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The DEI Dilemma: Experts Reveal Outcomes of Corporate Retreats

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The DEI Dilemma: Experts Reveal Outcomes of Corporate Retreats

What happens when a company’s commitment to Diversity, Equity, and Inclusion is put to the test? As some organizations begin to dial back their DEI programs, we are witnessing a real-time stress test of corporate values versus financial and political pressures. This moment of reckoning raises crucial questions about the future of workplace culture.

We asked a group of DEI experts, HR professionals, and business leaders to help navigate this uncertainty. They cautioned against the profound risks of losing momentum—eroded trust, stifled innovation, and a disengaged workforce. However, they also explored how this challenging period can serve as a catalyst for building more resilient, intentional, and impactful approaches to inclusion.

Discover their insights on the path forward, balancing pragmatic challenges with the non-negotiable need for progress.

Read on!

Dr. Qiana O’Leary
CEO & Founder, Minty Education Service

Dr. Qiana O’Leary

As CEO of Minty Educational Services and Instructional Assistant Professor at Texas A&M International University, my work sits at the intersection of culturally responsive leadership, educator wellness, and sustainable work culture.

My research is grounded in conversational leadership, an approach that centers intimacy, interactivity, inclusion, and intentionality as core elements of how leaders communicate and build trust.

Through this lens, inclusion is not an initiative.

It’s a way of being. A daily practice. It’s how we show up.

So when organizations scale back DEI efforts, they’re not just stepping away from a program. They’re signaling that equity is optional. And that message carries consequences: broken trust, lowered morale, and cultures that become performative rather than people-centered.

Conversational leadership offers a more sustainable path. One that isn’t reactive to political winds but rooted in the values that make organizations strong. Honest dialogue. Shared power. A commitment to belonging that doesn’t waiver.

This is the kind of leadership that holds. And this is the work we do at Minty.

Sara Thomas
Advisor, Mother Cover

Tabitha Ziegmann

When organizations choose to scale back DEI initiatives, they will likely face consequences that will impact them well beyond the surface metrics. When comprehensive support systems are dismantled, women and underrepresented employees bear the brunt of the impact.

Take structured parental leave policies as an example. When these programs are diminished, it’s women who are impacted the most as they typically shoulder the caregiving responsibilities. When this happens it leads to career interruptions that directly impact pay equity and create challenges that have long term effects, including: reduced participation in professional development, limited advancement opportunities, and widened wage gaps.

Similarly, cutting flexible work arrangements removes the very accommodations that help diverse talent balance personal responsibilities. McKinsey’s “Diversity Wins” report confirms the business case: companies in the top quartile for ethnic diversity are 36% more likely to outperform peers on profitability, while those leading in gender diversity see 25% better financial returns.

Forward-thinking organizations recognize the value in these benefits and do not view them as dispensable costs but as interconnected systems that create equitable workplaces where all employees can contribute their full potential while also managing their personal lives.

It’s in these environments where organizations and people come together driving innovation, retention, and sustainable growth.

Hayden Cohen
CEO, Hire With Near

Hayden Cohen

There are some short-term gains to be made here, but this is going to hurt businesses in the long term. 

Cutting DEI initiatives now may let companies eliminate some positions in HR and perhaps get on the good side of the current administration and their supporters, but it’s important to remember that the core of DEI is smart business. 

It’s about finding the best talent at the best price. 

Historically, women and minorities are underpaid and under-represented in leadership. 

I call that a market inefficiency to take advantage of.

Shannon Estreller
Director of People, EvolveMKD

Shannon Estreller

Scaling back DEI initiatives can have significant negative consequences for organizations, particularly in terms of engagement and retention. Employees who feel valued and included are more engaged and productive.

I think there’s a misconception about how DEI initiatives show up in the workplace.

At EvolveMKD, we understand that a workplace prioritizing Diversity, Equity, and Inclusion isn’t just checking a box—it’s creating a space where everyone can thrive. And our actions speak louder than words.

Our holistic approach to DEI is reflected in our benefits, employee wellness programs and philanthropy. For instance, our Annual Medical & Wellness reimbursement covers ad hoc childcare, birth & postpartum doula services, mental health therapy, physical therapy, and pet wellness.

Our Life Event Benefit supports family planning, reproductive health, and gender-affirming care, while our Paid Reproductive Loss Leave provides support during challenging times. We also celebrate and support DEI through cultural celebrations, community volunteer work, and targeted donations.

These initiatives are not standalone efforts but are woven into the fabric of our organization, ensuring that all employees and our local community feel valued and empowered. This commitment has led to a significant increase in our retention rate year over year.

Doug Crawford
Founder, Best Trade School.net

Doug Crawford

In the long term, scaling back DEI efforts could also limit the diversity of talent an organization attracts.

Today, candidates, especially those just entering the workforce, are looking for employers who are committed to inclusivity and equal opportunities. If a company pulls back on its DEI initiatives, it might struggle to compete for top talent, particularly from younger generations who value these principles.

Organizations might find that their efforts to cut costs or streamline initiatives may end up costing them in employee satisfaction and talent retention in the long run.

These programs aren’t just about ticking a box; they’re an important part of creating a positive and productive workplace.

Robert Grunnah
Owner, Austin House Buyer.

Robert Grunnah

In the real estate game, trust is currency—and trust is built when people feel seen, respected, and represented. That’s something DEI efforts help foster, whether you’re closing deals or running teams.

Cutting back on DEI might save money in the short term, but it could cost a lot more in the long run. When businesses quietly move away from being welcoming, they send the message that joining is up for grabs, whether they mean to or not. That lowers confidence, turns away the best people, and stops new ideas from coming up.

Different kinds of people on my team have seen deals that other teams missed because they saw them through a different set of eyes. I once worked with a bilingual agent who helped us reach a market group we hadn’t been able to reach before. Without her help, we would have missed out on six figures in sales.

That wasn’t just DEI on paper; that was the return on inclusion in the real world. Pulling back right now is not only dangerous but also not smart. Businesses don’t need tools that do things. They need strategies that are focused on people and change along with the areas they serve.

Harpreet Saini
CEO, We Buy Houses in Metro Detroit

Harpreet Saini

As the CEO of a real estate investment company with a diverse workforce, I’ve had the opportunity to see firsthand how DEI initiatives have evolved and draw conclusions from data regarding their impact on their business.

The pullback from DEI initiatives now is a concerning trend that overlooks considerable business value.

According to McKinsey’s 2023 diversity report, more-diverse firms capture 19% more revenue from innovation and 35% better financial performance. By backing away from structured DEI initiatives, organizations risk losing these competitive differentiators that bring bottom-line achievement.

Firms that are reducing DEI efforts most typically reference budget or political reasons. Still, our experience is that incorporating diversity values into core business processes rather than discrete projects costs less to implement and is more successful.

We’ve found that incorporating inclusive practices into existing business processes results in employees being retained for 27% longer and 31% higher customer satisfaction rates in ethnically diverse communities where cultural competence directly impacts transaction success.

The worst possible consequence is the talent flight when companies send signals of diminished commitment to inclusion. Our industry research indicates that companies publicly retreating from DEI initiatives see a 42% increase in resignation rates of high-performing underrepresented group employees in six months.

This talent loss has measurable recruitment costs of $45,000-$150,000 per role while decreasing organizational knowledge and capability.

Rather than binary “all-in or all-out” DEI approaches, more progressive organizations are embracing integration models in which inclusive practices are incorporated into mainline business operations rather than existing as freestanding programs.

This has allowed our organization to have different points of view that drive innovation without politicizing the problems that tend to ensnare freestanding DEI departments.

Jonathan Palley
CEO, QR Codes Unlimited

Jonathan Palley

I definitely think that DEI is a good idea, but there have been some really bad implementations of it.

