SA Journal of Human Resource Management

ISSN: (Online) 2071-078X, (Print) 1683-7584

Page 1 of 9 Original Research

Retention of high-potential employees in a

development finance company

Authors: Orientation: The loss of high-potential employees was a concern to leaders at a South African
Lishani Letchmiah1
development finance company. The research question that guided the study was: How can
Adèle Thomas1
high-potential employees be retained in the company?
Affiliations:
1
Department of Industrial
Research purpose: The objective of the study was to identify factors that positively impact the
Psychology and People retention of high-potential employees in a development finance company.
Management, University of
Johannesburg, South Africa Motivation for the study: The organisation that comprised the unit of study had prioritised
employee development to retain high-potential employees, thereby aiming to build a strong
Corresponding author: talent pipeline and a sustainable knowledge base. A prevalent concern was that there were no
Adele Thomas,
formal retention programmes for high-potential employees. Accordingly, organisational
adelet@uj.ac.za
leaders could benefit from understanding those retention factors that may serve to retain such
Dates: employees.
Received: 04 Mar. 2017
Accepted: 01 Aug. 2017 Research design, approach and method: A qualitative methodology promoted a deeper
Published: 28 Sept. 2017 understanding of a social problem through a case study. Eleven purposefully chosen high-
potential employees provided insights into factors they considered to be important in their
How to cite this article:
Letchmiah, L., & Thomas, A. retention. A content analysis of the data resulted in clusters of themes that addressed the
(2017). Retention of research objective.
high-potential employees in a
development finance Main findings: The following factors appeared to influence the retention of high-potential
company. SA Journal of employees: leadership and organisational culture, organisational purpose, developmental
Human Resource opportunities, meaningful work and collegiality.
Management/SA Tydskrif vir
Menslikehulpbronbestuur, Practical and managerial implications: Leaders in the company should consider factors that
15(0), a924. https://doi. could influence the retention of high-potential employees. Such factors should be built into
org/10.4102/sajhrm.
v15i0.924 formal retention strategies based on the intrinsic needs of employees; the strengths that the
organisational culture provides could be leveraged in this regard.
Copyright:
© 2017. The Authors. Contribution: The practical value of the study was the highlighting of the factors that can be
Licensee: AOSIS. This work leveraged to retain high-potential employees in a development finance company.
is licensed under the
Creative Commons
Attribution License.
Introduction
The inability to retain high-potential employees poses a concern to many organisations (Castellano,
2013), which are at risk of losing business knowledge when an employee leaves (Ortlieb & Sieben,
2012). In this process, leadership strength is damaged (Hausknecht, Rodda & Howard, 2009) and
the organisation has to incur unnecessary costs by constantly replacing staff with those of the
same calibre (Fritz, O’Neil, Popp, Williams & Arnett, 2012). Retention is ‘the ability to hold onto
those employees you want to keep, for longer than your competitors’ (Johnson, 2000, p. 34).

The present case study focused on understanding retention factors for high-potential employees
at a niche South African development finance institution with a complex business model, different
from that of traditional asset-backed financiers. Such an institution is one that provides access to
financial and support services to an underserved market with the aim of contributing to the
sustainable growth of the economy (Association of Development Financing Institutions in Asia
and the Pacific, 2013). A development finance institution is ‘an alternative financial institution
which includes microfinance institutions, a community development financial institution and
Read online: revolving loan funds’ (Levere, Schweke & Woo, 2006, p. 2). These loans carry a higher risk in
Scan this QR comparison to those offered by traditional lending institutions in developing countries.
code with your
smart phone or
mobile device The environment in which the company operates is competitive, tightly regulated and high risk.
to read online.
Because of its entrepreneurial nature, organisational structure and the industry in which it

