Economic uncertainty is everywhere. In recent weeks, I’ve heard the same concern echo across organizations: “The current climate is impacting performance.”
And the response? It usually follows a predictable playbook:
- Optimize non-labour costs, the first step in any well-managed organization.
- Operate leaner, downsizing SG&A functions, revisiting go-to-market models, rethinking spans and layers, use benchmarks etc..
- Call in consultants, hoping for that elusive “magic solution.”
These actions may ease short-term financial pressure, but they come with a price:
- Engagement drops.
- Retention of key talent becomes a headache.
- Rumours spread, trust erodes, and uncertainty deepens.
So, what’s the alternative?
Do we launch expensive retention programs? Train leaders on retention strategies? Increase rewards and recognition? Enhance the Employee Experience and EVP? Sure, these can help, but do they really work, or just make leaders feel better for “doing something”?
The truth is simpler and far less costly. It rests on two timeless principles:
- Employees leave managers, not companies.
- Employees value transparency.
The Social Dimension of Leadership: Back to Basics
This is where the real magic happens. Leadership isn’t just about strategy and execution, it’s about human connection. The “social dimension” means communicating authentically and empathetically with your team, from onboarding through every stage of their journey.
In times of crisis, this matters even more. Leaders must show up, be present, and increase communication honestly and transparently. History is full of examples of leaders who inspired engagement and loyalty simply by being visible and real.
At its core, this is about knowing your people, building emotional connections, and adapting your style while respecting boundaries. Yet, I’m often amazed by how many leaders have only transactional, task-oriented conversations with their teams. No active listening. No casual check-ins. No pause to ask, “How are you doing?”
The result? Poor engagement, weak retention and often poor execution. Misunderstood expectations, unchecked resources, and absent feedback lead to performance gaps that could have been avoided with better communication.
But What About Remote Work?
Some argue that remote work makes this harder. I disagree. I would say being a little provocative It’s an excuse. Channels for connection are everywhere such as video calls, chats, virtual coffee breaks. If strong routines are in place, opportunities for “social leadership” are abundant. Nobody stops a leader from starting a meeting with a genuine question before diving into the agenda. As long as feedback and human interaction are seen as a “waste of time,” engagement and retention will remain hot topics.
The Real Call to Action
The formula is simple: Act on the social dimension of leadership every day.
Care. Listen. Communicate. Be present.
Retention and engagement aren’t about expensive programs; they’re about human leadership !
