The True Cost of High-Performing Talent: Why Money Alone Won’t Keep Them

In today’s competitive business environment, many leaders focus heavily on the financial side of talent acquisition, offering competitive salaries, benefits, and bonuses to attract top performers. But is that enough to keep them long-term? While compensation is essential, it is far from the only factor determining whether top talent stays or goes. The true cost of high-performing talent extends beyond financial investments. It requires an ongoing commitment to proximity, meaningful relationships, and support that stretches beyond a purely transactional mindset.

Beyond Salary: What High Performers Really Want

High-performing leaders don’t just want to be compensated well; they want to feel connected, valued, and supported within an organization. When top talent is treated solely as a financial investment, it often leads to disengagement, frustration, and turnover. Research shows that a lack of engagement and connection is one of the leading causes of high-performer attrition.

A 2018 Gallup report found that 51% of employees would leave their current jobs for a company that allowed for more meaningful personal development and stronger relationships, even if pay remained the same. This highlights that leadership is not just about paychecks but also about creating an environment where top talent can grow relationally and professionally.

The Cost of Proximity

One often-overlooked component of talent retention is proximity. Top-performing leaders need access to their bosses and peers to feel invested in an organization. Without proximity, even the most talented individuals can feel isolated and disconnected from the broader mission of the company. Regular interaction with leadership is crucial, as it reinforces alignment, trust, and mutual respect. These relationships allow for more personalized feedback and development, showing high performers that their growth is a priority.

When leaders neglect to invest in proximity and relationships, they send a message that high performers are valued only for their output, not for their input, ideas, or potential. This transactional approach can be damaging, as top talent often expects more than just financial rewards. They expect access and engagement.

So, what can leaders do to ensure their top talent feels valued relationally, not just financially?

Three Practices Relational Leaders Use to Retain High-Performing Talent

1. Create Consistent, Meaningful Touchpoints Relational leaders understand that keeping a pulse on their top talent requires more than just annual reviews. Regular check-ins, whether formal or informal, help create a sense of belonging and trust. These touchpoints allow leaders to offer feedback, provide coaching, and listen to concerns or ideas in real time. According to a Harvard Business Review article, frequent touchpoints are critical in helping employees feel supported and aligned with leadership, which ultimately boosts retention. High performers, in particular, thrive on regular interactions where they can receive feedback and contribute strategically to the company’s success.
2. Facilitate Peer-Level Connections High performers benefit from strong peer relationships just as much as they do from solid relationships with leadership. Top talent often seeks opportunities to collaborate with others at their level, sharing knowledge, discussing strategies, and solving high-level challenges together. Creating avenues for high performers to engage with their peers through cross-functional projects, leadership forums, or team retreats fosters collaboration and strengthens the organizational fabric. According to McKinsey research, peer-to-peer learning and collaboration are key drivers of job satisfaction, especially for high-performing individuals.
3. Invest in Personal and Professional Growth The best relational leaders invest in both the personal and professional development of their top talent. They recognize that high performers are often driven by purpose and want to see how their work contributes to a larger mission. This goes beyond skill-building. It involves fostering growth in a way that aligns with personal goals. Offering executive coaching, mentorship opportunities, or leadership development programs tailored to individual strengths helps leaders build deeper relationships with their top talent. This investment signals that leadership sees them as more than just cogs in a machine. They are future leaders of the organization.

Building Strong Relationships as the Key to Retention

The cost of high-performing talent is not just about competitive salaries and benefits. It is about creating an environment that fosters connection, growth, and trust. Transactional approaches to leadership, where employees are valued primarily for their output, will ultimately lead to disengagement and turnover. The best leaders invest in proximity, create meaningful relationships, and offer high performers a seat at the relational table. By doing so, they ensure that their top talent not only thrives but stays for the long haul.

As Patrick Lencioni, author of The Five Dysfunctions of a Team, once said, “Not finance. Not strategy. Not technology. It is teamwork that remains the ultimate competitive advantage, both because it is so powerful and so rare.” If leaders are to attract and retain the best talent, they must build relationships that foster genuine connection and commitment, not just compensation.

Unlock the Secret to Retaining Top Talent: Book a Discovery Call Today and Transform Your Leadership

If you're a leader looking to attract and retain top talent while fostering a culture of growth and connection, now is the time to take action.

Book a discovery call with me, Michael King, to explore how my proven coaching frameworks, including the TEAMS Methodology, can help you develop stronger relationships with your high performers and create an environment where they thrive.

By working with me, you’ll gain the tools and strategies to lead with clarity, simplicity, and purpose, ensuring that your top talent stays engaged, aligned with your vision, and ready to drive long-term results for your organization. Let’s craft a leadership approach that not only attracts the best but keeps them committed to your success.

https://calendly.com/teamscoach/30min

Sources:

• Gallup (2018). State of the American Workplace.
• Harvard Business Review. What Great Managers Do to Engage Employees.
• McKinsey & Company. The Importance of Peer Collaboration in High-Performing Teams.