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 Page 2 of 9 Original Research

operates, retention of high-potential employees has become a committed should be considered strategic assets in an
crucial objective in the last 3 years and this objective has been organisation as they possess ‘the set of difficult-to-trade-
translated into a key focus area for the human capital team. and-imitate, scarce, appropriable and specialized resources
The company defines a high-potential employee as someone and capabilities that bestow a firm’s competitive advantage’
who is aligned to the organisation, who fulfils a critical role (Amit & Schoemaker, 1993, p. 36).
or has scarce skills, who fits into the organisational culture,
who has a positive outlook and who is resilient. Factors that impact retention of high-potential employees
It is important that employers endeavour to retain high-
Purpose potential employees and replace the low performers with new
employees with diverse skills and strong ability (Holtbrugge,
Ingham (2006) suggests that retention of good employees
Friedman & Puck, 2010). Turnover can be considered positive if
is important for organisational success. There is scope for
talented employees are retained while lower performers leave
further research to understand the complexities of retention
the organisation (Hausknecht et al., 2009).
strategies and how they may influence retention of high-
potential employees at a South African development finance
The term ‘talent management’ relates to:
company, with some cautious extrapolation, perhaps, to the
broader industry. In light of this motivation, the research the implementation of integrated strategies or systems designed
problem that the present study sought to address was to increase workplace productivity by developing improved
processes for attracting, developing, retaining, and utilising
to understand factors that may aid the retention of high-
people with the required skills and aptitude to meet current and
potential employees within the company. The research
future business needs. (Lockwood, 2006, p. 2)
question, thus, was: what factors retain high-potential
employees within a development finance company?
Talent management implies that companies are purposeful in
the methods used to engage with new employees who are
Literature review considered to have high potential. These strategies include
The importance of retaining high-potential employees selection techniques, the provision of developmental
Employee retention has become a global quest because opportunities, promotion and mobility in the organisation
employees contribute to organisational success (Ortlieb & (Ingham, 2006). Talent management also includes the manner
Sieben, 2012). For an organisation to remain competitive, in which performance is driven (Schiemann, 2013).
it must employ the most talented people within the
market (Castellano, 2013). This is particularly relevant to Blanket retention policies are often unsuccessful and
the financial sector (Mohlala, Goldman & Goosen, 2012). disadvantageous to an organisation if they appeal to
However, top-performing employees are sometimes employees at all levels and are not segmented (Vaiman,
overlooked as organisational assets. As a result, they may Scullion & Collings, 2012). It is crucial that organisational
become dissatisfied with and disengaged from their current leaders or human resource practitioners understand which
employers and begin to look for new opportunities where factors help to retain employees specific to their own
they feel more highly valued (Hughes & Rog, 2008). Trying to organisations. Retention schemes that are successful in one
replace talent and train new employees to function as organisation may not necessarily achieve retention at another
productively as their predecessors is a growing challenge for (Sinha, 2012).
financial institutions (Vasishtha, 2009).
Some of the key factors that have been shown to impact the
Characteristics of high-potential employees retention of high-potential employees include organisational
A talented individual is one who drives exceptional culture and values, self-actualisation, leadership, communication,
business performance through competence, commitment work–life balance and reward and recognition (Trevisan,
and contribution (Hayashi & Dolan, 2013). McKinsey and Veloso, Da Silva, Dutra & Fischer, 2014).
Company (2001) offer a similar description, explaining that
a high-potential employee is someone who demonstrates The variation in employee retention across organisations
consistent levels of high performance, is capable of lateral may be related to organisational culture (Kerr & Slocum,
or upward movement and has reached the potential to move 2005). Organisational culture is described by Schein (2006,
upward, more commonly into management or supervisory p. 236) as a ‘set of shared, implicit assumptions that a group
positions. To this list, Allen, Bryant and Vardaman (2010) holds and that determines how it perceives, thinks about,
add that the individual must possess robust business and reacts to its various environments’. Similarly, Chatman
knowledge and contribute soundly to the business. High- and Cha (2003) explain culture to be a system of shared
potential employees are more likely to become the future values and norms. Employees become energised when the
leaders of an organisation (Hausknecht et al., 2009) and culture appeals to their higher ideals and values (Liden,
possess several core characteristics including, but not limited Wayne, Lioa & Meuser, 2014).
to, creativity, autonomy, resilience and learning potential
(Kyndt, Dochy, Michielsen & Moeyaert, 2009). Joo and Linked to organisational culture, organisational commitment
Mclean (2006) note that employees who are engaged and is often enhanced by the relationship the employee has with

