The Hard Truth About Retaining Your Top 1% — and How to Nail It
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If you've been in business long enough, you've likely encountered that exceptional individual—the one who doesn't just meet expectations but redefines them. They're the rainmakers, the innovators, the catalysts who elevate your entire organization. But retaining these top performers can be a real challenge. That said, to be a top-performing company, you must figure out how to keep people who could leave and start their own business or become a leader elsewhere.
Recognizing the True Top Talent
Top talent isn’t only about delivering results. Sure, they possess the skills and knowledge that set them apart, but they’re also coachable, highly motivated, and an absolute pleasure to work with. The very best don’t have a business downside. You know the person on your team who delivers results and knows more than anyone about their domain, but they’re just impossible to work with? Yeah, they’re not top talent. You know the one with the opposite problem, who is a gem to work with but can’t deliver the result? Also, not top talent.
Top talent sets the standard in every phase. They don’t just do their jobs; they transform them. They inspire teams, challenge the status quo, and drive innovation.
The Cost of Complacency
I've been on both sides of the table. As an employee, I was the definition of top talent and a flight risk! Hell, I left and started my own business after thirteen years as their top-performing employee. Something happened there, right? As a CEO, I've also been fortunate enough to grapple with the challenge of retaining top performers even in our brief history.
When I reflect on how I felt as an employee and try to act as a CEO, I feel the most important thing is to engage top talent in conversations about their future as early as you’re certain. The second most important thing is figuring out your model(s) for offering them a compelling future with your business and collaborating with them to become a part of it. Otherwise, they’ll think about it on their own and wonder if they’re valued. By the time they express concerns, they might already be exploring other opportunities.
This is a risk you can't afford.
Rethinking Compensation: Beyond the Paycheck
If you think you’ll have to pay top dollar to retain top talent, you’re right. That said, wise contractors provide competitive salaries for every position in the business, but they avoid overpaying in the salary category, even for top talent. Instead, they opt for performance-based compensation models
The Power of Proactive Engagement
Engaging top talent shouldn't be a reactive measure. It's about building relationships, understanding aspirations, and aligning them with organizational objectives.
Open Dialogue: Regular check-ins to discuss goals, challenges, and aspirations.
Clear Growth Paths: Outlining potential career trajectories within the organization.
Personalized Development Plans: Tailoring opportunities for learning and advancement.
By fostering an environment where top talent feels seen, heard, and valued, you not only retain them but also empower them to drive your organization forward.
Retaining your top 1% isn't about grand gestures or exorbitant paychecks. It's about recognition, alignment, and proactive engagement. By understanding their unique value, offering meaningful incentives, and fostering a culture of growth, you ensure that your top performers remain integral to your organization's success.
The Spark Notes:
Top talent doesn’t just deliver results—they elevate everyone around them, setting new standards through motivation, coachability, and consistent excellence.
Retaining top performers means creating a future they can see themselves in before they start imagining one somewhere else.
Competitive pay matters, but smart leaders prioritize performance-based incentives and meaningful career paths over inflated salaries.
Proactively engaging your best people through honest conversations, tailored growth plans, and real alignment is the only way to keep the 1% from walking.
