What are the primary drivers for retaining talent / losing talent?
A Strong Career Path Providing team members with a clear, actionable and attractive plan for personal, professional growth is the foundation for talent retention.
Without a strong career past, talent retention will be infinitely harder and always reactive. On the flip side, if a strong career path is provided, other factors (see below) become less decisive.
High Opportunity Costs In short, high opportunity costs make other options less attractive. Low opportunity costs, make ‘shopping around / looking for alternative offers’ a low risk/more compelling path. There are a few factors that influence these:
A Strong Upside Being vested in an outcome increases opportunity costs. Confidence that this outcome is actually going to occur, is positively correlated with opportunity costs. This means, that having faith/confidence in leadership, product, market dynamics and other factors all influences risking/falling (perceived) opportunity costs.
The Team / Culture Working with a team that one values, and appreciates has a positive effect on opportunity costs, given we all know this is not a given. Everyone dreads working w/ rude people. Building a team based on Ideal Team Player virtues, will be critical in retaining talent.
ExternalitiesThe health of the job market, economic growth/recession, related industry events (i.e. mass-lay offs in an industry) all influence perceived opportunity costs.
A Compelling Mission / Vision
Everyone has a desire to do ‘meaningful work’, to spend their time on things that matter (to them).
A compelling mission/vision is critical factor
i)in acquiring A-talent,ii)ensure A-talent can be retained beyond the typical 2-3 year mark at a company.A strong mission further buy a company or team additional time, if 1) and/or 2) are not where they should be.
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