As workplaces become more complex, companies have tried to improve employee retention through higher salaries, better benefits, and flexible work arrangements. But despite these efforts, turnover remains a significant challenge.

A 2024 Gallup report found that only 23% of employees worldwide feel engaged at work, with U.S. businesses losing an estimated $1 trillion annually due to voluntary turnover. Meanwhile, workplace stress has reached record highs—41% of employees say they feel a lot of stress at work, with poor management cited as a key driver.

Employee retention is no longer just about job satisfaction—it's about whether employees feel connected to their workplace and, more importantly, to their direct supervisors. Research increasingly suggests that the employee-manager relationship is one of the strongest predictors of engagement, retention, and profitability.

So what can companies do to address this?

A landmark workplace study conducted in 2024 examined how employee-supervisor relationships influence engagement, retention, and profitability. The study, commissioned by Quantum Connections and conducted by Sentient Decision Science, surveyed over 12,000 employees across 49 industries.

The Research Behind Workplace Connection

The research proves a fundamentally new approach to measuring workplace effectiveness by focusing on the critical human need for connection—as measured by feeling "seen and heard" by one's direct supervisor. This simple yet powerful metric captures the essence of workplace connection while providing actionable insights for leadership development and organizational improvement.

And the research findings were striking. Work environments where employees feel connected foster a workforce that actively contributes to company success. When employees' feelings of being seen and heard increase, businesses see the following impacts:

• Increased Engagement: Employees are at least 55% more likely to contribute ideas, 44% more likely to admit mistakes without fear, and 39% more likely to take calculated risks—all behaviors that drive innovation and team cohesion.
• Increased Retention: Employees are at least 31% less likely to think about leaving their employer once a week and are likely to stay with the employer an additional 9.5 months, at a minimum—reducing the need for costly rehiring and retraining.
• Increased Profitability: Fully connected workforces experience 38.7% greater profitability than fully disconnected workforces–fueling sustained business growth and stability.

These results reinforce what many business leaders already suspect: Compensation and benefits alone won't fix retention issues. Employees need to feel seen and heard in order to stay with the company and contribute to the overall success of the organization.

How Companies Can Strengthen Workplace Connection

Building a connected workplace doesn't require sweeping structural changes—it starts with improving communication, trust, and leadership at the managerial level. Companies that invest in workplace connection often focus on three key areas:

1. Coaching Managers to Be Better Listeners

The biggest influence on an employee's experience isn't the CEO or HR—it's their direct supervisor. Yet, many managers lack training in truly effective communication and feedback.

Providing leadership coaching focused on attentive listening to ensure understanding and accuracy helps employees feel more visible, safe, and connected. Additionally, providing feedback as a dialogue—talking with an employee rather than only talking to-–allows for more intentional two-way interaction that ultimately leads to greater collaboration. Studies show that employees who receive regular, meaningful feedback from their managers are much more likely to stay engaged and committed to their work.

2. Creating Psychological Safety at Work

Psychological safety—the ability to speak up without fear of embarrassment or retaliation—is a key driver of innovation and retention. Employees who feel comfortable expressing concerns or admitting mistakes are more engaged and productive.

Leaders can foster psychological safety by:

• Encouraging open dialogue and valuing all contributions.
• Modeling vulnerability—admitting when they don't have all the answers.
• Creating a culture where mistakes are learning opportunities, not punishable offenses.

3. Strengthening Employee Recognition and Appreciation

Feeling appreciated is one of the most powerful drivers of employee connection. Yet, a 2023 workplace study found that only 1 in 3 employees strongly agree that they receive adequate recognition for their work.

Recognition doesn't have to be expensive. Making sure that you are affirming the person for who they are and not just what they can do for you creates connection even with those of differing views and opinions. Simple strategies like shout-outs in meetings, personalized thank-you messages, and performance-based rewards can go a long way in reinforcing connection and engagement.

When employees feel their voices are heard in these interactions, they are far more likely to stay engaged and committed to their roles.

A New Way to Measure Workplace Connection

Despite the clear impact of workplace connection, many organizations struggle to measure it effectively. Traditional engagement surveys often assess overall job satisfaction but don't pinpoint whether employees feel genuinely connected to their supervisors.

To address this gap, the Net Connected Score (NCS) was developed as part of the workplace study commissioned by Quantum Connections.

NCS measures the level to which employees feel seen and heard by their direct supervisor, using one simple question that points us to the most important drivers of employee connectedness:

• Appreciation – Do employees feel that their individual value and contributions are acknowledged and appreciated?
• Empowerment – Do they have authority to make their own decisions and support for taking initiative?
• Psychological Safety – Do they feel comfortable voicing opinions, raising concerns and admitting mistakes?

Importantly, the study showed that when employees feel seen and heard, they stay longer, perform better and contribute more to their organization's success—all hallmarks of a healthy business.

The Future of Workplace Engagement

As companies continue to refine their approach to employee engagement, measuring and improving workplace connection will be a key differentiator.

Organizations that invest in stronger manager-employee relationships and improved workplace culture are more likely to retain top talent and drive long-term business success.

Companies that focus on fostering connection will see gains in engagement, retention, and overall profitability, helping them stay competitive in today's rapidly evolving workplace. And Quantum Connections' research findings suggest that understanding and addressing workplace connection isn't just an HR initiative—it's a business imperative.