How to Retain Top Talent by Investing in Your Leaders

What happens when your people stop feeling connected — not just to their work but to their future at your company? 

That’s the growing concern facing organizations today. Employee engagement is slipping. Burnout is rising. And many professionals — especially from younger generations — are quietly contemplating their next move. 

Here, we’re seeing a confidence gap — a growing erosion of energy, trust and commitment. If left unaddressed, it could lead to diminished performance and productivity and, ultimately, increased turnover among your top talent. 

But there’s good news for organizations wondering how to retain top talent in the face of declining engagement. One of the most effective strategies is leadership coaching — a powerful lever that reduces burnout, strengthens company culture and reenergizes both leaders and their teams. 

The Employee Engagement Crisis: A Warning Sign, Not a Conclusion 

Today’s workforce isn’t walking out the door en masse — but many are looking at it.  

According to Gallup, just 31% of U.S. employees are engaged — the lowest level in over a decade — costing companies billions in lost productivity. Right Management’s The State of Careers reports echo this concern, warning that North America is approaching a full-scale engagement crisis. 

Employee engagement is falling most rapidly among Gen Z and workers under the age of 35. This group isn’t simply searching for employment. They’re seeking strong organizational fit, supportive leadership, a positive workplace culture, transparent growth opportunities and visible support of their well-being.  

When those elements are absent, they begin to look elsewhere. In fact, according to ManpowerGroup’s Accelerating Adaptability report, nearly half — 47% — of Gen Z workers say they’re likely to leave their current roles within the next six months. 

Meanwhile, middle managers are feeling the squeeze. They’re navigating shifting priorities, increased responsibilities and growing pressure to achieve both high performance and team well-being. Burnout is increasing among this group, with only 27% of managers worldwide reporting being engaged at work.  

These aren’t just individual experiences. They’re early indicators of a workplace culture under strain. When managers struggle, employees feel it. When younger talent feels adrift, they disconnect. 

Leadership coaching directly addresses these challenges by equipping leaders with the tools, self-awareness and resilience they need to reengage themselves and reignite the teams they lead. As a testament to its impact, organizations with a culture of coaching realize an average ROI of seven times the initial investment.  

Leadership Coaching Builds the Skills that Shape Culture and Drive Engagement 

Coaching used to be reserved for the C-suite. Today, it’s a strategic asset across all levels of leadership — especially in the middle, where culture is created day to day. 

Managers shape the employee experience more than any other role. When they’re burned out, emotionally drained or unclear, their ability to lead with intention suffers. Coaching helps reverse that by developing the skills today’s workplace demands. Through quality human-centered coaching, managers learn to: 

• Stay grounded and regulate stress in high-pressure situations 
• Communicate with clarity, empathy and consistency 
• Understand and respond to team needs before issues escalate 
• Navigate ambiguity and lead through change with confidence 
• Coach others — supporting growth without micromanaging 

These aren’t soft skills — they’re survival skills. When leaders are coached, they show up with intention. They don’t just manage work — they create conditions where teams can thrive. And that has a powerful ripple effect on engagement, culture and retention. 

From Employee Burnout to Balance: Coaching Builds Leadership Capacity 

Burnout doesn’t happen in a vacuum. When leaders are overextended, it cascades across teams, eroding morale, psychological safety and trust. 

Leadership coaching doesn’t eliminate pressure, but it strengthens a leader’s capacity to handle it. Through structured reflection and feedback, coaching helps managers: 

• Pinpoint energy drains and develop strategies to manage them 
• Shift from reactive to proactive thinking 
• Prioritize what matters most for themselves and their teams 
• Stay emotionally steady, even when stakes are high 

These mindset shifts make a real, visible difference — not just for leaders but for everyone they influence. Teams feel more supported. Energy rebounds. Collaboration improves. And in organizations where coaching is present, burnout becomes less contagious and engagement becomes more sustainable. 

Coaching Helps Leaders Build Cultures People Want to Be Part Of 

Culture isn’t something you define in a strategy document. It’s something people feel in their daily work. It shows up in team meetings, casual conversations, performance check-ins and how leaders respond to change. 

When managers are under-resourced or overwhelmed, culture can become inconsistent, even contradictory. But when they’re supported through coaching, they’re more equipped to: 

• Model company values and expectations 
• Foster trust, inclusion and belonging 
• Recognize and develop talent on their teams 
• Create space for collaboration and innovation 

Coaching helps leaders lead with clarity — not just urgency. It gives them the mindset and skill set to create a workplace that people feel proud to be part of — regardless of their role or career stage. 

Coaching Is a Signal of Organizational Commitment 

Employees — especially early-career professionals — aren’t just asking what their job is. They’re asking: “Does this organization care about my growth? Do my leaders know how to help me succeed?” 

Leadership coaching sends a clear and powerful message: “We’re invested in your development — and in developing the people who lead you.” That kind of signal builds loyalty. It shows that development is a real priority, not just a talking point. And it reinforces the belief that this is a place where people can do meaningful work and build lasting careers. 

Make Coaching a Central Part of Your Retention and Engagement Strategies  

If your organization is serious about boosting engagement and reducing burnout, coaching must be a core part of your talent strategy. 

Here’s how to start: 

1. Prioritize high-impact populations: Focus on middle managers and people leaders who influence large or at-risk teams. 
2. Tie coaching to business outcomes: Define what success looks like, whether it’s stronger engagement, better resilience or improved team performance. 
3. Choose the right partner: Work with a coaching provider that blends evidence-based practices, world-class coaches and a human-centered approach that reflects your values. 
4. Integrate coaching across talent programs: Embed it into manager development, succession planning and career pathing — not just as a standalone tool. 
5. Measure what matters: Track participant feedback, engagement score changes and leadership behavior shifts to evaluate effectiveness. 

The goal of your retention and engagement strategies aren’t just better leaders. They’re about fostering a better culture created and sustained by stronger, more present leadership. 

Concluding Thoughts: Coaching’s Ripple Effect  

The biggest risk organizations face today isn’t just low engagement. It’s the long-term impact of disconnection — from purpose and leadership to future growth. 

Leadership coaching helps reverse that trend. It reduces burnout, builds leadership capacity and creates the kind of environment where people choose to stay. Because when leaders are supported, they show up differently. And when they show up differently, everyone benefits — from Gen Z employees finding their footing to seasoned professionals re-engaging with purpose. 

Coaching at all levels isn’t a perk. It’s how you build the culture your people want to grow in — and lead within.