I’ve been speaking with many of my colleagues, leaders in the learning and development space, and HR professionals, and one conversation keeps coming up: 

How do we keep our top talent engaged and developing in a way that drives business growth while also navigating today’s challenges?

Right now, many organizations are in a state of paralysis. There’s uncertainty about how to move forward, particularly in light of recent executive orders impacting diversity, equity, and inclusion efforts. 

Every business wants to stay compliant while also ensuring they continue to develop their leaders. Because at the end of the day, success comes down to people. 

Your team is the backbone of your organization’s success, and it’s our responsibility as leaders to prepare them with the skills, capabilities, and mindset needed to execute on strategic initiatives. 

If we neglect leadership development, we risk disengagement, turnover, and stalled business growth.

As we explore what truly drives retention and turnover, the insights have been eye-opening. I want to share them with you today in a safe space so you can assess how your organization supports your people and what adjustments might be necessary to build a culture of growth and retention.

For the individuals who want development, notice all the benefits you’ll gain when you proactively seek out skill and mindset growth.

The Nine Key Factors That Drive Retention—and How Leadership Development Impacts Them

We invest significant time, energy, and finances in recruiting and training the right talent. After months of onboarding, these employees are finally at full productivity. But what happens when they feel not supported, challenged, or valued? They leave–along with all your investments!

The research shows 11 key factors influencing employee retention and turnover. Nine of them are directly impacted by leadership development and talent development. If you’re looking to retain top performers and drive engagement, these are the factors to focus on:

#1 Career Growth and Development Opportunities 

Employees need to see a future for themselves within your company. A lack of advancement and skill-building opportunities significantly increases turnover risk. Leadership development programs provide that growth path, equipping your leaders with the tools to advance and contribute at a higher level.

#2 Leadership and Manager Effectiveness 

You’ve probably heard this: people don’t leave companies, they leave bad leaders. 

If we don’t develop our managers into strong, empathetic, and effective leaders, we’re failing them and their teams. Leadership development ensures that managers have the skills to lead, engage, and influence their teams in a way that drives results.

#3 Employee Engagement and Job Satisfaction 

A Gallup Workplace Study, 2023 shows that highly engaged employees are 87% less likely to leave their companies. Investing in leadership development fosters engagement and helps your managers retool and gain the skills to inspire and motivate their teams, creating a work environment that people want to be part of. 

#4 Workplace Culture and Psychological Safety

Unlike the desired results, a toxic work environment pushes top talent out. Effective leaders create a psychologically safe culture where employees feel valued, heard, and safe to share their ideas and concerns without fear of retaliation. Leadership development training instills these crucial skills in your managers and leaders.

#5 Workload, Job Stress, and Burnout

According to Deloitte’s Workplace Burnout Report, 2023, overloaded employees can’t perform at their best, and burnout leads to costly turnover. At ExecutiveBound, our leadership programs focus on helping leaders with strategies to manage stress and high workloads, set boundaries, and foster a culture that prioritizes well-being without sacrificing results.

#6 Recognition and Appreciation

This may seem too obvious, but it’s worth highlighting. Deloitte’s Global Human Capital Trends Report, 2023, reveals that employees who feel recognized and valued are likelier to stay. Engaging your talent in development is a form of appreciation, and it helps leaders build the habit of providing meaningful recognition, ensuring employees feel seen and appreciated for their contributions. 

#7 Alignment with Company Purpose and Values

Employees want to feel connected to a bigger mission. Leadership development helps align individual goals with organizational objectives, reinforcing purpose and commitment to the company’s vision. In our ExecutiveBound ElevateHer leadership training lasting six months, we purposely support leaders to align their values with their organization and function and to recognize where gaps exist to address them proactively.

#8 Team Dynamics and Social Connections

Have you heard people thrive when they have “friends at work?” A strong team culture is essential for retention. It worked for me. I spent over 16 years in my last corporate role before starting ExecutiveBound. I felt connected to my colleagues and still consider many of them friends. Leadership programs, such as the ones we offer our partners, foster relationships, collaboration, effective communication, and trust among team members, strengthening workplace relationships.

#9 Performance Ratings and Promotions

High-performing employees need to see a clear path to career advancement. When I had 1:1 meetings with my managers, we openly discussed where I was performing well and where I needed to improve. These discussions often led to me working on my skills to grow. They also led me to engage in leadership development training, which led to me taking on greater responsibilities and promotions. Talent development positions your high-potential talent to continue growing within your organization. 

What You Can’t Control—And What You Can

The remaining two factors out of the 11 that influence retention and engagement which leadership development doesn’t directly impact are Compensation and Benefits and Remote/hybrid work flexibility. These last two factors are important considerations that your senior team should also evaluate and lean into. 

The nine factors above illuminate how you can make the most significant difference by prioritizing talent and leadership development–despite external factors. As long as your compensation is competitive with market standards and somehow flexibility in work schedules plays a role, even if your competitors offer slightly higher compensation, with career growth, leadership support, and a strong workplace culture, employees will opt to stay with you.

What’s Next for You or Your Organization? 

As a senior leader, let’s reflect: How well is your organization addressing these key factors? 

On a scale of 1 to 10, how would you rate your performance in each area? 

How are your leaders skilled to inspire and retain top talent?

How supported do employees feel in their career growth?

How psychologically safe and engaging is your workplace culture?

How are you actively addressing burnout and promoting well-being?

Once you’ve evaluated, if you’re not where you want to be, let’s talk. ExecutiveBound empowers leaders and organizations in financial services and STEM to develop critical leadership skills that drive business growth and high-performing teams without burnout through our tailored solutions and the C.A.R.E.S. Leadership Success System.

📌 Schedule a complimentary discovery session here, or email us at info@executivebound.com. We would love to hear from you and support your leadership development efforts.

Engaging and training high-performing, high-potential talent and leaders is key to business success. When you invest in their growth, you invest in the future of your company.

Let’s partner to unlock the full potential of your leaders and teams.

Lead with purpose, lead with joy!

Coach Ginny