Three Bold and Revolutionary Methods to Preserve High-Achieving Team Members
Leadership turnover has become a significant challenge for organizations across the nation in recent times, with far-reaching consequences. The 2025 Global Leadership Forecast by DDI highlights an alarming trend: leaders are quitting at an unprecedented rate with 40% contemplating resignation due to burnout. This mass exodus of top talent leaves organizations vulnerable to performance decline and talent gaps.
The stakes are high. Losing seasoned leaders isn't just about filling vacancies; it disrupts strategic planning and makes it difficult to attract high-caliber talent. The financial toll is substantial - the cost of leadership turnover, considering recruitment, onboarding, and lost productivity, can reach a staggering six to nine times a leader's salary.
Cerys Goodall, COO of Vetster, points out a few reasons behind this trend. "Many organizations, especially tech and startup ones, evaluate leaders based on volume rather than impact," she comments. "This leads to unsustainable workloads and a vain glorification of overextension instead of effectiveness." Moreover, the rollback of DEI programs has left some leaders, particularly those invested in equality and inclusion, feeling isolated and unsupported.
With leaders resigning at an alarming rate, it has become crucial for companies to proactively address these challenges instead of simply reacting to them. Organizations that address leadership problems head-on maintain a competitive edge in an increasingly intricate business landscape.
Why are Leaders Quitting? The Top Three Reasons
The Erosion of Trust in Leadership
The report reveals that only 29% of employees trust their immediate managers - a significant decline. Trust is the bedrock of strong leadership, and its absence stifles engagement and performance. When employees question leaders' credibility, a toxic cycle sets in: leaders struggle to gain influence, teams lose motivation, and organizational morale plummets.
Intense Workloads and Burnout
Leaders' roles are more demanding than ever before, with 71% reporting increased stress. The responsibilities placed on leaders are immense – they are expected to drive growth, manage teams, embrace new technologies, and ensure a strong workplace culture. Without proper support, leaders consistently feel exhausted, leading to disengagement and, eventually, turnover.
Uncertainty About AI's Impact
The rise of artificial intelligence is causing unease, especially among frontline managers. They fear AI will replace their jobs and drastically alter their responsibilities, leading them to feel anxious and resistant to technological change.
Understanding these reasons behind leaders' resignations is just the beginning. Companies need to devise innovative strategies to retain their top leaders, and here are three groundbreaking ideas:
Implement a Founder's Mentality Program
This initiative encourages senior leaders to operate like business owners or company founders, giving them autonomy over strategic initiatives and incentivizing them with equity, profit-sharing, or high-stakes career growth opportunities.
Offer Unlimited Growth Sabbaticals
High-performing leaders are granted fully paid leave for personal and professional growth every five to seven years. This structured sabbatical allows leaders to recharge and return with fresh insights, driving business success.
Establish Reverse Hierarchy Leadership Rotations
Executives and managers spend a set period in entry-level or customer-facing roles to gain firsthand experience of daily operations, improving their empathy and understanding of frontline realities.
"Organizations must redefine and reward success," Goodall advises. "Instead of focusing on volume or visibility, it's about impact. To do this, we need to embed sponsorship into leadership expectations, link pay incentives to real impact, and create leadership succession plans that don't rely on burnout as a prerequisite for advancement."
Retaining top leaders is no longer optional; it's a business necessity. Organizations that adopt bold, unconventional strategies foster a culture where leadership thrives.
Enrichment Data:
To combat leader burnout and resignation, companies can consider the following strategies:
- Prioritize Flexibility and Work-Life Balance: Encourage leaders to set clear boundaries, provide flexible work policies, and invest in comprehensive wellness programs.
- Enhance Mental Health Support: Implement comprehensive mental health resources and promote a culture that values employee well-being.
- Foster a Culture of Well-being: Encourage self-care, build a supportive network, and promote a positive work environment.
- Promote Recognition and Appreciation: Implement personalized recognition platforms and reward leaders for their hard work.
- Invest in Career Development: Offer tailored training programs, upskilling opportunities, and internal mobility pathways.
- Encourage Open Communication: Create team environments for safe dialogue, conduct regular check-ins, and foster a culture that values honesty and trust.
- Strengthen Company Culture: Clearly define mission and values, integrate them into the onboarding process, and promote a positive work environment.
- Make Data-Driven Decisions: Leverage data to track engagement, satisfaction, and turnover risks, informing strategic decisions.
Implementing these strategies helps create a supportive environment for leaders, reducing the likelihood of burnout and resignations.
- Cerys Goodall, in her role as COO of ForbesWomen's affiliated startup Vetster, emphasizes the importance of evaluating leaders based on impact rather than volume to prevent overextension and burnout.
- To combat the high rate of leadership resignations, ForbesWomen suggests implementing a Founder's Mentality Program, offering unlimited growth sabbaticals, and establishing reverse hierarchy leadership rotations, all aimed at fostering a culture of impact and retaining top talent.
- Recognizing the critical role mentorship plays in leadership development, ForbesWomen advocates for linking pay incentives to real impact and embedding sponsorship into leadership expectations to create successful and sustainable leadership practices.
