
Most companies blame "culture" for retention issues. The data suggests they should blame managers. In reports analyzed by AwardCo (referencing Gallup data), researchers found that managers account for at least 70% of the variance in employee engagement scores across business units. This single variable outweighs perks, pay, and corporate messaging combined. A bad manager is a localized recession; a good manager is a localized boom. This finding suggests that capital allocated to "Manager Upskilling" yields the highest return of any cultural intervention.
https://news.gallup.com/businessjournal/182792/managers-account-variance-employee-engagement.aspxWe do not view culture as a monolithic cloud; we view it as a collection of micro-climates created by individual managers. If a company has a "retention problem," they usually have a "manager problem." We look for organizations that treat management not as a promotion, but as a discipline. Companies that rigorously train their managers on the mechanics of human performance (recognition, clarity, feedback) generate superior consistency in their cash flows.
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