I know that the backlash to DEI isn’t being driven so much by, say, a bad HR training as by deeper racial animus, but I think it’s important to acknowledge that, while DEI was a good idea, it wasn’t working for a lot of people.

I do hope that DEI survives and moves forward, but it needs to improve.

Edward Hones
Founder, Hones Law

Edward Hones

Short-Term Optics vs. Long-Term Risk: Scaling back DEI initiatives might feel like a safe move in the face of political or economic pressure, but from my perspective as an employment lawyer, it’s a legally and culturally shortsighted decision.

When companies pull back on DEI, they may reduce immediate public scrutiny, but they often increase their long-term exposure to discrimination claims, retention issues, and internal morale breakdowns.

I’ve seen firsthand how organizations that deprioritize inclusion begin to quietly lose top talent, especially from underrepresented groups.

The risk isn’t just about optics, it’s about losing the trust of your workforce.

DEI as a Legal and Strategic Imperative: I advise clients to see DEI not as a trend, but as part of their risk management and talent strategy. It’s about creating systems that help everyone thrive, which in turn reduces liability and drives innovation.

Organizations that proactively invest in equitable practices tend to experience fewer legal disputes because they’re addressing root causes before they escalate.

If leadership treats DEI like a PR campaign rather than a core value, it will always be the first thing cut, and that’s where real damage begins.

The companies that stay the course will be the ones best positioned for long-term success and legal resilience.

Emma Sinclair MBE
CEO, EnterpriseAlumni

Emma Sinclair

Companies scaling back DEI initiatives are going to have a major talent problem in the medium term.

These companies that don’t make an effort to include women, returnees, carers, minorities will find that they have less boomerang hires, referrals, evangelists and advocates.

Talent is the number one challenge and need for all businesses – so it’s a short-term own goal.

The HR Spotlight team thanks these industry leaders for offering their expertise and experience and sharing these insights.

Do you wish to contribute to the next HR Spotlight article? Or is there an insight or idea you’d like to share with readers across the globe?

Write to us at connect@HRSpotlight.com, and our team will help you share your insights.

Recent Posts

The DEI Fade: Leaders Share Impacts of Pulling Back

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The DEI Fade: Leaders Share Impacts of Pulling Back

As some organizations dial back their Diversity, Equity, and Inclusion (DEI) programs, the potential consequences for workplace dynamics, employee morale, and organizational success are coming into sharp focus.

Driven by financial pressures, shifting strategic priorities, or external influences, these reductions have ignited discussions about their broader implications.

We asked DEI experts, HR, and business leaders:

What are the possible outcomes of scaling back DEI initiatives?

Their responses highlight significant risks, including eroded trust, diminished innovation, talent attrition, and reputational challenges.

Yet, they also point to opportunities for organizations to reimagine DEI efforts with greater focus and sustainability.

In a world where authenticity and inclusivity are increasingly non-negotiable for employees and customers, these leaders underscore the importance of strategic, intentional approaches to preserve DEI progress.

Explore their expert insights below to uncover the risks, opportunities, and actionable strategies for navigating the complex terrain of DEI in today’s evolving workplaces.

Read on!

Ericka Prentice
Founder, mindfulnessmatters

Ericka Prentice

Let me begin by saying real change is never lasting if it’s based on the horror or sensation surrounding one event. The reasoning behind most of these initiatives was flawed at best and designed to alleviate white guilt.

Let’s be honest, backs were up against the wall after George Floyd because it was blatant and played in constant rotation. We’ve never had a problem with the killing of BIPOC people in this country. In fact, we’re a country that makes lynching postcards, burns a pregnant black woman, cuts her baby from her belly and stomps it to death. George Floyd was a routine lynching.

However, the world knew that Black America was not going to let this just go away and it was watching. The pressure was on and companies had to respond one way or the other.

DEI, the way most companies engaged with and implemented it felt performative at best. It did not and was not ever designed to address structural or systemic issues.

We have never been willing to have those conversations in America. We would rather maintain the comfort of particular groups than address the real needs of marginalized groups.

The companies that are stepping away were never committed to real change, only change that was going to keep them from losing money and their consumer base. They were never interested in doing the hard work or having the tough conversations or truly learning what it’s like to be a part of a marginalized group in this country or in their workplaces. They will say they were, but they lie, period.

This is why I do what I do. In my mind, teaching leaders how to incorporate mindfulness tools in their everyday lives is crucial.

When we teach leaders how to communicate mindfully, to understand aggressive language, how to listen and hold mindful meetings, we create leaders that are more inclusive, more compassionate and engage more meaningfully with their teams. In turn, their teams are more productive and experience genuine psychological safety.

We should’ve begun with mindfulness training prior to leaping into DEI initiatives. Mindfulness tools, and I’m talking beyond just breathwork and meditation, change lives, create better leaders and create better teams.

Dr. Laurie Cure
CEO, Innovative Connections

Dr. Laurie Cure

The current legal and regulatory landscape around DEI is certainly testing organizational agility and stamina. At the present time, I think companies are watching the legal volley around the issues and approaching it with caution, despite often believing and wanting to further the underlying intention of supporting greater representation, fairness and cultures of belonging.

In direct response to the question, organizations that have reduced their DEI initiatives have experienced pushback from consumers and employees alike. Sales, employee retention, reputation and supplier relationships have been negatively impacted by many of the companies that have aggressively moved away from DEI practices.

For organizations whose mission, vision and values are tightly aligned to inclusion, representation and fairness, DEI practices are more critical to them and their customer base. Eliminating or changing these practices has more significant implications.

DEI’s purpose is obviously threefold: ensure a workforce represented by individuals with various backgrounds, a focus on fairness with organizational practices, and creation of an environment where everyone feels respected, valued and empowered.

While underrepresented is often interpreted by race, it more often includes gender, individuals with disabilities, veterans and those who have served in our armed forces, as well as their spouses, LGBTQ, lower socioeconomic and/or educational backgrounds or certain age groups.

DEI is expansive and recognizes that human nature is flawed and biased and seeks to put structures in place that minimize those tendencies so everyone has a fair and equal opportunity. It is not designed to punish certain people who are more deserving or qualified than others, but rather, expand opportunities so everyone who is (or could be) qualified has an equal opportunity to be seen.

Tampering down on DEI practices risks stifling current and future talent and undermining a company’s own ability to compete and achieve higher levels of performance both individually and as organizations.

Ultimately, without focus and emphasis, we revert to old patterns of underrepresentation and we know that often leads to lower business performance. We also know from current research that most employees want diversity, equity and inclusion in their workplaces.

While there might be disagreement around specific practices, employees and leaders desire cultures that embrace diversity, fairness and belonging (call it what you will). Turnover, engagement, innovative thinking, and toxic workplace behavior, are all at risk with declining emphasis on these efforts.

I also think it is important that we continue to understand the difference between DEI and affirmative action. While there are some areas of overlap, most companies we work with (many who operate across the globe) are maintaining DEI efforts (although they might be calling them something different) and more closely examining affirmative action strategies, which often.

What is often more interesting to me is looking at those organizations that have elected not to move away from DEI practices.

They are staying within the law by eliminating quotas and race-based preferences, but they are maintaining (and growing) a commitment to language, DEI-specific programs, employee resource groups, inclusive hiring practices and benefits packages, and community engagement, which fosters diversity and inclusion.

Sahara Rose De Vore
Founder & CEO, The Travel Coach Network

Sahara Rose De Vore

Companies claim that company culture and wellbeing are part of their core values yet, scaling back on DEI programs speaks otherwise.

In order to promote a happier and healthier workplace, there needs to be diversity. To build compassion, empathy, acceptance, and understanding amongst coworkers, which in turn, boosts company culture, there needs to be diversity in cultures, abilities, genders, ages, etc.

