Last updated April 11, 2025

Teams with low manager effectiveness scores show 2x higher attrition rates

Why It Matters

Manager quality is the single largest driver of team retention and engagement. Teams with managers in the bottom quartile of effectiveness scores experience 2x the attrition rate and 23% lower engagement than teams with top-quartile managers. This pattern is costing the organization an estimated $2.4M annually in turnover costs and is creating a negative cycle where struggling teams lose their best people first.

How We Uncovered This

Data Sources

  • • HRIS Data - Team-Level Attrition Analysis (2024-2026)
  • • Lattice Performance Management - Manager Effectiveness Scores (2023-2026)
  • • Manager Training Completion Rates - LMS Data
  • • Exit Interview Data - Manager-Related Themes (Q1 2024 - Q1 2026)
  • • Employee Engagement Survey - Manager Relationship Items

Methodology

We correlated manager effectiveness scores from Lattice 360 reviews with team-level attrition data from the HRIS. We then analyzed manager training completion rates and exit interview themes to identify root causes. The analysis controlled for team size, function, and tenure distribution to isolate the manager effectiveness variable.

Key Findings

  • • Teams with bottom-quartile manager effectiveness scores have 2.1x higher attrition than top-quartile teams
  • • Manager training completion rate is only 34% - significantly below the 78% peer benchmark
  • • Managers who complete effectiveness training show 28% improvement in team retention within 12 months
  • • Exit interviews cite 'relationship with manager' as a factor in 64% of voluntary departures
  • • Only 41% of managers have regular 1:1s with direct reports, vs 82% at peer organizations
  • • Manager effectiveness is not currently included as a factor in manager performance reviews
Related Benchmarks

Manager Training Completion Rate

Develop

Manager training completion is less than half the peer benchmark

Your Score: 34%
Peer Average: 78%
Below Average

Manager Effectiveness Score (Avg)

Develop

Average manager effectiveness lags peers by 12 points

Your Score: 62%
Peer Average: 74%
Below Average

Regular 1:1 Frequency

Develop

Less than half of managers hold regular 1:1s with their teams

Your Score: 41%
Peer Average: 82%
Below Average

Manager Accountability in Performance Reviews

Develop

Manager effectiveness is rarely factored into manager performance evaluations

Your Score: 18%
Peer Average: 67%
Below Average