Why Staff-Culture Leadership Means More Now

Retention has become a challenge due to COVID-19 restrictions, hybrid offices, and the supply chain crisis. The number of people quitting their jobs is still higher than before the pandemic and is impacting the service sector by slowing operations, reducing productivity and declining revenue. To reduce churn, companies are focusing on people-related stewardship, which encompasses compensation and professional development, as well as soft skills such as well-being, communication, confidence in leadership, and culture. The National Association of Corporate Directors’ 2023 Governance Outlook report highlights the importance of focusing on employee engagement beyond compensation to build a sense of motivation and belonging. Other factors that organizations are paying attention to include hiring effectiveness, succession planning, flexible work alignment, emotional health, diversity, equity, and inclusion, and trust in leadership. Effective communication from leaders who truly care about their employees can help address the churn problem and build positive organizational cultures.