GE and Microsoft’s strategy of proactively terminating the bottom 10 percent of employees helps high performers surround themselves with committed employees.  Collectively, highly committed employees encourage others to stay at a company. Additionally, Deloitte (2004) found that workplace relationships have a large impact on employee performance.

Leaders have significant power in building a climate of retention that influences employees to stay. Employees will seek leaders with whom they can build relationships, who will provide open and honest information, who will treat them fairly with respect and dignity, who will coach and mentor them, and who will inspire and motivate them. Leaders will be selected based on retention leadership skills and executives will be held accountable for the retention of employees. They also speculate that the significance of retention will be more prominent in company annual reports as retention rates assume an important position in the reports.

Despite the significant role and impact that supervisors have on retaining top talent and supporting the growth agenda, most of them do not deliver positive results on this front. It is up to HR to support managers in prioritizing time in their day to develop relationships with their employees and keep them accountable by rewarding managers for retaining or engaging talent. Without positive or negative incentives, supervisors lack the motivation to produce results. Lastly, HR must