This is because we are all different as human beings. Through interactions, conversations, and time spent with people who are different from yourself, your understanding and empathy for others builds.

Companies need good company culture to succeed. People need to feel understood, accepted, and trusted to perform well, to exercise their creative juices, and to be motivated.

Without a diverse workplace, employees will struggle to see new perspectives and lack care for team work, ultimately hurting the company itself.

Jamie Graceffa
HR Executive, Kind Cards

Jamie Graceffa

As DEI initiatives come under increasing scrutiny, HR professionals are being called to reimagine how we uphold psychological safety, build employee engagement, and nurture an inclusive culture—without compromising compliance or values. One powerful, unifying solution is kindness.

Kindness is not a soft skill—it’s a strategic one. It offers a human-centered bridge that helps preserve the essence of DEI, especially in climates where traditional approaches are being scaled back. Far from being politically charged, kindness strengthens trust, reduces conflict, and improves team dynamics. It reinforces inclusion and well-being while delivering measurable outcomes like stronger retention, improved performance, and a more meaningful employee experience.

Without DEI initiatives, the foundation of a healthy workplace culture begins to crack. Trust erodes, morale drops, and creativity is stifled. One-note thinking limits innovation, while unchecked bias opens the door to exclusion and toxicity. The consequences aren’t just cultural—they’re business-critical.

Intentional kindness in the workplace isn’t just a feel-good practice—it’s a catalyst for belonging, resilience, and long-term success.

Mark Sanchez
Founder, Tropic Residential

Mark Sanchez

We believe in fostering an inclusive environment where everyone feels welcome and represented—but we also believe the long-term success of any organization depends on a foundation of merit.

Scaling back DEI entirely risks alienating valuable voices, but overcorrecting can dilute the focus on performance and accountability.

The most sustainable approach is one that opens the door for everyone, then lets ability, work ethic, and results guide growth. Inclusion and merit don’t have to compete—they work best when they’re aligned.

Barbara Marzari
Communication & Engagement Strategy Director, Sociabble

Barbara Marzari

In the past few years, DEI programs have built more engaged, creative, and productive workplaces. So naturally, companies risk losing talent and weakening the morale and overall company performance if they pull back on DEI efforts.

From my experience helping entrepreneurs build their reputations, it is clear that inclusivity is a necessity today. If companies ignore DEI, they will surely see a decline in employee satisfaction, especially among underrepresented groups who feel that their voices are no longer being heard or valued. This could become costly both financially and in terms of brand equity.

Moreover, the young generation focuses on inclusivity and wishes their employer to do the same. So, scaling back DEI efforts could damage a company’s reputation in the eyes of potential hires as well. Once a company is seen as backward in DEI, it will struggle to attract top talent. This will become a bigger issue in creative industries where diversity brings innovation and performance.

DEI initiatives definitely demand effort and investment. However, such effort and investment are very small compared to the kind of reputation they build in the longer run. DEI builds a resilient and expanding company culture, and scaling it back would also pull back the progress companies have made.

So, how you decide to navigate through this as an organization is really going to matter.

Corina Tham
Finance & Sales Director, CheapForexVPS

Corina Tham

Reducing DEI efforts might influence the inclusiveness and equity within organizations. From my standpoint, particularly in fields like trading, varied viewpoints are essential for driving innovation and making sound decisions.

Pulling back on equity and inclusion could limit the diversity of ideas and hinder creativity in addressing challenges. Since trading relies heavily on examining different market trends and patterns, diverse teams are better positioned to tackle issues from various perspectives.

Businesses may also risk losing top talent who prioritize inclusive work cultures, which could impact overall outcomes. Furthermore, minimizing DEI initiatives might damage a company’s reputation, a key factor in client-focused industries like trading.

In my view, fostering diversity doesn’t just uplift individuals but also enhances the collective achievements of the team.

Ushmana Rai
Owner, TDEE Calculator

Ushmana Rai

Pulling back from DEI efforts may provide short-term relief or savings, but in the end, it is a retreat, not only in terms of culture but also competition.

Here’s how:

The Drain on Talent is Real: A large number of today’s workforce, especially the younger generations, look for an inclusive and equitable working environment. Any move that goes backward in DEI creates discontent among diverse talent and sends them out with the feeling that belongingness can be negotiated. This will gradually eat away at innovation and retention.

The Reputation is at Stake: Companies now that are letting DEI stand a step down may be branded as mostly performative. Today’s consumers and stakeholders are so values-led that silence and reversals do not go unnoticed.

Missed-Out Business Growth: A lot of studies have associated diverse teams with better decision-making and increased profits. It is not only a moral failure to scale back DEI but also a failed business strategy.

The Alternative? Refocus, Don’t Retreat: Instead of abandoning DEI, organizations should evolve it by integrating it into core strategies, leadership pipelines, and customer experience. That is the only way that true equity grows, quite, deep.

Karen Cosentino
Chief People Officer, Barge Design Solutions

Karen Cosentino

At Barge, our commitment to fostering an inclusive culture remains steadfast, independent of external policy changes.

We believe that diversity of thought, background, and experience drives innovation, strengthens our teams, and enhances the solutions we deliver. Rather than reacting to policy shifts, we remain focused on what has always been important to us—creating a workplace where all employees feel valued and empowered.

Candidates seek out companies that value inclusivity and professional growth. By focusing on the best talent for the role, we have seen steady increases in representation, particularly in areas where the AEC industry has historically had a higher percentage of men.

Employees are drawn to workplaces where they feel valued and have opportunities to connect. Our employee-led groups and professional development programs provide meaningful engagement beyond daily work, creating a stronger sense of community. We also believe that offering access to a variety of assignments generates an environment where innovation can prosper.

A culture of inclusion is built through daily actions, leadership commitment, and opportunities for connection. HR leadership serves as a resource to leadership and an advocate for employees, playing an important role in connecting all employees. Supporting the creation of employee-led groups or community-sponsored events builds connection and, subsequently, community.

Liam Perkins
Digital Marketing Manager, Privr

Liam Perkins

Scaling back DEI efforts isn’t just a step backward, it’s a full-blown trust fall with no one to catch marginalized employees. Let’s be real: DEI isn’t a “phase” you sunset after hitting a quota. When companies treat it like a trend, they signal that inclusion was performative, not foundational.

For brands like Privr, which exist to uplift LGBTQ+ communities, DEI isn’t optional, it’s the DNA. Gutting these initiatives risks alienating both talent and users who crave authenticity. Imagine a dating app that stops prioritizing queer safety features, trust evaporates overnight.

The anticipated outcome is a decline in creativity.

Homogeneous teams recycle ideas, while diverse teams spark innovation. Without intentional DEI, companies lose their edge in understanding nuanced markets, like Gen Z, who demand brands walk the inclusivity talk.

Plus, backsliding invites PR fires: employees and consumers will call out hypocrisy. Long-term, it’s a talent drain, marginalized folks flee environments where they’re an afterthought. DEI isn’t a cost center, it’s the ROI of relevance.

The HR Spotlight team thanks these industry leaders for offering their expertise and experience and sharing these insights.

Do you wish to contribute to the next HR Spotlight article? Or is there an insight or idea you’d like to share with readers across the globe?

Write to us at connect@HRSpotlight.com, and our team will help you share your insights.

Recent Posts

Accountability Unlocked: HR and Business Leaders’ Top Strategies

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Accountability Unlocked: HR and Business Leaders’ Top Strategies

Workplace blame-shifting can fracture trust, dampen morale, and hinder progress, posing a stubborn obstacle for countless organizations.

Research, like Gallup’s 2024 findings, reveals that cultures prioritizing accountability can lift employee engagement by 27%, making responsibility a cornerstone of success.

To crack this issue, we consulted HR trailblazers and business executives with a key question:
What are your top strategies for cultivating accountability in your teams?