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 Page 3 of 9 Original Research

the organisation, especially if the employee is aligned to environment that can support this expectation, necessitating
the organisation (Messmer, 2004). Leaders should ideally that both employees and organisations reach an agreement
enhance employees’ personal links to the company, thereby on this issue (Greenhaus & Allen, 2012). Organisational
enabling employees to better understand how their leaders should focus on providing policies that promote a
individual successes contribute to the overall success of the healthy work–life balance to assist in the retention of top
organisation (Sun & Anderson, 2012). If employees are well potential employees (Nadeem, 2009).
socialised into the organisation and identify with the
corporate culture, their commitment is likely to be enhanced The culture of the company determines the organisational
(Kinicki & Fugate, 2012). mindset around opportunities offered internally
(Chatman & Cha, 2003). High-potential employees
Personal values of individuals influence their beliefs, appreciate organisational investment in training and
behaviour and the decisions they make in the workplace skills development that generally lower an employee’s
(Alfes, Shantz, Truss & Soane, 2013). If employees identify need to leave (Allen, 2008). This is particularly relevant
with the values of the organisation and believe them to be for professions where incumbents require constant skills
similar to their own, they are more likely to stay with the updating or continuous professional development (Doh,
organisation (Grojean, Resick, Dickson & Smith, 2004). Smith, Stumpf & Tymon, 2011). Growth opportunities and
long-term career prospects are crucial for high-potential
High-potential senior employees often try to achieve a level employees (Rondeau & Wager, 2001).
of self-actualisation (Gupta & Tayal, 2013). They are on a
constant journey to be the best possible versions of themselves Extrinsic and intrinsic rewards and advancement
(Ramlall, 2004). They need to feel that they are learning, opportunities are central to the retention of high-potential
advancing and remaining competitive in relation to their employees (Caldwell et al., 2012). Employees need to feel
industry peers and see this as leading to opportunities for equitably remunerated and see potential to grow within
promotion and career advancement (Kyndt et al., 2009). If organisations (Mansel, Brough & Cole, 2006). Ryan (2010)
they do not feel this way, the likelihood of them exploring discusses the results of a top talent survey in which partners
new external job opportunities increases (Sageer, Rafat & of various organisations were asked what they considered
Agarwal, 2012). to be the top tools to retain high-potential employees.
All partners stated that compensation would retain
Leadership is fundamental to the retention of high-potential talent. However, the results revealed that compensation
employees and should be reflective of the organisational ranked number four by high-potential employees while
culture (Paul & Berry, 2013). Kaiser and Hogan (2010) argue developmental opportunities ranked number one.
that standing by business ethics and displaying personal
integrity are prerequisites for good transformational If employees perceive that contributions are equal to the
leadership. If leaders are perceived to be lacking integrity, it benefits they receive, they are less likely to leave the
is likely to harm the trust and the relationships required to organisation (Lee, Liu, Rousseau, Hui & Chen, 2011). These
build and sustain effective working relationships with high- benefits may be in the form of remuneration, the feel of the
potential employees (Kaiser & Hogan, 2010). workplace environment and opportunities for promotion
and development. If the culture of the organisation allows
Leaders, through the organisational culture, provide for flexibility regarding working conditions and benefits,
employees with informal direction on how to execute their whether tangible or intangible, this can aid retention
roles to achieve the strategic objectives (Grojean et al., 2004). strategies (Chatman & Cha, 2003).
They also encourage employees to take ownership of their
actions and consequently, high performers are likely to excel
(Chatman & Cha, 2003).
Method
Research approach
Effective communication is linked to leadership (Effelsberg, The study adopted a qualitative approach to assist in an
Solga & Gurt, 2012) and is considered one of the best tools for understanding the experiences of the participants, all of
leaders to increase retention (Masibigiri & Nienaber, 2011). whom had been identified as high-potential employees in the
Open and honest communication can contribute to employee company; it sought to promote the understanding of a social
commitment and thereby promote retention and by reminding problem through rich description (Creswell, 2014).
employees of their value and importance to an organisation,
high commitment can be fostered (Tillott, Walsh & Moxham,
2013). Thus, an inclusive organisational culture that promotes Research design
open and honest communication, and one that places a strong A case study design in a single organisation was used to
emphasis on knowledge equality, is likely to contribute to the explore the way in which participants construct meaning
retention of employees (Pyszka & Pilat, 2011). within their own live contexts (Yin, 2009). In this way, an
attempt was made to learn more about an unknown or
If employees feel that they are unable to attain a work–life inadequately understood subject by means of gathering in-
balance, they may be more predisposed to leave for an depth data (Leedy & Ormrod, 2001).

