top talent

The Hidden Cost: Prioritizing Technical Skills Over Creativity and EQ

The Hidden Cost: Prioritizing Technical Skills Over Creativity and EQ

In an era increasingly defined by Artificial Intelligence, a critical paradox is emerging within the workforce. 

While technical proficiency in AI tools is often heralded as the paramount skill, a growing consensus among business leaders and HR professionals suggests that technical skills alone make someone a good operator of existing tools, but creativity and emotional intelligence are what truly separate those who merely use AI from those who multiply their impact with it. 

Organizations are realizing that exclusively prioritizing technical prowess risks creating workforces that are efficient yet uninspired, capable of execution but lacking the vision to solve meaningful problems or understand human needs. 

This article explores why cultivating creativity and emotional intelligence is not just a “soft skill” luxury, but a strategic imperative for any leader looking to future-proof their team and genuinely leverage AI’s transformative power.

Read on!

AI Demands Creativity And Eq, Not Just Tech Skills

We’re creating workforces that can’t leverage AI effectively. Technical skills alone make someone a good operator of existing tools, but creativity and emotional intelligence are what separate those who get replaced by AI from those who multiply their impact with it.

The real value now lies in knowing what problems are worth solving, having the taste to recognize good solutions from mediocre ones, and the emotional intelligence to understand how people will actually use what you create. 

AI can generate code, content, and analysis faster than any human, but it can’t decide whether that output is meaningful, relevant, or delightful.

In remote teams especially, these skills become even more critical. The people who can sense what their distributed teammates actually need, who can craft the right prompts to get AI tools to produce valuable work, and who can synthesize multiple AI outputs into something genuinely useful become indispensable.

 Everyone else becomes expensive overhead in a world where AI can handle purely technical execution.

Technical Skills Without Soul Create Meaningless Solutions

I’ve seen it firsthand—when teams focus only on technical chops and sideline creativity or emotional intelligence, they lose soul. I think the biggest cost is that we start building solutions that are efficient but not meaningful. I’ve worked in rooms full of highly skilled people where no one felt heard, and it killed collaboration. Like, you can’t code your way out of poor team dynamics or a lack of empathy.

I’ve watched brilliant products flop because no one stopped to ask, “How will this make people feel?” I’ve also seen creative thinkers—who don’t always have the loudest voices—bring in game-changing insights that data alone never would’ve surfaced. But if we don’t value that kind of thinking, it gets buried.

I think the real loss is human connection. We risk creating cold, rigid systems in a world that desperately needs warmth and flexibility. We don’t just need smart people—we need emotionally smart ones too.

Please let me know if you will feature my submission because I would love to read the final article.

I hope this was useful and thanks for the opportunity.

Derek Pankaew
CEO & Founder, Listening

Spaceship Without Compass: Technical Prowess Lacks Direction

To your question—here’s the thing about sidelining creativity and emotional intelligence in favor of technical prowess: it’s like building a spaceship with no idea where you’re going.

You might get really good at calculating thrust, optimizing engines, even surviving zero gravity—but you’ve got no compass. Emotional intelligence and creativity are that compass. Without them, you don’t just lose direction—you start solving the wrong problems really well.

The biggest cost? You train teams to optimize for efficiency at the expense of meaning. Engineers end up shipping technically brilliant features that users don’t care about. Product teams run faster but become reactive instead of inventive. Worst of all, company culture calcifies. People stop asking, “Should we be doing this at all?” and focus only on “How can we do this faster?”

It’s like replacing your gut instinct with a spreadsheet. You’ll get some wins in the short term—but long term, you lose the messy, human spark that makes a product unforgettable and a company magnetic.

Tim Watson
Founder & Director, Oakridge Renovations

Cookie-Cutter Outcomes: Technical Skills Need Human Touch

Trying to marginalize creativity and emotional intelligence in favor of technical expertise may remove the human element to make a project special.

Technical skills are notable but they tend to lack the finesse of what a client needs and therefore create cookie-cutter outcomes.