Their actionable solutions—ranging from clear, trackable objectives to nurturing open, safe communication—provide a roadmap for turning blame into empowerment.

Explore their expert insights to build a thriving, accountable workplace.

Read on!

Alexandru Samoila
Head of Operations, Connect Vending

Recognizing Accountability Boosts Team Confidence

One strategy I use to empower my team members is focussing on recognizing and rewarding accountability.

I make it a point to celebrate when team members take ownership of their tasks and deliver results, to offer positive reinforcement.

For example, when a team member successfully led a project and exceeded expectations, I publicly acknowledged their initiative and contributions.

I think it’s also important to reward team members who may underperform, but take accountability and learn from the outcome, as I think creating an environment of open communication and honesty is very important in increasing employees’ confidence in taking ownership of tasks.

Matthew Ramirez
Founder, Rephrasely

Weekly Reviews Foster Ownership And Growth

In order to cultivate a culture of accountability within my team, I emphasize the importance of establishing clear expectations and fostering an environment in which all members comprehend their roles and recognize the significance of their contributions to the overall success of the organization.

One effective strategy I have implemented is the regular review of progress through weekly meetings. During these sessions, each team member is afforded the opportunity to provide updates regarding their tasks, discuss any challenges encountered, and articulate what resources they require for success. This practice not only ensures alignment among team members but also instills a sense of ownership over their responsibilities.

Furthermore, I encourage team members to establish personal goals and monitor their own progress, thereby promoting accountability for meeting deadlines and delivering high-quality outcomes.

Additionally, I underscore the importance of constructive feedback, encompassing both commendations and areas for improvement, to ensure that individuals feel supported in their professional development.

This comprehensive approach not only reinforces accountability but also nurtures a collaborative and growth-oriented environment.

George Yang
Founder & Chief Product Designer, YR Fitness

Team Debriefs Shift Focus From Blame To Lessons

What’s worked best for us is building a culture where people speak up early, own their role, and learn from mistakes without fear.

Years ago, we had a major overseas order that was delayed, our teams pointed fingers and I brought everyone together and asked this question “What can we do better next time?” People stopped deflecting and started contributing, it shifted the focus from protecting themselves to protecting the team. From that point on, we made a small but powerful change where after every order, we do a 10-minute team debrief. Not to point fingers but to share lessons.

We also made ownership visible. For every project, one person’s name is clearly listed as “owning” it, that simple line reduces confusion and excuses. People step up when it’s clear what’s theirs to lead.

And when mistakes happen, I encourage people to speak up early. One junior staffer once flagged a minor barcode error, it turned out to save us from a customs delay that would’ve cost weeks. We praised her not just for catching it but for saying something.

Natalia Lavrenenko
UGC & Marketing Manager, Rathly

Simple Check-Ins Promote Ownership And Progress

Accountability starts with clear roles. When everyone knows what’s expected–and what success looks like–it’s harder to hide behind excuses. I like using simple check-ins. Not heavy meetings, just quick weekly syncs to see what’s moving forward and where someone’s stuck. That alone changes how people show up and take ownership of their work.

Also helps to lead by example. If something goes wrong on my end, I own it–no fluff, no spin. That sets the tone. And when someone else drops the ball, we talk about what happened and how to fix it, not who to blame. The goal’s always progress, not perfection. That kind of mindset spreads fast once people see it’s safe to be honest.

Michael Benoit
Founder & Insurance Expert, ContractorBond

Milestone-Based Ownership Drives Accountability

In my experience, a highly effective strategy for fostering accountability is implementing milestone-based ownership. Each team member takes full responsibility for a specific part of a project, ensuring they manage timelines, communicate updates, and resolve any issues independently.

During our recent launch of a streamlined bonding process, I assigned a key team member to oversee client onboarding improvements. They were accountable for reducing onboarding time from 7 days to 3 by optimizing workflows and handling client concerns directly.

This approach resulted in a 57% reduction in onboarding time, and we received positive feedback from clients who appreciated the smoother process.

I believe this level of ownership motivates team members to go beyond simply completing tasks-they develop a deeper understanding of the business and their role in its success.

In my opinion, giving individuals clear milestones and measurable goals creates an environment where they feel valued and capable of making impactful contributions.

Danilo Miranda
Managing Director, Presenteverso

Trust And Development Turn Mistakes Into Learning

At Presentverso, improving accountability starts with trust and development. We give each team member control over their assigned goals and performance measures. We use mistakes as learning opportunities rather than assigning blame when things go wrong. I always ask, What can we learn from this?

I also make sure to assist their development through quick online courses or pairing them with experienced individuals. This perspective turns errors into learning opportunities, which leads to people gradually taking on more responsibility.

Joseph Commisso
Owner, WeBuyHousesQuick.ca

Open Communication Builds Accountability Culture

Improving accountability starts with setting clear expectations and leading by example. When everyone understands their role and what’s expected, it’s easier to own results–good or bad.

Open communication is key, so I always encourage honest conversations, especially when mistakes happen. Instead of pointing fingers, we focus on what can be learned and how to move forward.

Regular check-ins, constructive feedback, and recognizing those who take responsibility help build a culture where accountability is the norm, not the exception.

It’s about creating a safe space where people feel supported to grow, not afraid to fail.

David Struogano
Managing Director & Mold Remediation Expert, Mold Removal Port St. Lucie

Clear Ownership Prevents Blame-Shifting

As someone who juggles multiple clients, I’ve found that assigning clear ownership to every project or deliverable is my most effective tactic. Clear responsibility assignment prevents blame-shifting because everyone understands their exact role.

I also make accountability part of the conversation from day one, and I reinforce it with regular check-ins. This strategy allows everyone to take pride in their role, and it’s significantly improved the flow of communication and outcomes.

Samuel Lee
Managing Sponsor, Mighty Vault Storage

Coaching And Communication Foster Accountability

Improving accountability starts with setting clear expectations and fostering a culture where team members take pride in their responsibilities. At Mighty Vault Storage, especially with the unique needs of RV and boat storage, every team member plays a vital role in maintaining the customer experience–from keeping the grounds clean to ensuring smooth move-ins.

When I notice a pattern of shifting blame, my first step is to have an honest one-on-one conversation. I try to understand what’s behind the behavior–whether it’s a lack of clarity, training, or confidence. Then, I focus on coaching rather than criticizing. We also emphasize team ownership during our meetings, where we celebrate wins but also discuss setbacks as a group, reinforcing the idea that accountability is about learning and improving, not finger-pointing.

By encouraging open communication, setting measurable goals, and modeling accountability at the leadership level, we create an environment where people feel both responsible and supported. Over time, this approach builds trust and helps shift the mindset from deflecting blame to stepping up with solutions.

Wendy Rummler
Chief People Officer, Credit Acceptance

Strong Listening Culture for Empowerment and Accountability

At Credit Acceptance, we believe that accountability begins with listening. We empower our team members through our strong listening culture, where their insights don’t just get heard, they directly shape business decisions. In fact, over 70% of our leadership initiatives have been influenced by employee feedback. That level of inclusion builds a sense of ownership, trust, and shared responsibility throughout the organization.

Our leadership team plays a critical role in reinforcing this culture. From onboarding to regular team interactions, our leaders are expected to model ownership, listen actively, and coach supportively. I learned the importance of this early in my own career when I made a significant mistake. Rather than assigning blame, my leader responded with empathy and guidance. That moment shaped how I view accountability: not as punishment, but as an opportunity to learn and grow. Today, that same philosophy underpins how we develop people across the company.

We start building accountability on Day 1. Our year-long cohort-based onboarding program includes regular check-ins and peer support to ensure new team members feel heard, aligned, and set up for success. Throughout the employee journey, we maintain open feedback loops via roundtables and surveys. That responsiveness reinforces a two-way accountability: we expect our people to speak up, and they expect us to listen and act.