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 Page 4 of 9 Original Research

Population and sample (Esterberg, 2002), which was the case in the present
The population comprised 15 senior high-potential study. Golafshani (2003, p. 600) indicates that credibility
employees from whom 11 participants were selected through in qualitative studies refers to the ‘ability and effort’ of the
purposive sampling. All participants had to display the researcher. Selecting the most appropriate method of
characteristics of a high-potential employee as determined data collection, as well as the amount of data collected,
by the company: alignment to the organisation, performing was important in establishing such credibility. The units of
a critical role or having scarce skills, fitting into the data acquired through content analysis were not too broad
organisational culture, possessing a positive outlook and with multiple meanings and not too narrow as to risk
resilience. They were employees with diverse skills and fragmentation. In addition, representative quotations from
business knowledge who could be rotated within the the transcribed text were used to illustrate the input provided
company and added value to numerous business areas. by participants (Graneheim & Lundman, 2004).
Because of their skills transferability and scarce skills, these
employees are marketable and thus are ‘key informants’ Transferability is the ability to use the same research method
(Maxwell, 2013, p. 73) or respected or knowledgeable people and approach in another setting and obtain a similar result
in terms of the research subject and ones who are able to (Pidgeon & Henwood, 1997). Transferability was ensured
provide a deeper understanding of the issues under through providing rich descriptions of data (Bowen, 2005),
consideration. thus allowing other researchers to use the current study as a
framework for reflection on the findings (Terre Blanche &
Durrheim, 1999).
Research instrument
Based on the literature, an interview guide was constructed
that included open-ended questions. Care was taken to Ethical considerations
ensure that the questions were fully understood by the The necessary authorisation was obtained from the
participants. The questions were organised and worded company at which the study was conducted. The company’s
in a way to encourage participants to provide accurate, name remained anonymous and no identifying details of
unbiased and complete information in relation to the participants were disclosed. Written consent was obtained
research problem. Probes were used if participants appeared from all participants and the information gathered was kept
unsure of the questions. Examples of questions included confidential in accordance with the guidelines of Leedy and
‘Please describe your level of commitment to the company’, Ormrod (2001). Participants were informed of the nature of
‘Please explain the degree to which accurate information is the study, that participation was voluntary and that they
shared throughout the organisation’, ‘What opportunities could withdraw from the study at any time should they not
are there for you to participate in decision-making regarding feel comfortable.
organisational goals and objectives?’ and ‘If you could
describe the corporate culture of the company in three Findings
words, what would they be?’
The purpose of the study was to understand, from 11 high-
potential employees, what factors could be used to retain
Data collection such employees within the company. The following themes
Access to participants was gained by obtaining consent emerged.
from the organisation and participants were approached
individually through personal emails to set up convenient
meeting times and at venues that ensured confidentiality.
Leadership
Five participants attributed poor leadership as the reason
Data analysis and interpretation why they had left previous organisations. Participants
mentioned that supportive leadership was an overarching
In line with qualitative research methodology, the data were
reason why they stayed with their current employer:
subjected to content analysis where themes, or recurring
‘threads of meaning’ (Baxter, 1991, p. 250) and categories, or For me leadership is the differentiating factor for staying in an
organisation. That’s why I decided to stay here. The CEO is
groups of content-sharing commonalities (Krippendorff,
phenomenal. Since he joined in 2010, I’ve been more engaged
1980) were used to assemble the first-order concepts and
and excited to be at work. (Participant 5, Indian male, 9 years’
to understand the information at a higher logical level service)
(Graneheim & Lundman, 2004). To ensure reliability of the
data, all semi-structured questions were posed in the same Participant 10 cited the open management style in the
way to participants by the first author, and responses were business as being the reason for his retention:
not influenced in any way (Myers, 2010).
No manager is unapproachable in the organisation. My manager
is inclusive and entrenched in the business. He includes our
The soundness of a study is influenced by credibility, team in everything and values our opinion. I appreciate that the
internal validity and transferability (Bowen, 2005). Credibility CEO is someone who wants everyone to be happy and lives the
is determined by establishing whether the information culture he is trying to create in the organisation. (Participant 10,
provided by participants speaks to the findings of the study white male, 5 years’ service)