Creativity is the field of exclusive ideas, and emotional intelligence is the key that guarantees that a space should be individual and close to people who inhabit it. As an example, kitchen remodel is not only adding cabinets and appliances; it is about knowing how a family lives, what can make their day to day life easier and how the design can be made personal.

By concentrating solely on technical skills, there is a risk to create spaces that are technically perfect and working but have no soul. Such disconnect may lead to dissatisfaction, despite a great-looking project that is on paper. They desire more than accuracy, they desire the space that would inspire the feeling that they own, that they identify with and that suits their lifestyle.

Technical Skills Expire, Creativity and EQ Endure

The issue here is that technical chops simply aren’t as long-lasting. Sooner or later, those skills will be obsolete and need to be replaced. That just isn’t true about creativity and emotional intelligence. They’re always valuable, and the more you use them, the better you get with them.

People who are creative are also more likely to take to new training well.

Technical Focus Sacrifices Cultural Cohesion and Adaptability

The real issue here is that it neglects the things that make a company culture cohesive and whole.

If all you’re hiring for is a specific set of technical skills, you’re going to end up short on skills like communication, creativity, lateral thinking, and adaptability. You may be great at doing specific technical tasks, but you’ll struggle to implement them more widely.

Balanced Skills Ensure Holistic Professional Development

Neglecting creativity stifles innovation and limits problem-solving approaches. Overemphasis on technical skills risks creating a workforce less adaptable to change. Undervaluing emotional intelligence weakens team dynamics and leadership effectiveness.

Reducing focus on empathy impacts customer relationships and user-centric design. Ignoring these traits diminishes the ability to navigate complex, human-centered challenges. Balancing technical expertise with soft skills ensures holistic professional development.

Ishdeep Narang, MD
Child, Adolescent & Adult Psychiatrist & Founder, ACES Psychiatry, Orlando, Florida

Adaptability Deficit: Our Greatest Professional Vulnerability

The Adaptability Deficit: Our Greatest Human Cost

The biggest cost of sidelining creativity and emotional intelligence is that we are systematically dismantling our single most vital survival trait: adaptability. We are training a generation of specialists for a world that will no longer exist by the time they master their craft, leaving them incredibly fragile in the face of change.

Technical skills have a rapidly shrinking shelf-life. In contrast, emotional intelligence is the timeless operating system for all other learning, while creativity is the engine that allows us to pivot when those old skills become obsolete.

In my practice, I see the consequences of this imbalance daily. It appears as successful professionals feeling a profound sense of emptiness, or as bright young adults paralyzed by anxiety when facing a problem without a clear formula. They have the ‘chops,’ but lack the emotional resilience to cope with failure or the creative insight to forge a new path.

It’s like meticulously building the world’s most powerful engine but forgetting to install a steering wheel. We are creating powerful capabilities without the wisdom or flexibility to navigate the complex, winding road of the future.

Archie Payne
Co-Founder & President, CalTek Staffing

Technical Skills Solve Today, Creativity Solves Tomorrow

In my experience as a technical recruiter, prioritizing hard skills at the expense of creativity and emotional intelligence is one of the most costly mistakes a company can make, especially in IT and engineering. The biggest cost isn’t just team friction or missed collaboration. It’s the loss of innovation.

Technical skills solve today’s problems. Creativity solves tomorrow’s. When teams lack the ability to think laterally or challenge assumptions, they stagnate. Engineers who only follow the spec sheet may hit their KPIs, but they rarely push boundaries or create real breakthroughs.

We see this in team dynamics too. Most of our clients work in cross-functional environments where engineers collaborate with designers, project managers, and stakeholders. Without emotional intelligence, empathy, and communication, technical experts often become bottlenecks rather than contributors. In worst-case scenarios, this disconnect leads to failed projects and damaged reputations.

That’s why we don’t just screen for technical chops. We actively assess interpersonal skills, adaptability, and collaboration style. A developer who can’t navigate human dynamics may be harder to place than one missing a niche programming language.

