Human-centric leadership: The key to employee retention and business success

Discover why 63% of professionals leave jobs due to poor leadership connections and how human-centric leadership can boost employee retention and business success.

Recent research reveals that 63% of professionals have left jobs primarily because they didn’t connect with their leadership team. This striking statistic underscores a critical challenge facing business owners today: employee retention depends increasingly on leadership style rather than just compensation or benefits.

A report from Robert Walters identifies ‘Human-centric Leadership’ as a fundamental requirement for business success in 2025 and beyond.

The research also found that 68% of employees left jobs due to ‘empty promises’ from management, indicating that trust is a cornerstone of effective workplace relationships.

Why human-centric leadership matters for your bottom line

“In today’s rapidly evolving workplace, leadership success will be easier to achieve when leaders put people first,” explains Gerrit Bouckaert, CEO of Robert Walters Recruitment. “More so now than ever as professionals fear the role of AI and whether it will be considered as a job replacement.”

Bouckaert emphasises that human capital remains essential: “We will always need people in the workplace. And much like you would invest in your technology with R&D and improvements, the same goes for your people.”

The business case for this leadership style is compelling: companies that prioritise people are 2.6 times more likely to meet business objectives and 1.5 times more likely to retain high-performing employees.

Warning signs: Transactional leadership damages engagement

The report identifies specific leadership behaviors that drive employees away:

  • 62% of employees feel disengaged when leaders only communicate when they need something
  • 71% can detect insincere optimism, describing it as ‘forced enthusiasm’

“Leaders who fail to engage personally with their teams not only risk losing loyalty, but also valuable insight on the company and ideas for improvement or future growth,” notes Bouckaert.

The 6 leadership traits driving employee turnover

When professionals were asked to identify traits of poor leadership, these six emerged as the most damaging:

  • Lack of Transparency (72%) – Employees lose faith in leaders who withhold information or fail to explain decisions
  • Inconsistency (66%) – Leaders who say one thing but do another struggle to earn long-term respect
  • -Avoiding Accountability (44%) – Failure to admit mistakes creates a culture of blame
  • Ignoring Employee Wellbeing (30%) – Prioritising profit over people creates a toxic environment
  • Micromanagement (28%) – Lack of trust stifles innovation and motivation
  • Playing favourites (22%) – Unequal treatment fosters resentment and disengagement

Implementing human-centric leadership in your business

For business owners looking to improve retention and performance, the report outlines four practical strategies:

  1. Invest in leadership development: Provide coaching on empathy, emotional intelligence, authenticity, active listening, and inclusivity. Consider external expertise if these skills aren’t available in-house.
  2. Establish transparent communication channels: Create environments where ideas flow freely and feedback is welcomed. Simple practices like regular Q&A sessions or an open-door policy (in-person or digital) make significant differences.
  3. Realign your company culture: Redefine values, performance metrics, and reward systems to reflect human-centric principles.
  4. Prioritise employee engagement: Understand employee needs and develop corresponding strategies – including collaboration opportunities, work-life balance initiatives, and meaningful recognition programs.

The future of leadership is human

As AI and technology continue transforming business operations, the distinctly human elements of leadership become more valuable.

For business owners focused on sustainable growth, investing in human-centric leadership isn’t just good practice—it’s becoming a competitive necessity.

By fostering psychological safety, flexibility, and continuous learning, leaders can build stronger, more engaged teams that drive business success in 2025 and beyond.

“Business leaders that foster psychological safety, flexibility, and continuous learning will build stronger, more engaged teams – and ultimately, a more successful business,” said Bouckaert.

Image at top: Photo by Andreea Avramescu on Unsplash

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