Losing Top Talent: 3 Steps to Increase HiPo Retention

Losing Top Talent Can Derail Your Strategy
Research on organizational alignment shows that talent accounts for 29% of the difference between high- and low-performing companies. Retaining top performers is critical to executing a strategy at peak performance. One of the most effective ways to protect your organization’s future is to intentionally build your leadership succession pipeline with high-potential individuals who align with your culture and strategic needs. Developing these leaders is not just a talent initiative — it is a core growth strategy that ensures your organization remains resilient, competitive, and ready for the challenges ahead.

Yet few companies retain and promote top talent well.

• Korn Ferry research found that only 1-in-3 companies surveyed reported they are satisfied with the outcomes of their current succession program.
• McKinsey research found that between 27 and 46 percent of executive transitions are viewed as failures or disappointments after two years.
• According to Gartner, the pace of employee turnover is forecast to be 50–75% higher than companies have experienced previously.

Select the Right High Potentials
Some companies may do a good job identifying high potential employees and even have a HiPo program to groom them, but their selection criteria are often flawed and generic leadership development programs typically miss the mark. If you have chosen a few star employees to invest in, make sure you have reviewed the following tips on how to do it right.

1. Choose High Performers Carefully
   When identifying high performers for development or special opportunities, it’s critical to apply consistent, objective criteria. Accurately assessing both current performance and leadership potential is essential — success in a current role does not automatically translate to success in broader, more complex positions.

   High-potential leaders must demonstrate not only technical expertise but also the emotional intelligence and strategic thinking required to excel at higher levels. Equally important is gauging their engagement with your organization. Don’t assume their commitment matches yours; meaningful engagement requires understanding their motivations and taking deliberate actions to align their goals with the company’s.

   Our organizational culture assessment data shows that up to 25% of high potentials anticipate seeking new opportunities within the year. Additionally, clients report that as many as 20% of high potentials feel their personal goals are misaligned with the company’s development plans. These numbers reveal a significant disconnect — but also a powerful opportunity to strengthen retention and cultivate leaders who are truly invested in your organization’s future.

2. Treat High Potentials Well
   High potentials deliver outsized value, and your rewards and recognition practices should reflect that. Even in challenging times, top talent must be consistently acknowledged — whether through formal rewards, meaningful feedback, or visible appreciation. They expect to be noticed and valued for their contributions, and allocating a fair share of recognition to these individuals reinforces their engagement and commitment.

   At the same time, “special treatment” does not mean shielding them from challenges. High potentials should be given stretch assignments that push their boundaries, test their adaptability, and develop resilience. These opportunities allow them to learn from risk, handle failure constructively, and grow under pressure — essential experiences for future leaders who will shape your organization’s success.

3. Share Information and Involve High Potentials in Corporate Strategy
   Keeping high potentials engaged requires more than recognition — it demands involvement in shaping the company’s future. Top performers need to trust senior leadership and have confidence in the organization’s strategic direction.

   When high potentials gain access to key information and actively participate in planning, their commitment and loyalty increase significantly. To mitigate the risk of losing your top talent, provide opportunities for them to sit in the executive suite, observe decision-making at the highest level, and learn firsthand what it takes to succeed in more senior roles. This exposure not only develops their capabilities but also strengthens their alignment with the company’s long-term goals.

The Bottom Line
Engaging and retaining top talent is critical to sustaining organizational performance. Minimize the risk of losing your rising stars by selecting them carefully, rewarding them meaningfully, and providing stretch opportunities that develop their skills while deepening their commitment. When high potentials are recognized, challenged, and involved in shaping the company’s future, they become a driving force for growth and long-term success.

To learn more about not losing top talent, download How CHRO’s Retain Top Performers