We also equip our leaders with training, resources, and discretionary budgets to support and recognize their teams meaningfully. By creating opportunities for employees to lead, take on stretch projects, and grow, we make space for individual ownership and pride in outcomes.

Accountability doesn’t come from top-down enforcement—it comes from a culture where people know their voices matter and where leadership responds with clarity, consistency, and care.

The HR Spotlight team thanks these industry leaders for offering their expertise and experience and sharing these insights.

Do you wish to contribute to the next HR Spotlight article? Or is there an insight or idea you’d like to share with readers across the globe?

Write to us at connect@HRSpotlight.com, and our team will help you share your insights.

Recent Posts

International HR Day 2025: Seizing Opportunities and Tackling Challenges

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International HR Day 2025: Seizing Opportunities and Tackling Challenges

Today, International HR Day, celebrated annually on May 20, shines a spotlight on the evolving role of human resources (HR) as a strategic force in navigating the intersection of technology, humanity, and workplace dynamics. 

This year’s theme, “Humanify AI,” underscores HR’s critical mission to harness artificial intelligence (AI) for efficiency while preserving empathy, trust, and ethical standards. With global events, webinars, and panel discussions led by Chief Human Resources Officers (CHROs), the day celebrates HR’s adaptability and highlights opportunities and challenges in a rapidly changing landscape. 

From AI-driven recruitment to mental health initiatives and diversity, equity, and inclusion (DEI) strategies, HR professionals are addressing a 3.5% U.S. unemployment rate, 5% inflation, and a global talent shortage of 85 million by 2030 (SHRM, 2025; Korn Ferry, 2024). 

Here’s a comprehensive look at International HR Day 2025, its key opportunities, challenges, and essential statistics shaping the future of HR.

The Significance of International HR Day 2025

Launched by the European Association for People Management (EAPM) in 2013, International HR Day recognizes HR’s transformative impact on organizations and employees. 

In 2025, the day takes on heightened importance as HR navigates unprecedented technological disruption, economic pressures, and societal expectations. This year’s focus is on “Humanify AI,” emphasizing HR’s role as a strategic partner in leveraging AI for recruitment, analytics, and employee engagement while ensuring human-centered values. 

Global events today, including virtual panels hosted by organizations like SHRM and CIPD, feature CHROs discussing AI’s ethical implementation, mental health, and workforce resilience. Posts doing the rounds online are celebrating HR’s adaptability, with sentiments like “HR is the bridge between tech and heart,” but also noting persistent challenges in upskilling and trust.

Why It Matters: With 50% of organizations integrating AI into HR processes (Gartner, 2025), International HR Day underscores HR’s mandate to balance efficiency with empathy. As 56% of employees demand ethical AI use (LinkedIn, 2024), HR’s ability to humanize technology is critical to maintaining trust, with 79% higher employee loyalty in trust-focused cultures (MIT Sloan, 2024).

Key Opportunities for HR in 2025

International HR Day 2025 highlights several opportunities for HR to drive organizational success and employee well-being:

Harnessing AI for Strategic Impact: AI is reshaping HR, with 85% of HR professionals using AI tools for tasks like candidate screening, payroll automation, and performance analytics (Betterworks, 2025). AI-driven recruitment boosts hiring speed by 30%, enabling HR to fill roles faster in a tight 3.5% unemployment market (Edelman, 2025; SHRM, 2025). Tools like applicant tracking systems and predictive analytics, highlighted in today’s webinars, allow HR to personalize employee experiences, with 60% of firms using AI to tailor learning programs (ManpowerGroup, 2025). HR’s opportunity lies in becoming a data-driven strategist, with 65% of CHROs prioritizing digital fluency to align talent with business goals (Times of India, 2025).

Enhancing Mental Health and Well-Being: With 31% of U.S. workers reporting job-related stress, up from 30% in 2024 (SHRM, 2025), HR is seizing the chance to lead on mental health. The cancellation of federal mental health grants has shifted responsibility to employers, and 79% of companies with wellness programs report improved loyalty (MIT Sloan, 2024). Today’s discussions emphasize flexible leave, financial wellness, and peer support groups, with 70% of employees preferring customized solutions (Gallup, 2024). HR can leverage these to address the “trust gap,” where only 48% of staff trust their organizations compared to 64% of executives (SHRM, 2025).

Advancing DEI Amid Policy Shifts: Despite backlash, DEI remains a priority, with 56% of employees valuing inclusive cultures (LinkedIn, 2024). HR is exploring innovative approaches like blind resume screening and cultural competence training, with 50% of firms revising DEI metrics post-Executive Order 14173, which ended disparate-impact enforcement (SHRM, 2025). International HR Day panels highlight opportunities to integrate DEI into AI tools, ensuring unbiased hiring, as 60% of HR leaders expect legal challenges to shape compliance (SHRM, 2025).

Upskilling for an AI-Driven Future: The global talent shortage and 25% AI skills gap (ManpowerGroup, 2025) present HR with a chance to lead upskilling. With 40% of tech firms allocating budgets to AI literacy (Edureka, 2025), HR is rolling out certifications and micro-learning, with 70% of enterprises planning AI training in 2025 (Edureka, 2025). Today’s events showcase success stories, like firms reducing turnover by 20% through reskilling (Gallup, 2024), positioning HR as a catalyst for workforce agility.

Key Challenges to Watch

While opportunities abound, International HR Day 2025 also surfaces significant challenges HR must address:

AI Upskilling and Ethical Gaps: Despite 85% AI adoption, only 25% of HR professionals are fully trained in ethical AI implementation, and 60% of HR teams lack AI fluency (Betterworks, 2025; Times of India, 2025). This gap risks biased algorithms and eroded trust, with 70% of employees worried about data privacy (Edelman, 2025). There is an urgency of training, as 50% of HR processes are automatable, potentially displacing roles (McKinsey, 2025).

Navigating Layoffs and Morale: The tech sector’s 61,000 layoffs in 2025, including Microsoft’s 6,000 and CrowdStrike’s cuts, challenge HR to manage morale and transitions (Hindustan Times, 2025). With 60% of laid-off tech workers struggling to find roles within six months (SHRM, 2025), HR must balance automation’s benefits (30% cost reduction, McKinsey) with employee confidence, especially as 25% fear job loss (ManpowerGroup, 2025).

DEI Backlash and Compliance: Executive Order 14173’s end to disparate-impact enforcement complicates DEI, with 74% of employees citing unclear DEI goals as a turnover driver (LinkedIn, 2024). HR faces political and employee pushback, with 60% of initiatives lacking measurable results (Babbel for Business, 2025). Today’s webinars stress data-driven DEI KPIs, but 50% of HR leaders anticipate legal hurdles (SHRM, 2025).

Workplace Stress and Burnout: Rising stress (31% of workers) and a 40% burnout rate among HR leaders (SHRM, 2025) strain resources, particularly in hybrid settings where 40% of remote workers report isolation (SHRM, 2025). HR must innovate beyond generic apps, as 70% of employees demand tailored support, while managing budget constraints amid 5% inflation (Gallup, 2024; SHRM, 2025).

Essential Details and Statistics

AI in HR: 85% of HR professionals use AI, but only 25% are trained in ethical use; AI tools cut recruitment time by 30%, yet 70% of employees fear privacy breaches (Betterworks, 2025; Edelman, 2025).

Mental Health: 31% of U.S. workers report job stress; 79% of firms with wellness programs see loyalty gains, but only 48% of staff trust leadership (SHRM, 2025; MIT Sloan, 2024).

Layoffs: 61,000 tech layoffs in 2025, with HR roles also hit; 60% of laid-off workers face reemployment delays (Hindustan Times, 2025; SHRM, 2025).