Ultimately, when companies deprioritize EQ and creativity, they risk building technically competent but culturally fragile teams. That kind of imbalance always costs more in the long run in the form of missed innovation, low morale, and stalled growth.

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.

Industry Essentials: All About Crafting an Impressive Resume

Industry Essentials: All About Crafting an Impressive Resume

Star Employee Retention: Strategies to Winning the Negotiation

Star Employee Retention: Strategies to Winning the Negotiation

It’s the conversation every manager dreads in a hyper-competitive job market. 

Your top performer, the engine of your team’s success, sits across from you and says the words that trigger immediate alarm: “I’ve received another offer.”

In an instant, you’re on the clock. 

This isn’t just about losing one employee; it’s about the potential loss of critical projects, team morale, and institutional knowledge, not to mention the staggering cost and time required to recruit a replacement of similar caliber. 

In a talent landscape where skilled professionals are more mobile than ever, your reaction in these first few hours is a critical test of leadership.

Do you immediately match the offer? Do you focus on non-monetary perks? Or is it already too late? 

This high-pressure negotiation requires more than just a budget; it requires a strategy. 

To build a playbook for this exact moment, the HR Spotlight team asked a panel of seasoned HR and business leaders a crucial question:

“If your top performer discloses a competitive job offer from a competitor, what urgent retention strategies would you bank on for a successful negotiation?”

Their responses offer a masterclass in crisis management, revealing the blend of emotional intelligence, financial acuity, and strategic thinking required to navigate this critical conversation and retain the talent that matters most.

Read on!

Tiffany Ingram – Luxe Link Business Solutions

With 15+ years in HR, I’ve worked across industries like tech, finance, and healthcare—so I know firsthand that retaining top talent isn’t just about throwing money at the problem. 

It’s about building a culture where people feel valued, challenged, and seen.

When a top performer gets a competitive offer, the key is understanding their why. Is it career growth? Flexibility? A need for more leadership exposure? 

Once you know that, you can craft a retention strategy that truly resonates. 

If growth is the driver, show them their next steps. If work-life balance is key, rework their schedule. And if they just want to be seen, give them executive visibility and high-impact projects.

Retention isn’t about reacting when they’re halfway out the door—it’s about making them never want to leave in the first place.

Victoria Milford – Reward Heads

Everyone likes to feel special and top performers even more so, hence personalise and don’t be generic.

Meet with them, note the offer and understand if a counter offer would be possible. Express appreciation for their contribution and ensure they know how valuable you see them. Understand their motivation for the move— salary, career growth, work-life balance, company culture.

Counter with a compelling offer that aligns with their priorities, – salary increase, performance-based bonuses or LTIPs to keep them here long term. If it is about promotion, provide a clear career path with mentorship, new responsibilities or opportunities to enable them to grow.

Finally, address any workplace concerns and reinforce company culture – i.e. emphasising unique benefits like flexibility, recognition, or meaningful work.

But never promise something that you cannot deliver or you’ll be back here again in no time.

Rachel Platt – PLATTinum Consulting

The best way to retain a top performer is to not wait until they have a competitive offer.

Strong leaders have ongoing conversations about career aspirations, growth opportunities, and what makes their employees feel valued.

Every individual’s motivation is different. But if a competitive offer is on the table, the most powerful thing you can do is to ask questions. “What about this opportunity is compelling enough to consider leaving? And what would it take to change your mind?”

Guessing which lever to pull, whether it’s compensation, flexibility, career growth, or something else, rarely leads to long-term retention.

Instead, listening with curiosity and responding with a customized solution increases the likelihood of keeping your best people invested in your organization’s success.

Iqbal Ahmad – Britannia School of Academics

As a CEO, I have come across this type of situation a couple of times and retaining top talent is a priority. In this situation, my first and foremost approach is to look for the driver that causes him to think of leaving. 

I make my plan that directly aligns with their aspirations. If pay range is an issue, I test the viability by giving a counteroffer. 