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Participant 8 echoed this sentiment: complexity of their jobs, they found their work challenging
I have a great manager. I report to a manager who goes beyond and intellectually stimulating, which participants highlighted
his call of duty to build relationships and support his employees as being important for them. Participants 1 and 7 emphasised
both personally and professionally. I’m privileged to work so that meaningful work was a major retention factor for them
closely with the executive team. One of the executives is an at this stage of their careers:
inspiration to women. She holds her own in a male dominated
If I’m not challenged, I’ll leave. I must enjoy what I’m doing and
environment while running the department. She’s approachable,
be able to see the value of my work. (Participant 1, black female,
independent and objective. She acts with high integrity. I really
2 years’ service)
respect her. (Participant 8, black female, 5 years’ service)
The work is always challenging. This is a driving factor for me. I
need to be challenged. The way we do things is constantly
Organisational purpose evolving. There’s always something to improve on or to
The majority of participants had a clear understanding of implement and that excites me. I stay because I can add value
and people ask for my opinion. It’s magic. (Participant 7, white
the company’s mission and organisational purpose. They
male, 4 years’ service)
emphasised that the business is focused on being a true
development financier:
What other organisation allows you to uplift previously Environment
disadvantaged people who did not have access to finance and The physical and cultural environment created by the company
provide them with an opportunity to create their own business? was a prominent theme in almost every interview. Seven
We are giving people access to the formal and mainstream
participants used words such as ‘dynamic’, ‘fun’ and ‘energetic’
economy. (Participant 11, white male, 3 years’ service)
when describing the company’s environment. Many of the
The organisation does what I feel is really important. [It] creates participants referred to the positive environment specifically
value by empowering people to create value for themselves.
of the customer-consulting area and the vehicle warehouse
(Participant 3, black male, 2 years’ service)
business unit, which they felt truly differentiated this company
I truly believe in what we do in this business. Being part of a from any other company. The culture was described as being
development finance organisation that directly impacts millions
reflective of the values and purpose of the company. The
of South Africans every day is why I come to work. The purpose
participants felt the environment fostered collaboration and
and concept of what we do is really cool. (Participant 1, black
female, 2 years’ service)
innovation among employees, departments and customers:
In my previous organisation I struggled. Going to work took
more effort and my energy was depleted at the end of every day.
Developmental opportunities I woke up in the morning thinking, do I really have to go to
All participants expressed their appreciation for being work? Whereas now, on a Monday morning, I wake up and
invited to attend courses. All mentioned that they valued the think, awesome, I’m going to work. (Participant 6, white male, 4
organisation for providing a diverse range of developmental years’ service)
opportunities geared to every level of the organisation:
Participant 5 described the environment as fast paced and
The current leadership initiatives being run internally have
energetic. Participant 3 shared a similar view:
impacted me positively. I’ve learnt a lot and gained valuable
work experience. It’s a fantastic opportunity. The organisation The environment is cool and very unique to this business. If you
has arranged a formal coaching programme for me that has walk into the welcome centre, customer service consultants are
influenced me hugely, both personally and professionally. The friendly and have created a happy and welcoming space. The
fact that the organisation is willing to spend money on area is a representation of how client focused the business is. But,
developing me increases my commitment. (Participant 6, white if I had to show someone our business I would take them to the
male, 4 years’ service) vehicle workshop purely because of its grandeur and pace. It’s
really amazing. (Participant 3, black male, 2 years’ service)
Participant 6 appreciated the recognition and developmental
opportunities he receives within the company. He described Collegiality
the internal and external opportunities as well thought out,
thus ensuring that they were adding value to every employee. The participants all valued and respected the people who
work for the company. They enjoyed coming to work because
Participant 3 added: of the people with whom they interacted. They respected the
teams in the business and those who they called their
I really value the opportunity to learn and not being intellectually
organisational heroes. Most of the heroes mentioned were
bored. (Participant 3, black male, 2 years’ service)
not executives but teams and people in specific roles. Where
possible, team names or job titles were used to show that,
Meaningful work regardless of level, participants felt they were surrounded by
Five participants felt that their jobs added value to both great people in the organisation:
themselves and the company, and they were able to see how They’re able to do a job that’s really unpleasant but have such
their roles contributed towards the company’s success. a good ethic and sense of community. (Participant 6, white male,
Because of the dynamic nature of the business and the 4 years’ service)