DEI: 56% of employees value DEI, but 60% of initiatives lack measurable outcomes; 50% of HR leaders expect compliance challenges (LinkedIn, 2024; Babbel for Business, 2025).

Upskilling: 25% AI skills gap; 70% of firms plan AI training, with reskilling cutting turnover by 20% (ManpowerGroup, 2025; Edureka, 2025; Gallup, 2024).

Economic Context: 3.5% U.S. unemployment, 5% inflation, and 177,000 job additions in April 2025; 1.67M long-term unemployed need HR support (SHRM, 2025; CNN, 2025).

Trust and Loyalty: Trust-focused cultures boost loyalty by 79%; only 60% of employees feel trusted vs. 86% of executives (MIT Sloan, 2024; PwC, 2024).

Global and U.S. Perspectives

Globally, International HR Day events in Europe (EAPM), Asia (APFHRM), and Africa (IPM) emphasize AI ethics and talent mobility, with 65% of global HR leaders prioritizing cross-border hiring to address shortages (CIPD, 2025). In the U.S., SHRM’s focus on mental health and DEI compliance reflects domestic pressures, including a 33% rise in cybersecurity HR roles due to a $215B market (Gartner, 2025). Despite challenges, the general outlook is optimistic about HR’s strategic evolution but cautious about burnout and policy shifts.

Looking Ahead

International HR Day 2025 marks a turning point for HR, with opportunities to lead through AI, mental health, and DEI, but challenges like upskilling gaps, layoffs, and compliance loom large. As 60% of CHROs are now strategic partners (Gartner, 2025), HR’s ability to humanize AI—ensuring 70% of employees’ privacy concerns are addressed—will define its impact. With 85 million talent shortages projected by 2030 (Korn Ferry), HR’s role in reskilling and trust-building is critical, as 79% loyalty gains in trust-focused cultures show (MIT Sloan, 2024). Today’s events, streamed on platforms like HR Grapevine and SHRM, offer a roadmap for HR to thrive in a dynamic world, balancing tech and humanity.

Written by Grok with information sourced from HR Spotlight, SHRM, Times of India, Betterworks, Gartner, Edelman, LinkedIn, MIT Sloan, Gallup, McKinsey, ManpowerGroup, Edureka, Babbel for Business, Hindustan Times, CNN, CIPD, PwC, Korn Ferry.

The HR Spotlight team thanks these industry leaders for offering their expertise and experience and sharing these insights.

Do you wish to contribute to the next HR Spotlight article? Or is there an insight or idea you’d like to share with readers across the globe?

Write to us at connect@HRSpotlight.com, and our team will help you share your insights.

Recent Posts

Loyalty vs. Performance: A Difficult Promotion Decision

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Loyalty vs. Performance: A Difficult Promotion Decision

Imagine this: you’ve got a promotion to fill. 

Do you go with the loyal employee who’s always been there, even if their performance is just okay? 

Or do you pick the rockstar performer, knowing they might be out the door in six months? 

It’s a tough call, and it’s one HR and business leaders face all the time. 

In this post, we’re getting real about those hard decisions. 

We asked top leaders how they approach this dilemma, what factors they consider, and how they balance the need for great performance with the value of loyalty (and the cost of losing someone good!).

Read on!

Chris Giannos
Co-Founder & CEO, Humaniz

Promote Leadership Potential And Adaptability

The decision to promote a loyal but average performer over a high-performing employee who may leave depends on the long-term impact on the team and the organization.

While loyalty is valuable, a promotion should be based on leadership potential, adaptability, and the ability to drive results rather than tenure alone.

If the high performer is a strong cultural fit and contributes significantly to business success, efforts should first be made to retain them by addressing their career growth needs.

If they’re leaving due to a lack of advancement opportunities, a promotion could be a strategic move to keep them engaged and invested in the company.

However, if their long-term commitment is uncertain despite these efforts, promoting someone else who consistently supports team stability and growth might be the better choice.

Loyalty alone doesn’t justify a promotion, but if the average performer has demonstrated leadership qualities, the ability to develop skills, and a strong influence on team morale, they may be the better long-term investment.

The key is to ensure that any promotion aligns with business goals, maintains team motivation, and strengthens leadership without compromising performance.

Noah Musgrove
HR & Marketing Specialist, Liberty Financing LLC

Balance Performance And Long-Term Stability

When deciding between promoting a steady, loyal employee or a high performer who may leave, it is important to weigh both long-term and short-term stability impacts.

A top performer brings strong results, but if they decide to leave early the organization could face disruptions in workflow, morale, and overall team cohesion.

On the other hand, a reliable, consistent employee may not stand out as much in terms of performance but offers dependability and a stronger likelihood of long-term contribution.

The best choice depends on the company’s priorities and the potential for growth in each individual. If the high performer is open to staying with the right support, offering career development or incentives might make sense.

However, if their departure is likely, investing in the loyal employee’s growth and leadership skills can provide long-term stability.

It’s all about striking the right balance between immediate performance and sustainable success!

Vasilii Kiselev
CEO & Co-Founder, Legacy Online School

Balance Performance And Retention Strategies

When it comes to promoting a loyal average employee versus a high-performing potential flight risk, it all comes down to long-term strategy.

At Legacy Online School, we value performance and loyalty equally, but also recognize that every employee has his or her own unique set of strengths to bring to the table.

In this case, I would prioritize the high-potential flight risk performer first, with some major caveats.

The reason is simply this: performance drives results. A top performer is one who can potentially have an immediate and substantial effect on the organization’s growth.

That said, this does not mean loyalty is irrelevant–it most definitely is. Loyalty, however, can be cultivated and nurtured.

The strategic thought behind this is to sit down with the high performer and discuss their career path, hear their concerns, and find out how we can match their aspirations with the company’s aspirations.

If we can retain top performers while providing them with the right opportunities, the ROI will be tremendous.

On the other hand, a loyal average performer can add cultural value but not necessarily move the bottom line in terms of results. The business would then be missing out on growth opportunities.

What really matters, ultimately, is a balance between retention and performance strategies–because performance, though a possible game-changer, is transient, while loyalty can be nurtured and developed with a good strategy.

Alex Cornici
Writer, Cheap Places To Go

Assess Performance And Company Needs

Promoting an employee involves a mix of assessing their current performance, potential for growth, and overall impact on team dynamics.

If faced with choosing between a loyal, average performer and a high-performer who might leave the company, the decision isn’t just about their individual contributions.

The loyal employee’s consistent performance provides stability and can be crucial for maintaining a cohesive team environment. However, their average performance might limit the company’s growth potential, especially in roles that demand high innovation or technical skills.

On the other hand, a high-performing employee often drives significant improvements and results, potentially bringing more value to the company in the short term. Yet, the risk of them leaving could result in a disruptive gap, especially if they occupy a critical role.

This decision depends greatly on the specific needs and strategic goals of the company; for instance, if a business is navigating through a critical transformative phase, the high performer’s cutting-edge skills might be indispensable.

Ultimately, the choice could also reflect on the company’s culture and values, possibly influencing future recruitment and retention.

Carefully weighing these factors will guide a decision that supports not only immediate needs but also long-term stability and growth.

Aviad Faruz
CEO, FARUZO

Align Promotion With Company Goals

The decision to promote a loyal yet average performer over a high-performing but potential flight risk depends on the long-term strategic goals, team stability, and leadership needs of the organization.

While performance is critical, leadership roles require reliability, cultural fit, and commitment–qualities that an average but loyal performer may bring, while a high-performer at risk of leaving might not.

If the role is high-impact and requires immediate results, promoting the high performer with strong incentives and a clear career growth plan might be the best move to retain them and maximize short-term success.