A top performer who has spent considerable time in my organisation should know how much I stress over the professional development of my employees. 

I would definitely highlight those so they can focus on their long-term benefits. 

In addition to keeping top performers for the long run, I want to re-engage and motivate them and increase their dedication to our common purpose.

Luca Dal Zotto – Convert Bank Statement

As a business owner at Convert Bank Statement, I’ve started and run businesses where retaining high performers is key to our success. When a high performer receives an imminent competitive offer, there is no time to lose.

This is what gets the job done:

Act Fast and Personalize Your Approach: High performers must be rewarded. In a LinkedIn survey, 94% of employees would stay longer if their organization invested in their professional development. Offer a personalized retention package, like a salary increase, performance bonuses, or stock options.

Career Advancement Opportunities: A Gallup survey found that 87% of millennials prioritize professional development. Provide a clear career development opportunity, mentorship, or leadership development to show interest in their long-term success.

Flexibility and Work-Life Balance: According to a Gartner survey, 43% of employees are more productive if they work with flexible work arrangements. Offer remote work, flexible working hours, or additional vacation days to meet employees’ personal needs.

In my experience, investing in these areas not only keeps the best talent but also boosts morale and productivity throughout the team.

Marco Manazzone – Zzone Homes

Initiating an open dialogue with the employee is a pivotal step for me.

I address the situation in a non-confrontational manner, expressing my appreciation for their work and my desire to understand their career aspirations.

This conversation can provide me with valuable insights into what they value in their professional life and what might be tempting them to consider other offers.

By showing that I am willing to listen and respond to their needs, I can often counter the allure of a competitor’s proposal with tailored opportunities within my own organization.

Hayden Cohen – Hire With Near

If you want to retain your top performers, you need to know what it is they’re after.

I’ve had great employees who just wanted to be left alone to do what they’re good at, and ones who wanted to reach the C-suite by age 30.

No matter what their goals are, making sure they’re being fairly compensated is an essential first step. If someone can make more money somewhere else, they’re probably going to do it sooner or later.

Beyond that, take the time to talk with your top-performing employees (and all the others too) about their career goals, and look for ways to help them reach them.

Offer the chance to learn new skills, greater levels of responsibility, more flexibility, or whatever else they’re after.

If they feel like you’re working to support them and make their career what they want it to be, they’re going to stick around.

Edward Hones – Hones Law

Retention Strategies with Legal and Practical Considerations: When a top performer discloses a competitive job offer, employers should first tread carefully, especially in how they respond.

From a legal standpoint, it’s critical to avoid knee-jerk counteroffers that could inadvertently create contractual obligations or discrimination claims if other employees in similar roles aren’t offered the same retention incentives.

Instead, I advise employers to take a structured approach: acknowledge the offer professionally, gather information on the employee’s motivations, and assess whether a retention package aligns with the company’s long-term goals.

If pay is the primary issue, a salary adjustment might be warranted, but if the concern is career growth, then a clear development plan or leadership track should be presented.

Balancing Retention with Legal and Cultural Considerations: Employers should also be mindful of potential non-compete or confidentiality concerns, but this must be handled lawfully, overly aggressive restrictions can be unenforceable or even backfire by pushing the employee away.

Instead of reactive counteroffers, I encourage companies to take a proactive approach to retention by ensuring competitive compensation, fostering a strong workplace culture, and offering long-term incentives like stock options or flexible work arrangements.

If the employee ultimately decides to leave, the company should ensure a professional offboarding process that protects intellectual property and maintains goodwill.

The goal is to retain talent strategically while safeguarding the business from legal and reputational risks.

Soumya Mahapatra – Essenvia

If you don’t know what your top performers’ goals are, you aren’t going to be able to retain them effectively.

Regular raises are a good place to start, but you’ll likely need more than that to keep your best talent.

Work with them to put them on a track for the job they’re really after, whether that means staying in their current role for the foreseeable future or moving up into leadership.

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.