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The people are the reason I decided to join this company. I had innovation among employees, departments and customers.
such a great experience and interactions during my interview From the findings one can see that high-potential employees
that I wanted to work here. I wanted to work with the people. prefer to work in environments that are productive, respect
People are so passionate, it’s infectious. (Participant 3, black employees, value diversity and are inclusive and sociable
male, 2 years’ service)
(Ramlall, 2004).
I’m privileged to be a part of the team. (Participant 7, white male,
4 years’ service)
Organisational purpose
Participants made reference to the importance of belonging
Participant 11 referred to the resilient nature of the people
to an organisation that has a motivational purpose to
within the company:
which they are able to relate. Participants mentioned that,
The environment can be tough but the people are passionate,
as they live and work in a developing country, it is
smart and strong. I enjoy interacting with the people at work.
important for them, at this stage of their careers as senior
Our passion towards the business unites us and all of us can
managers or specialists, to see the value in what they do.
really relate to each other. (Participant 11, white male, 3 years’
service) They want to belong to an organisation that is committed
to improving the country and one that focuses on
sustainability. Many of the participants enjoyed the direct
Discussion impact that the organisation has on communities and the
Outline of the findings economy and, for them, this was a powerful motivator,
The study aimed to identify factors that could positively impact increasing their desire to stay at the company. The findings
the retention of high-potential employees in a development confirmed that if high-potential employees identify with
finance company. The question which was answered was: the organisation’s purpose and recognise their role in
What factors positively impact the retention of high-potential fulfilling that purpose, they are likely to remain with the
employees in a development finance company? Five major organisation (Messmer, 2004).
themes emerged in this regard: leadership and organisational
culture, organisational purpose, developmental opportunities, Developmental opportunities
meaningful work and collegiality. The factors are listed in order The need to develop was evident among these high-
of importance as ranked by participants. potential participants. All expressed appreciation for
Ranked!! the developmental opportunities provided, which they
Leadership and organisational culture considered to be abundant in assisting them to grow, achieve
Participants valued the good leadership they experience and advance in their careers. Similarly, Ryan (2010) found
in the company. This was the leading retention factor that it is important for high-potential employees to work for
expressed. Leaders who are accessible and inclusive inspire a company that provides them with such opportunities.
and motivate high-potential employees within organisations Although developmental opportunities did not appear to be
(Trevisan et al., 2014). Many of the participants cited the leading retention factor for the participants, it emerged
leadership as the reason why they chose to leave previous within the top three factors.
organisations and why they remain with their current
employer. Participants appeared to respect their current Many of the participants felt that the organisation offered a
leaders and, in particular, the CEO who was described as a variety of developmental opportunities that were tailored
people’s person who lives the culture he has created. This and customised to their differing needs. They appreciated
finding supports the view that leaders reflect culture (Paul & that the organisation supported continuous learning and
Berry, 2013). Participants trusted leadership as a result of the development. Allen (2008) and Mohlala et al. (2012) also
good business ethics and personal integrity they observed found that high-potential employees appreciate organisational
(Kaiser & Hogan, 2010). Such identification appeared to investment in training and skills development with Allen
influence retention positively. Participants stressed the (2008) noting that providing training and developmental
importance of having leaders who motivate them, allow opportunities generally increases retention of high-potential
them the freedom to make decisions and enable them to
employees.
work independently, but who are available and approachable
if assistance is required. Such a leadership approach allows
employees to take ownership of their actions, with the result
Meaningful work
that they remain engaged and committed to the company A common theme that emerged was the meaningfulness of
(Chatman & Cha, 2003). the work which the company provides. Participants felt that
their jobs add value and that they are able to see the value of
The physical and cultural environment created by the their roles in the company’s success. Their jobs allow them to
company was a prominent theme in almost every interview. be integrally involved in the business and they are able to
Participants agreed that the organisational culture encourages make strategic business decisions. Participants alluded to the
an environment that promotes innovation and collaboration fact that if they were no longer challenged or if they could not
(Grojean et al., 2004). The physical environment was seen as see the value of their work, they would leave the company
a differentiating factor and one that fosters collaboration and (Gupta & Tayal, 2013).