However, if the role demands long-term team stability, mentorship, and cultural reinforcement, then promoting a steady, loyal employee could provide more lasting value, even if their individual output isn’t exceptional.

A strategic middle ground could be tailored retention efforts for the high performer, such as a stretch assignment or leadership training, while investing in skill development for the loyal employee.

Ultimately, promotions should be based on a combination of performance, leadership potential, and alignment with the company’s future goals–not just immediate output or tenure.

Michael Kazula
Director of Marketing, Olavivo

Assess Impact On Team Dynamics

Choosing between promoting a loyal but average performer and a high-performing employee at risk of leaving is complex.

Promoting loyalty fosters a positive culture and reduces turnover, enhancing team stability.

However, the potential loss of a high-performer could disrupt projects and knowledge flow.

Each option requires careful assessment of how they impact team dynamics and the company’s long-term objectives.

Rob Clegg
Senior SEO Manager, Exclaimer

Promote Based On Merit And Transparency

In any company, the most essential way to manage expectations is to create a culture that’s based on merit and transparency.

When someone is offered a promotion, it should be obvious to everyone why the person was chosen, which achievements and what skill set recommends them for the promotion.

Resentment happens when employees feel like they are owed a promotion based on tenure alone, which should not be the case.

If someone has not showcased any interest in expanding their responsibilities, leading the growth of the business, there is no reason they should be promoted.

This is what employees need to understand and where transparency can have such a huge impact, effectively communicating what a promotion requires.

It will automatically create a natural selection, where many employees will not want the added responsibility for the increased reward and will develop an appreciation of those who do.

Anna Blood
Founder & Managing Attorney, Blood Law PLLC

Prioritize Internal Promotions And Growth

When a company grows rapidly, I believe it’s important to prioritize promoting from within.

As a business leader, I want to reward and recognize my existing team for their hard work and leverage their knowledge and experience.

If multiple qualified individuals are interested in a promotion, consider factors such as their performance, potential for growth, and their long-term goals.

Transparent communication is key to ensuring that everyone feels valued and understood, even if they don’t get the promotion.

It’s also crucial to avoid overwhelming employees with excessive responsibilities.

If someone is promoted, ensure that their previous role is filled to maintain productivity and prevent burnout.

Kate O’Sullivan
Founding Partner & Executive Coach, CoachSelect

Reward High Performers Without Management

This is a common situation, and I often hear companies worrying about what to do when they have a high performer and no leadership position to promote them to.

However, companies are overlooking the reality that not everyone wants to be a people manager.

In fact, I hear it all the time– I want to progress in my career, but I don’t want to manage a team.

So a great solution is for companies to think of ways for high performers to expand their impact without leading a team. This could be through leading high-profile projects, giving them more autonomy on what work to pursue, or increasing the scope of their responsibility.

Another key consideration is that high performers want to be rewarded for their hard work, which means compensation has to be a part of the retention conversation. If the only way to reach a certain salary level is to become a people manager, companies will inevitably lose top talent.

Make sure that compensation is aligned to the incentives of achieving team and company goals.

If high performers know what their expectations are, are incentivized by fair and competitive compensation for their efforts, and are a part of open conversations about career progression, you have a recipe for keeping top employees retained and engaged.

Levi Hemingway
Co-Founder, City Storage By Nomad Capital

Prioritize Consistency And Team Stability

At City Storage USA, promoting a loyal yet average performer over a high-performing but potential flight risk would depend on the long-term impact on the business.

Just like in storage, where long-term occupancy and stability often outweigh short-term gains, we prioritize consistency, reliability, and growth potential when making leadership decisions.

One key consideration is cultural fit and team stability.

A loyal employee who embodies our values, supports the team, and is invested in the company’s mission may be a better long-term leader than someone who delivers top results but is disengaged or likely to leave.

Leadership is about more than just numbers–it’s about trust, collaboration, and the ability to motivate others, much like how a well-managed storage facility thrives on strong customer relationships rather than just maximizing unit rentals.

However, performance cannot be ignored.

If the high performer has the potential to stay with the right incentives, we would explore ways to retain them, such as offering professional development opportunities, customized incentives, or leadership training.

If they remain a flight risk despite these efforts, promoting a steady and dependable team member who is willing to grow into the role may ultimately be the smarter choice for long-term stability and business continuity.

The HR Spotlight team thanks these industry leaders for offering their expertise and experience and sharing these insights.

Do you wish to contribute to the next HR Spotlight article? Or is there an insight or idea you’d like to share with readers across the globe?

Write to us at connect@HRSpotlight.com, and our team will help you share your insights.

Recent Posts

The Art of Retention: Negotiating with a  Top Performer Considering Another Offer

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Tony Deblauwe - Terkel HR Spotlight

The Art of Retention: Negotiating with a Top Performer Considering Another Offer

The moment a top performer discloses a competitive job offer, a delicate negotiation begins. 

The outcome of this negotiation can have significant implications for the organization, impacting productivity, morale, and overall success. 

In this post, we introduce you to the art of retaining top talent in the face of competitive offers. 

We gathered insights from experienced HR and business leaders, asking them to share the urgent retention strategies they rely on for successful negotiations. 

Their responses offer a valuable perspective on how to approach these critical conversations, craft compelling counteroffers, and ultimately, convince your most valuable employees to stay.

Read on!

Dandan Zhu
Founder, CEO, DG Recruit

Understand Employee Motivation

Whenever counteroffer opportunities arise, the risks on both sides are significant.

Here are some factors to consider:

Why is the employee choosing to leave?: 

Besides the financial end of things which I’ll dive into shortly, THIS is the core issue to understand.

If the core issue of WHY the employee wants to leave is resolvable, a counteroffer endeavor would be worth exploring.Not only does the issue have to be resolvable, the solution needs to be SUSTAINABLE.

Many companies throw up a hail Mary to salvage the employee in the short term. THIS is why we have an industry average of 6-12 months of the employee quitting again.

To mitigate this risk, the employer has to have an honest discussion around their ability to resolve the employee’s RFL (reason for leaving) for longer periods of time.

Is it a money grab effort or a sincere financial adjustment?

Money matters and that’s a fact. Nobody goes to work for fun!

That said, is the financial ask reasonable per market rates or is the employee leveraging external factors to enrich themselves unreasonably and opportunistically?

How badly does the employer want to retain the departing employee?

If this person is a once-in-a-lifetime top performer, serious considerations need to be had because their departure could be detrimental to the wider team.

However, if the top performer possesses a terrible personality that is tolerated, how much should the employer fight to keep them on?

In Conclusion

Counteroffers, as much as people advise against them, happen in the real world – surprisingly more frequently than people think.

Handling them is an art. How you decide to proceed is either going to save you tens of thousands of dollars or COST you that amount (or more!).

Of course, replacing staff is never cheap – resources, both internal and external, along with losing effectiveness, getting behind on projects, opportunity cost, etc add up to a monstrous level quickly.

Often, counteroffers are a legitimate way to make the best out of a bad situation.

As attractive as that potentiality is, counteroffers could also fail within short order as employers find their staff leaving again in 6 months’ time in which they’ve now spent more money just to lose, yet again!

Facing both possibilities, both sides need to be as honest as possible about the issues they’re facing to reach a happy medium.

Otherwise, walking away, while painful in the short term, ultimately is the right decision.

Tony Deblauwe - Terkel HR Spotlight

Tony Deblauwe
Global HR Leader

Focus on Long-Term Engagement

When a top performer discloses a competitive offer, the key is to approach the conversation strategically rather than reactively.

Retention isn’t just about counteroffers–it’s about understanding why they’re considering leaving in the first place and addressing their long-term engagement.

The first and most important step is to listen.

Too often, leaders assume money is the sole driver, but in many cases, it’s about career growth, leadership, work-life balance, or a combination of factors.

