According to a 2008 Deloitte Research study, “Research suggests that a company’s ‘stars’ are the first to be poached by competitors and are less likely to stay. Moreover, a study of investment banks found that when imported from elsewhere, stars rarely sustain their performance in the new organization.”
The last thing you want to see is your top people walk across the street to one of your competitors. Talent retention affects the bottom line not only by reducing costs, but also by building an effective workforce. Companies often invest hundreds of thousands of dollars in recruiting talent but then stop there and miss the opportunity to get the best return on their hiring investment.
Some organizations invest in a “buddy” system, which is a good investment, but it’s a short-term (2-3 months) solution and addresses only the issues of adjustment. Mentoring, however, is more strategic and aims to do the following:
• Demonstrate to new employees the company’s investment in their future with the organization
• Create a more effective contributor to the company’s overall goals
• Engender a sense of loyalty in employees
Think of it this way: loyalty breeds longevity. If you invest in nurturing your top talent early on, the less likely you’ll be dealing with the scenario of him or her walking across the street to another company.