Retaining Top Talent: The Counter-Offer Playbook

Retaining Top Talent: The Counter-Offer Playbook

It’s no less than a leadership test in today’s job market. 

Your star player, the engine of your team, drops the news: “I have another offer.”

Suddenly, the pressure is on. The clock is ticking, and the stakes are huge. 

You’re not just fighting to keep one person; you’re fighting to protect your projects, your team’s momentum, and all the valuable knowledge they hold. 

In a market this hot, finding a replacement is a costly and time-consuming battle.

With top talent more mobile than ever, your next move is everything. 

Do you jump to match the salary? Highlight the culture and growth opportunities? 

This isn’t just a budget decision; it’s a strategic play that requires a smart and ready playbook.

To get that winning playbook, the HR Spotlight team went straight to the experts—seasoned HR and business leaders who navigate these high-stakes situations for a living. 

We asked them for their best advice and their answers are a powerhouse guide to blending sharp negotiation with smart leadership, giving you the tools you need to keep the talent you can’t afford to lose. 

Read on!

Tawny Lott Rodriguez
Fractional CHRO & Consultant, rowlandhall

Tawny Lott Rodriguez

If my top performer gets a competitive offer, my first move is a real, human conversation. Not just about money, but about “why” they’re considering leaving.

If I can match the salary, great. But let’s be real, most HR folks don’t have that luxury.

So I dig deeper. Do they feel stuck? Want more growth? A different manager?

Sometimes, small changes can make a big impact.

I’ve had honest talks where people realize they don’t actually “want” to leave, they just need something to get excited about again.

I always tell them, “The grass is greener where you water it.”

If they still go, I make sure they leave feeling valued because people boomerang back more often than you’d think.

Jonathan Faccone
Managing Member & Founder, Halo Homebuyers

Jonathan Faccone – Halo Homebuyers

Adjusted Pay: Look at and maybe change their salary package to match the important job they do and what others in the market earn, making sure it is fair and motivating.

Career Development Opportunities: Help them grow professionally inside the company, like chances for leadership positions, advanced training classes, or new project tasks that match their interests and job goals.

Work-Life Balance: If possible, give more flexible work conditions. This can be remote work choices or changed hours to fit their lifestyle needs better.

Kimberly DeCarrera
Fractional General Counsel & CFO, Springboard Legal

Kimberly DeCarrera – Springboard Legal

The most effective strategy will be the one that is tailored to the particular employee. It will require a discussion of what they desire out of the job – more money, more time off, hybrid or remote work, better career development opportunities, or a better boss.

My question is whether you want to keep the top performer after they come to you with a job offer from a competitor.

In my experience, any strategies that you counter with will only last about six months, before a new offer is accepted. If you use that time to onboard or train a new top performer, then it will be time and money well spent.

But if you have a top performer that is actively seeking new employment or entertaining offers, there is a reason.

Many strategies are going to end up being too little, too late. Even with a successful counteroffer, you should prepare to lose the employee in the short term.

Madan Chaolla Park – Zatjob

When top talent comes with a competitive offer and asks for a raise the situation is usually rather binary (or black and white).

Scenario 1: They love their job, they’re thriving, but you’ve been underpaying them. Give them the raise—no hesitation. You dropped the ball on market rates, and now it’s time to fix it.

Scenario 2: If they aren’t nice, and are not having a good experience at your company you need to let them go. If you give them a raise now, they are still going to search for another job in the meantime – so it’s just holding them for a few more months. If you start losing much of your top talent it’s a very bad sign.

At the risk of sounding cliche – the no. 1 reason people leave jobs is bad managers. So the real strategy to keep talent is having a great workplace (or paying them absurdly high rates, but then you wouldn’t have this problem).

Wesley Kang – 1099Cafe

When my top agent at 1099cafe got poached last year, I skipped the typical counter-offer panic.

Instead of just matching their offer, I sat down with her for an honest conversation about career trajectory. Turns out money wasn’t the main driver – she actually wanted more leadership opportunities and felt stuck. Within 48 hours, I restructured our team to put her in charge of our new agent training program with a revenue share component.