If compensation is the only issue, matching or exceeding an offer might work, but if deeper concerns exist, simply increasing pay won’t create lasting retention.

Once I understand their motivations, I focus on three core areas: career acceleration, compensation, and executive alignment.

If career growth is their main concern, I explore ways to fast-track development opportunities, such as placing them on high-visibility projects, expanding their scope, or providing direct access to senior leadership.

High performers stay where they see a compelling future, and organizations that proactively create those pathways are far more likely to retain their best talent.

If the offer is significantly higher in compensation, I look beyond base salary to consider equity, retention bonuses, or performance-based incentives.

While competitive pay matters, top performers also want to feel valued in ways beyond their paycheck.

Beyond money and promotions, engagement often comes down to whether an employee feels truly seen and valued by leadership.

A direct conversation with an executive about their impact and future within the company can make a significant difference.

High performers want to know their work is recognized at the highest level, and sometimes, meaningful recognition and influence matter more than a salary increase.

Ultimately, the goal isn’t just to win this negotiation–it’s to ensure they don’t feel the need to explore external offers again in six months.

If the gap between what they want and what the company can realistically offer is too wide, a respectful and well-supported transition is better than a desperate counteroffer.

Real retention strategies start long before a competitor comes knocking.

When companies proactively create an environment where top talent sees a clear, compelling future, retention conversations become far less frequent.

Mohammed Kamal
Business Development Manager, Olavivo

Tailor Offers to Priorities

When a top performer receives a competitive job offer, immediate retention strategies are vital for negotiation.

Begin by understanding their motivations, such as salary, career growth, work-life balance, or company culture.

For example, a tech firm retained a key software engineer by having an open dialog about their reasons for considering the new offer, ultimately leading to a tailored counter-offer that addressed their priorities.

Justin Abrams
Founder & CEO, Aryo Consulting Group

Address Needs Quickly

It’s a sign you need to act fast. You don’t know exactly what’s driving their decision, but you do know that if you don’t address it, you risk losing a key team member.

Start by having an open conversation to find out if it’s about salary, career growth, or something else.

If it’s about money, consider matching or improving the offer, and if it’s about career opportunities, show them how they can grow within your company.

It’s not just about salary; think about what your company offers beyond pay, like flexibility or career advancement. Highlight these benefits to show that staying with you offers more than just a paycheck.

Ultimately, moving quickly and offering real value can make the difference between retaining or losing your top performer.

If you can address their needs, they’ll likely stay. But if not, you’ll have valuable insights to improve your future retention strategies.

Kerri Roberts
Founder & CEO, Salt & Light Advisors

Analyze Employee Data

Context is key in this conversation.

Has there been frustration in the past shared by this employee? Did you know they were potentially looking for another role?

Is there conflict between the employee and a colleague? Did they ask for increased responsibilities or an increase in pay and were denied?

Whether this is out of the blue, or there was a known reason they were searching for another role, I would work with your HR team (or the person in charge of employee compensation to learn the following):

– What was the employee hire date (what is their tenure)?

– What pay changes have occurred during their tenure

– What did the last performance review show?

– Where are they paid in the position pay band (10th percentile, 25th, median, 75th, 90th)?

– If they are a top performer and there is room for pay growth, how much?

– What is your philosophy on one-time bonus payouts versus base pay increases?

Ideally, if they are a performer and a cultural fit, we work to salvage them.

However, don’t waste the chaos.

While it’s painful to replace an employee, when they share they have another offer, it’s a great time to breathe and ask yourself – could we draw a better card from the deck?

We don’t have to counteroffer everyone. It’s not always the right choice for the organization.

Sometimes we just wish them well. But, if they ARE a great performer and they DO shine in the culture, come prepared with the answers to my questions above, listen to their reasoning, and see what you can do to make it work.

Aviad Faruz
CEO, FARUZO

Offer Tailored Incentives

If a top performer discloses a competitive job offer from a competitor, my urgent retention strategy would focus on understanding their motivations, offering tailored incentives, and reinforcing long-term career value.

Instead of immediately countering with money, I would start with a one-on-one conversation to understand what’s driving their decision–is it compensation, career growth, work-life balance, or leadership concerns?

Once I identify the key motivators, I would take a customized approach to retention.

If compensation is the main factor, a competitive counteroffer combined with performance-based incentives (such as bonuses or stock options) could reinforce their financial future.

However, if the issue is career stagnation, I’d outline a clear growth plan with leadership opportunities, mentorship, or skill development.

If work-life balance is the concern, flexibility in schedule or remote work options could make a difference.

Beyond immediate retention, I’d reinforce their long-term value within the company, showing how their contributions impact our success and ensuring they feel recognized and challenged.

I’d also assess if the broader team’s retention risks need addressing, turning this into a learning opportunity.

The key to successful negotiation isn’t just matching the competitor’s offer–it’s making the employee feel like their best opportunities still exist within the company.

Susan Snipes
Head of People, Remote People

Discuss Growth Opportunities

If my top performer were considering a competitive job offer, I would find out what their main motivating factor was for considering the move.

If the main concern was career advancement, I would discuss possible career growth opportunities within my firm.

I would be open to creative solutions like offering a title change and more interesting projects. Additional training opportunities could also be provided.

If my top employee’s main concern was compensation or benefits-related, I would evaluate what changes could be made to my total rewards strategy. For example, maybe I could offer a retention bonus.

As long as I know the main driving factor behind them considering leaving, I can work with them and think creatively to come up with a retention solution.

Michael Kazula
Director of Marketing, Olavivo

Assess Affiliate Motivations

To retain top-performing affiliates facing competitive job offers, it’s crucial to understand their motivations through one-on-one assessments.

During these meetings, discuss their career goals, what they value in your network, and the appealing aspects of the new offer.

This personalized approach can help negotiate effectively and ensure affiliates feel valued and motivated to stay within your network.

Ambrosio Arizu
Co-Founder & Managing Partner, Argoz Consultants

Offer Various Incentives

To retain a key employee who has received an offer from a competitor, the urgent strategies I would implement are:

Recognition and appreciation: Show them how crucial they are to the team.

Example: “Your work has been essential to the success of project X, and without you, we wouldn’t have achieved these results.”

Competitive offer: Evaluate and improve their compensation package, including salary, bonuses, and benefits.

Example: “We are willing to increase your salary and offer you more benefits to match what they are offering.”

Professional development: Offer growth opportunities and new challenges within the company.

Example: “We would propose you lead the new project Y, which will be a great opportunity for your career.”

Flexibility and well-being: Offer improvements in work-life balance.

Example: “We can offer you more flexibility in hours and remote work so you can enjoy more time with your family.”

These actions demonstrate a genuine commitment to their development and well-being.

Alex Cornici
Writer, Cheap Places To Go

Reassess Employee Value

When faced with the dilemma of a top performer considering a competitive job offer, the priority shifts swiftly to reassessing and readjusting the value you’re providing them.

It’s essential to engage in a candid and constructive conversation to understand their professional aspirations and any possible dissatisfaction they might be experiencing.

During this discussion, highlighting their invaluable contribution to the team and forecasting their potential growth within the company can rekindle their alignment with your organization’s vision.

An effective retention strategy would include a competitive counteroffer that addresses not only monetary compensation but also opportunities for career progression, additional responsibilities, or flexibility, which might align better with their current life situation.

It can also be useful to personalize benefits, such as professional development resources, enhanced work-life balance options, or even equity stakes, depending on what resonates most with your employee.

Often, employees are looking for signals that the company values their contributions and is actively investing in their future.

In the end, demonstrating a clear path of growth and fulfillment within the company can be a powerful motivator for an employee to stay and grow with the team.

The HR Spotlight team thanks these industry leaders for offering their expertise and experience and sharing these insights.

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