Retaining Top Talent - Insights from my LinkedIn poll.

Retaining top talent is a critical challenge . Last week I undertook a poll on LI that asked the question ‘What do you think is the most effective strategy for retaining top talent?’

and here are the results

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- Competitive salary and benefits – 27%

- Development and Career Growth – 7%

- Strong Organisational Culture and Values – 47%

- Flexible Working Arrangements – 20%

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Interestingly, the top choice reflects a strategic shift toward building a values-driven organisation, which aligns with wider research on employee preferences. Here is what I think these results mean for leadership teams.

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Strong Organisational Culture and Values (47%)

Nearly half of the respondents identified ‘strong organisational culture and values’ as the most critical factor in retaining talent. This is a telling result, indicating that leaders recognise the power of culture in an employee’s decision to stay or go. Boards are increasingly aware that fostering a purpose-driven environment, where employees feel connected to the company’s mission and values, is key to retention.

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Interestingly, this aligns with employee-focused research, such as a Glassdoor study in 2019 which found that 56% of workers rank culture as more important than compensation when it comes to job satisfaction. For Organisational leaders the challenge is ensuring that these values are not just words on a wall but are actively lived throughout the company. Building a strong culture requires consistent communication and behaviour from leadership, as well as a genuine commitment to these values from top to bottom.

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Competitive Salary and Benefits (27%)

Although ‘competitive salary and benefits’ came in second, the fact that it garnered 27% of the vote shows that leaders acknowledges the role financial incentives play in retaining talent. However, it’s clear from the lower ranking that executives are moving beyond purely financial strategies. They understand that while compensation is important, it’s no longer the only factor that drives employee loyalty.

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Supporting this view, a Gallup study in 2022 found that engaged employees require a 31% pay increase to consider taking a job with a different organisation. So while salary is a significant factor, other elements like workplace culture, career development, and flexibility often have a bigger impact on long-term retention. For senior executives, the key takeaway is that competitive pay must be combined with other meaningful employee experiences to be truly effective in reducing turnover.

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Flexible Working Arrangements (20%)

The rise of ‘flexible working arrangements’ receiving 20% of the vote reflects the recognition among c-suite leaders that today’s employees demand more control over how and where they work. This was, of course, accelerated by the COVID-19 pandemic, which forced companies to rethink traditional office models.

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A McKinsey report in 2022 found that 58% of the Americans who took part in their survey reported having the opportunity to work from home at least one day a week ?and in a 2024 update to that report - office attendance remains roughly 30 percent lower than it was before the pandemic. Employees want more flexibility in their working arrangements. Organisations understand that offering remote or hybrid working options is now not just a perk but a competitive advantage. However, the challenge for leaders is ensuring that flexibility doesn’t come at the cost of business performance. Balancing flexible working with team cohesion and productivity is an ongoing concern for many.

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Development and Career Growth (7%)

Interestingly, only 7% of respondents felt that ‘development and career growth’ was the most effective retention strategy. This could reflect an assumption among senior leaders that career growth opportunities are expected in any role, rather than being a stand-alone differentiator.

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However, it’s important to note that employee research tells a different story. The 2020 LinkedIn Workplace Learning Report found that 94% of employees would stay longer at a company if it invested in their development. For the organisations, this finding is a reminder to not underestimate the importance of clearly defined career paths and professional growth opportunities. While culture and compensation are important, ensuring ongoing learning and development is vital for keeping high performers engaged and motivated.

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Talent retention is no longer just about salaries and benefits. Organisations are increasingly recognising the importance of creating a values-driven culture that resonates with employees on a deeper level. This aligns with broader research showing that employees are more likely to stay with organisations where they feel a sense of belonging and alignment with company values.

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At the same time, leaders understand that other key factors such as flexibility, competitive pay, and career development cannot be ignored. Retaining top talent requires a comprehensive strategy that touches on all these elements, not just one. For boards and senior executives, the challenge is balancing these priorities in a way that supports long-term growth and stability for the organisation while also reducing turnover.

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The pain points for leadership are clear: misalignment between employee expectations and organisational offerings can lead to costly churn. To keep talent, leaders must focus not only on financial incentives but also on creating an environment where employees feel connected to the company’s mission and have the flexibility and opportunities they need to thrive. It’s a delicate balance, but one that organisations will master if they want to create a long-term, sustainable retention strategy that addresses both business needs and employee expectations.