It certainly seems like a simple enough equation; hire and/or develop the best talent to produce the best business results. In theory and in practice, that is generally true, at least for the short-term; the challenge is, often-times the hidden risk involved is your company’s role as the developing ground from which OTHER companies harvest.
But, if A-lister’s are what you want, you need to be prepared to handle their ambition and talent accordingly. Whether it’s home-grown talent or external hires, there are specific areas of focus that can help you retain your key employees.
1. Move the bar often ~ People are able to move “up” the promotional chain quickly in part because they are exceedingly adept at mastering the tasks in their current role. When promotional opportunities are scarce, your key employees need to be engaged outside of the normal job requirements. Shadow assignments and project work are two effective methods of keeping a key employee engaged.
2. Engaged management ~ When you have a high performing employee, your natural inclination is to focus on other employees. DON’T. Some studies show retention rates increase by as much as 91% when a manager effectively coaches, mentors, challenges, and develops his/her employees. Don’t micro-manage, add value to your time spent.
3. Compensation ~ If ever there were a need for “SPOT” awards, special incentive funds, or performance bonuses (even for those not bonus-eligible), this is it. Discretionary income is not only a huge incentive, it is easily linked to recognition AND retention. Make performance-based income a part of your management philosophy.
4. Development Planning ~ Meaningful opportunities for self-improvement and collaborative planning for short & long-term advancement. This is important for all your employees, but for fast-risers it’s especially critical to have a plan. Make it a shared effort, give them partial ownership, and then be consistent when re-visiting the plan on a periodic basis.
There’s another less tactical method of retaining employees – fairness. Nothing is more frustrating to a hi-performer than a “peanut-butter” approach to management, compensation, merit ratings, and expectations. Make meaningful differentiation in raises, in ratings, and in recognition. Deliver reviews in person, avoid a cut & paste exercise when providing feedback, and build a persona based on “honest” assessor. You may not control the corporate purse-strings, but you can certainly be fair and direct with your employees. You will be amazed at the positive reaction you receive, even from those receiving the tough love.
A common theme is easily visible – the manager bears a great deal of the responsibility for retaining key employees. It’s imperative that you get out of the weeds and actively engage these employees; believe me, that’s not an Exit Interview you want to host. The positive flip-side of this equation is the obvious influence you can have as the manager of top talent, no matter the level.
There’s no fool-proof way to retain talent, and you may be facing an uphill battle if there are cultural or organizational factors outside of your scope of influence. Don’t focus on what you can’t change, but don’t let that distract you from doing what you do best – keep the “keepers!”
John Whitaker is a partner at PeopleResults. Follow him on Twitter @JWPeopleResults.









