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The actual reasons why employees quit

Personal Finance

|

May 2026

The old adage that people leave managers, not companies, is true-but only up to a point

- By ASRIF YUSOFF and JAFNI BIN JOHARI JIKEN

The actual reasons why employees quit

IT HAS been said that “people leave managers, not companies”. It’s easy to believe that this is true, either from personal experience or observation. Many workers can easily point to a line manager who dismissed their concerns, or treated them unfairly.

However, is it really fair to suggest that managers alone are the dominant cause of staff turnover? Our recent study indicates that in most cases, it’s a combination of both leadership and the organisation. We reviewed 39 papers from the past ten years—and the findings suggest something more nuanced.

People might leave a job if what is demanded of them significantly exceeds the resources they’re given. Managers do matter here, because they can shape both sides of that equation—but leadership style alone can be overpowered when workload remains high, and resources are consistently below par. In these conditions, even good managers struggle to retain people.

Across the literature, leadership was shown to influence employee turnover in two ways.

First, leaders decide how much support they want to give employees for the tasks given to them.

Good relationships between managers and employees tend to clarify to workers what is expected from them, as well as a sense of autonomy and an ability to express oneself without fear (what we call psychological safety).

Within management theory, there are different types of positive leadership. These include ‘transformational’ (real impact is felt), ‘servant’ (leaders maximise team potential), and ‘ethical’ (grounded on strong principles). Studies consistently link these favourable approaches to staff being less inclined to leave, due to stronger levels of trust and engagement.

Second, leaders intensify demands.

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