To build a healthy organization with a high retention rate, leaders need to focus on cultivating strong relationships with their employees based on four LMX elements: increased communication, access, performance feedback, and influence over the agenda.
The leader-member exchange (LMX) theory is based on the relationship between leaders and their followers. This relationship’s stability is crucial for organizations to work effectively and retain employees. Leaders who want to scale their organizations and maintain a healthy retention rate need to understand that they have a relationship with each of their employees. To build healthy relationships, leaders should focus on four LMX elements: increased communication, access, performance feedback, and influence over the agenda. By focusing on these elements, leaders can build healthy and productive relationships with their employees built on trust. These are coachable issues that can be diagnosed and addressed to improve leader-follower relationships and reduce turnover.
Source: https://www.inc.com/jim-schleckser/the-real-reason-you-have-a-turnover-problem.html
