CoEffex Research | The Effect of Connection

How Strong Relationships Improve Engagement, Performance, and Retention

Team members in today’s workplace increasingly value collaboration, support, and rapport with their manager and fellow team members. Yet many managers remain overwhelmingly focused on tasks, metrics, and day-to-day execution. As a result, they often underinvest in the coaching behaviors that build trust, interpersonal connection, and long-term effectiveness.

Building relationships that engage trust and interpersonal relationships is not just a byproduct of good coaching. Instead, it is a behavior that drives measurable business outcomes and driver of performance. Our Coaching Effect Survey (CES) data aligns with decades of leadership research showing that engagement, performance, and retention are all directly impacted by the coaching behaviors of leaders. These findings consistently underscore how building Connection with team members is a high-impact behavior with quantifiable business outcomes.

 

HOW MANAGERS ARE PERFORMING TODAY

CES data shows that 61% of team members report their manager is strong in the Coaching Effect theme of Connection. Another 19% say their manager is adequate, while 20% rate their manager poor in this area. In other words:

• 3 in 5 team members currently experience the benefits of a manager who excels at building interpersonal connection. They benefit from the trust, growth, and support that comes from a manager who puts intention behind this coaching skill.
• Another 1 in 5 experience only moderate connection coaching from their manager. These managers are good enough to maintain basic management connection but fall short of the deeper behaviors that promote greater outcomes.
• The last 20% of teams report to a manager who struggles to create meaningful connection. This gap can actively undermine team member engagement, performance, and retention. They miss critical opportunities to build discretionary effort and understand individual strengths and performance.

 

THE MEASURABLE IMPACT OF CONNECTION

When leaders are strong in the Connection theme, their team members are:

• 3.6x more likely to see themselves working at their organization for at least a year. This reduces turnover-related costs in recruitment, onboarding, and training. Avoiding turnover also preserves institutional knowledge, stabilizes team dynamics, and maintains and strengthens client and partner relationships.
• 15x more likely to feel they have grown in their job abilities because of their leader. Skill growth increases productivity, enhances the quality of work, and builds an internal talent pipeline for teams. Team members who are encouraged to develop new skills are more engaged and motivated to contribute to organizational goals.
• 25x more likely to indicate their manager excels at leveraging their best skills & abilities. Team members supported in using their strengths produce higher-quality work, infuse innovation in their roles, and experience greater role satisfaction. Aligning strengths with responsibilities also improves team cohesion and reduces burnout.

 

WHY CONNECTION MATTERS

Connection reflects the depth and quality of respect, engagement, and rapport a manager builds with each team member. Strong relationships create the trust necessary for leaders to understand individual needs, remove barriers, and support their people in ways that directly impact outcomes.

Teams led by managers who are strong in Connection:

• Create a more engaging and enjoyable team environment
• Operate more productively and effectively
• Produce results with fewer friction points

 

Building stronger connections is not just a kind gesture or bonus leadership trait. Instead, it is a highly effective management skill that directly drives results. CES data shows that teams with strong Connection scores are more than 2x as likely to achieve or exceed all their measurable performance goals. This is a clear indication that Connection is not just a pleasantry but a strategic organizational strategy. When managers understand their people on an individual level, they can coach better, align strengths to roles, and create the conditions that drive high performance.