Why Do Companies Lose Good People? 5 Early Warning Signs Managers Ignore

“The water that pulls back” before a tsunami

Tilly Smith was only 10 years old. And she saved over 100 lives in Thailand, in 2004, when, following an earthquake in the Indian Ocean, a tsunami formed.
How did she do it?
She recognized the signs of a tsunami because she had learned about them a few weeks earlier, at school: that the sea suddenly pulls back, without any apparent reason.
Tilly managed to convince those around her to evacuate the beach. Over 100 people were saved. Unfortunately, another 225,000 lost their lives in that tragedy.
What does this have to do with leadership?

In reality, the waves are not the first sign of a tsunami, the water pulling back is.

It’s the same in an organization: people don’t suddenly “explode” into burnout or resignation.
They first withdraw. In silence. Into their shell.
They stop getting involved. Stop bringing ideas. Stop believing.

And that’s when the loss begins, even if it’s not visible in the numbers (or many ignore it and don’t believe their company’s results are directly influenced by employee engagement).

An educated and attentive leader can recognize these “pulling waters”: the drop in enthusiasm, minimal involvement in projects, lack of collaboration.

And if they choose to notice and act, they can prevent a true organizational tsunami.

I’ve often had conversations with managers who said:

“I just don’t understand what happened. They were a good person, high-performing, engaged… and suddenly they resigned.”

But the truth is that the departure of a valuable employee never happens suddenly. It’s the result of a series of small signals ignored for too long.

In a labor market where competition for talent is fierce, companies that know how to identify these signals in time can prevent costly losses. Not just of people, but of culture, reputation, and trust.

A Gallup (2025) study shows that 52% of employees leave because of their direct managers, not the company. At the same time, McKinsey confirms that organizations that prioritize culture, recognition, and development have 30% higher retention rates.

So, what are the early warning signs many leaders ignore?

1. Enthusiasm decreases, but compliance increases

An employee who starts saying “yes” to everything, without bringing new ideas or feedback, hasn’t suddenly become more disciplined. Most of the time, they’ve emotionally disconnected.

A lack of challenges, micro-management, or a rigid culture can turn engaged people into silent executors.

Harvard Business Review calls this phenomenon “quiet quitting before leaving,” a clear sign that intrinsic motivation has faded.

2. They no longer ask for feedback, nor do they offer it

When good people feel heard, they contribute with ideas. When they feel their voice doesn’t matter, they choose silence.
And in high-performing teams, silence is the most dangerous noise.

A Deloitte Human Capital Trends (2024) report shows that employees who feel their opinions matter are 4.6 times more likely to stay in the company.

Effective managers cultivate two-way conversations, not just status monologues. Unfortunately, I’ve seen many times in organizations that “yes” was the most used word (even though behind closed doors, those same people had a completely different opinion).

3. They avoid team initiatives

A subtle but clear sign: the professional who used to be present at every workshop, brainstorming, team building, or cross-departmental initiative starts declining invitations.
Not because they have less time, but because they no longer feel part of the tribe. And their time becomes increasingly precious.

SHRM (Society for Human Resource Management) research shows that the sense of belonging is one of the main predictors of retention, even more important than salary in some organizational cultures.

4. Performance remains constant, but joy disappears

They may still deliver the same results, but it’s clear they do it mechanically. There’s no longer curiosity, energy, or joy in what they do.

Here is another common mistake: managers confuse performance with genuine motivation.
Just because an employee delivers consistently doesn’t mean they’re emotionally engaged or still believe in the company or project.

Good people continue to deliver because they’re professionals. Simple as that.

McKinsey (2024) notes that 41% of high-performing employees who left their companies in the past two years did so at the height of their professional success.

5. They no longer talk about the future

One of the clearest signs: when good people stop asking, “What’s next for me?”, “What else can I learn?”, “Where can I contribute more?”
When the perspective disappears, the decision has already been made. Only the timing hasn’t been announced yet, or when it is, the news surprises everyone.

LinkedIn Workplace Learning Report (2025) shows that 94% of employees would stay longer in a company that invests in their professional development.

Conclusion

Good people don’t leave suddenly.
They leave when they feel they’re no longer growing, no longer heard, or when their work no longer has meaning.

And the responsibility lies equally with shareholders and every manager who leads people.

Authentic leadership means attention, listening, and timely recognition.

Those who offer these have the chance not only to keep good people but to see them become exceptional.

If you want to learn more about how to build a culture of retention and healthy leadership, I invite you to discover how we support companies in recruitment and leadership development here:  https://www.antal.com/recruitment/romania-bucharest-sb