Throughout my 20 years in leadership and transformation roles, one thing has been clear to me: losing great people is never easy. But when it does happen, it’s usually not for lack of talent or potential. Instead, the reasons often come down to a fundamental issue: leadership and culture.

While it’s impossible to draw up a definitive scientific formula for employee retention, I’ve found that great leadership – the kind that challenges, nurtures, and supports employees – is the key to keeping talented individuals onboard. Let’s break it down.

1. Challenge and Growth: Keeping the Spark Alive

One of the most powerful ways to retain great employees is to keep them challenged. Talented people are hungry for growth, learning, and meaningful work. If their role becomes repetitive or stagnant, they’ll naturally start looking elsewhere. I’ve always made it a point to offer employees more responsibility over time, giving them increasingly complex tasks that allow them to grow and thrive.

It’s not just about giving someone a bigger title or a broader scope. It’s about continually stretching their capabilities and providing new challenges to solve. This aligns with the concept of intrinsic motivation – when people feel they are growing and progressing, they are more likely to stay engaged.

2. Recognition and Development: People Want to Be Valued

Recognition doesn’t just come in the form of monetary rewards – though that’s certainly a factor. People want to feel valued for their contributions. They want to know that their efforts are being noticed and appreciated. At the same time, they want opportunities to continue developing.

I always work closely with my team members to craft personalized development plans. These plans reflect the fact that no two people are the same. Whether someone is new to the field or a seasoned expert, I believe in tailoring development to fit individual needs, preferences, and career goals.

It’s about building a culture of continuous development and feedback loops, where both the leader and the employee are committed to mutual growth.

3. A Sense of Ownership: Empowering People to Make a Difference

A great way to retain people is by giving them ownership over their work. When employees feel that their contributions have a direct impact on the success of the company or the team, they are more likely to stay motivated. It’s not just about the work they’re doing – it’s about the difference they can make in the bigger picture.

Empowerment is a key concept here. People thrive when they feel trusted and when they have the autonomy to make decisions. They’ll be more invested in outcomes if they feel like they can influence them.

4. The Circle of Influence: Reducing Bureaucracy and Increasing Autonomy

A common frustration I’ve encountered – and one that leads to people leaving – is when the bureaucracy within an organization becomes stifling. Talented people want to make an impact, and when they’re bogged down by red tape, it can become incredibly frustrating.

One of the key elements of retaining top talent is ensuring that their circle of influence is large enough. People need the space and support to implement their ideas and make things happen. If their ability to act is constantly constrained by layers of decision-making, they will quickly become disillusioned.

5. When the Environment Stops Evolving

Reflecting on my own career, I’ve seen two common reasons for talented people leaving: stagnant environments and salary disparities. Sometimes, the environment around an employee is simply not mature enough, or it has reached a standstill. When people can no longer see opportunities for growth or improvement, they begin to lose motivation.

Another reason people leave is purely financial – and while it’s not always the main reason, it’s often a catalyst. When employees are offered a 25-30% increase in salary, many find it hard to say no. However, the key to retaining top talent is not just about compensation. It’s about creating a holistic environment that combines challenge, development, recognition, and empowerment.

6. Building a Healthy Culture: The Foundation of Retention

Organizational culture plays a pivotal role in employee retention. I’ve had the experience of stepping into dysfunctional teams, where poor leadership had cultivated an unhealthy culture. This can lead to an atmosphere where employees feel disengaged, even if they believe they are “high performers.” When teams become complacent or overly comfortable, it’s only a matter of time before top performers start seeking more stimulating opportunities elsewhere.

Creating a high-performance culture is about setting clear expectations, fostering accountability, and ensuring that everyone is working towards the same goal. It’s about creating an environment where people feel safe to make mistakes, learn from them, and ultimately grow. And when that happens, retention rates improve significantly.

7. Diversity: A Catalyst for Innovation

As an IT professional, I’ve worked in environments where diversity was minimal, and I’ve seen the negative impact it has on innovation. When teams lack diversity, they often end up reinforcing old patterns of thinking and decision-making. In tech, where things change rapidly, maintaining a narrow view can limit a team’s potential.

That’s why I believe in the importance of diversity in teams – not just in terms of gender, but also in terms of experience, education, and backgrounds. Bringing in people with different perspectives forces others to think differently, challenge assumptions, and adapt to change. It keeps the team on its toes and leads to greater creativity and problem-solving.

In my experience, the best teams are diverse in all aspects – young and old, male and female, seasoned experts and fresh talent. When diverse perspectives come together, innovation flourishes.

8. The Power of Trust and Accountability

Another critical element of retaining top talent is trust. I’ve always trusted my employees to make decisions, take risks, and learn from their mistakes. I believe that when you give people the freedom to take ownership, they will rise to the challenge. This kind of empowered autonomy fosters a deeper connection to their work and to the company.

When something goes wrong, I don’t look to assign blame. Instead, we have a conversation focused on what went wrong, how to fix it, and what can be learned from the experience. This approach builds psychological safety and ensures that people feel comfortable taking risks without fear of failure.

Conclusion: Good Leadership Retains Good People

At the end of the day, keeping great people is not about offering the highest salary or the most luxurious perks. It’s about good leadership – leadership that empowers, challenges, and supports. It’s about creating an environment where people feel valued, recognized, and most importantly, trusted to do great things. When you do that, the risk of losing great people diminishes.

Retention isn’t just about preventing turnover; it’s about creating an environment where people want to stay, grow, and contribute. And that is the mark of great leadership.