What worked wasn’t throwing cash at the problem but addressing the actual reason she was looking elsewhere. The competitor offered slightly more money but couldn’t match the entrepreneurial opportunity I created.

The key lesson is that when top performers get offers, don’t just negotiate compensation. Quickly identify and solve for their real motivations. Sometimes it’s recognition, sometimes it’s growth potential, rarely is it just about the base commission split.​​​​​​​​​​​​​​​​

Austin Rulfs – Zanda Wealth

When a top performer from my team brings up a competing employment offer, it is prudent for me to pay attention to their priorities. Whether their objectives are recognition, work-life balance, professional growth, or financial gain, there is a need to keenly understand their underlying motivations. Employees often only want to feel appreciated and heard.

Offering flexibility may also be beneficial in my experience. One of my important team members, for instance, appreciated the leeway I offered in the form of family time but even then, they were still thinking about accepting a higher-paying offer from a rival. I offered them a greater pay and made a slight change to their function to give them more responsibility after some candid discussion.

Maintaining open lines of communication and demonstrating an open mind as a leader are paramount in retaining excellent staff.

Kristie Tse
Founder & Clinical Director, Uncover Mental Health Counseling

Kristie Tse – Uncover Mental Health Counseling

When a top performer shares they have a competitive offer, it’s essential to act promptly and thoughtfully.

First, I would invite an open conversation to understand their motivations; financial, growth opportunities, or work-life balance. Using my experience as a therapist, I know that validation and understanding go a long way.

Once their needs are clear, I’d tailor a retention plan, whether it’s creating a pathway for advancement, offering additional resources, or flexible arrangements to align with their goals.

It’s important to address underlying issues that led them to explore other opportunities, not just focus on a quick fix.

Most importantly, I’d stay transparent and communicative during negotiations to build trust and show their contributions are valued.

Jon Hill
Chairman & CEO, Energists

Jon Hill – Energists

When you build a high-performing team, it’s natural that competitors will take notice and try to lure some of those exceptional employees away. Because of that, I’d say it’s smart for leaders to be prepared for how they plan to hang on to top talent when they get another offer.

First of all, it is a positive sign if the employee informs you of the offer. This is a sign they haven’t decided to accept the offer and you can still retain them if you act quickly. Start by having an honest conversation with the employee about the offer—how tempted they are to take it and why, and what your company could do to entice them to stay.

Learning why they’re considering the offer is critical because it tells you where to start the negotiations. If salary is the biggest factor, then adjusting their compensation to be the same as (or higher than) the competitor’s offer could be enough to keep them on the team. In other cases, it may be more effective to discuss more flexible schedules, a remote or hybrid position, additional benefits like stock options, or career advancement through a promotion, expanded responsibilities, professional development, or leadership opportunities.

In some cases, you may not be able to compete with the competitor’s offer, and some talent loss is inevitable in a business. However, if you address the specific reasons the employee is considering the offer, you have the best chance of keeping them on your team.

Joan Denizot – Zize Bikes

In an urgent retention scenario, my first step would be an open conversation to understand their motivations—whether it’s compensation, growth, or work-life balance.

I’d present a compelling counteroffer that aligns with their aspirations, whether through salary adjustments, performance-based bonuses, or equity options. Additionally, I’d emphasize long-term career growth by mapping out leadership or specialized roles tailored to their strengths.

Beyond financial incentives, I’d reinforce workplace culture, flexibility, and mission-driven engagement, ensuring they feel valued beyond numbers. If compensation is a key factor, I’d explore creative perks like additional paid time off, remote work flexibility, or personalized development opportunities.

Ultimately, people stay where they feel appreciated and have a clear vision of their future. Retention is about genuine investment in their success.

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.

Loyalty vs. Performance: A Difficult Promotion Decision

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!

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.

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.

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.

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.

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

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.

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.

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.

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.

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.

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.

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