Retaining Talent vs. Retaining People

One of the toughest challenges in any organization, particularly in our industry, is understanding the difference between retaining talent and retaining people. At first glance, they may seem synonymous, but there’s a critical distinction between the two. Retaining talent means fostering growth in those who will help drive your firm forward while retaining people can sometimes mean holding on to individuals who might not contribute to the firm’s long-term success.

Retaining Talent: The Key to Growth

Retaining talent is all about identifying and nurturing those individuals who have the potential to become future leaders. These are the people who, with the right development and coaching, will not only excel in their current roles but will also help elevate the firm in ways we haven’t even considered yet. They have the capability to take on more responsibility, develop new client relationships, and mentor others.

This is not just about spotting talent—it’s about giving talented people opportunities to grow. Too often, partners and senior leaders hoard responsibilities because we’re afraid of what might happen if we let go. And I’ll admit it—I’m a control freak. But what I’ve learned over the years is that when you hoard all the responsibilities, you stunt the growth of your team. You miss out on developing those rising stars who could eventually help take some of that weight off your shoulders.

When we shift our thinking, we start delegating more to our senior managers and directors. Giving our people room to fail and coaching them through is how my firm turned our top performers into real leaders. Those individuals need to feel ownership over their work, and we, as senior leaders, need to be okay with them occasionally missing the mark. It’s how they’ll learn, and it’s how they’ll grow.

Retaining People: The Cost of Holding On

On the flip side, retaining people simply for the sake of it can be far more destructive than we often realize. I’ve seen it happen: holding onto someone because you’re afraid that being down a body will drag down the entire team. Let me tell you: the cost of keeping someone who isn’t right for a role is often much higher than just being one person short, it becomes uninspiring to the whole team.

We had a situation where a strong performer continually threatened to quit every time things didn’t go their way. It became such a disruption to the team that I accepted the threat to quit and let them go. While it created a few short-term hiccups, it ultimately squashed the silo that had been building, and the team became far more cohesive and effective.

It’s important to ask yourself: is this person worth the effort? Are we pouring too much energy into getting the work done at the cost of morale, culture, and the productivity of the rest of the team? Sometimes, letting go of a toxic or underperforming individual can improve the entire firm’s morale.

Building a Culture Around Retaining Talent

Building a culture that focuses on retaining talent rather than just retaining people requires the aforementioned shift in mindset. It means putting the right people in the room and giving them a seat at the table, even if they’re not yet titled leaders. 

In my firm, we started bringing senior managers into leadership meetings, which created a lot of dialogue. Not only did it let our future leaders know who they were, but it also gave others feedback on where they needed to improve.

At the same time, it’s crucial to recognize that not all partners are equipped with the tools and strategy to lead. Sometimes, a partner may excel in their technical role but lack the vision or business acumen needed for leadership. It’s about finding the right person for the right job—and that’s a key part of talent retention.

The Five-Minute Feedback Method

One of the most effective tools we implemented to retain and grow talent was something we called “Five-Minute Fridays.” Every Friday, seniors or managers spent just five minutes giving feedback to their team members—five things they did well that week, and five things they could improve on. It was quick, efficient, and incredibly impactful. It provided regular coaching, which helped accelerate development. It also created a culture where feedback was normalized, and there were no surprises come review time.

The Key to Long-Term Success

The key to long-term success lies in retaining talent, not just people. It’s about being strategic in who you invest in and knowing when it’s time to let someone go for the sake of the broader team. By focusing on developing your true future leaders and giving them the space to grow, you’ll create a more effective and forward-thinking firm.