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Participants expressed a similar view to that of Ramlall purpose, encourages continuous development of employees,
(2004), stating that at this stage of their careers they were continues to create a cohesive environment and thus fosters
on a constant journey to become better versions of themselves and attracts the right people.
in the work place. They needed to add value and fulfil
their personal passion. Their roles are meaningful to them
Limitations and recommendations
personally and this motivates them. Participants explained
that the meaningfulness of their work drives their While this study provided insights into the factors that
commitment to the organisation and because of their motivate high-potential employees within the development
involvement in the business they do not wish to seek other finance industry, the information obtained was based on
employment. the participants’ subjective views. This, coupled with the
fact that the study was conducted in one organisation only,
Collegiality means that the findings must be generalised with caution.
Nevertheless, the study provides pointers that can be
Participants explained how they value and respect the people
considered and further explored with a view to retaining
who work for the organisation. They enjoy coming to work
high-potential employees in this industry.
because of the people with whom they work and interact.
They respect the teams in the business and those who they
Understanding the factors that retain high-potential
referred to as their organisational heroes. High-potential
employees is a complex task (Chatman & Cha, 2003). Future
employees need to work in an organisation where they feel
research could seek to understand the balance that is required
respected and, more importantly, where they respect the
between intrinsic and extrinsic rewards in order to retain
people they work with (Ramlall, 2004).
high-potential employees.
Relationships appeared to be a factor that influences the
The participants in this study were all senior high-potential
retention of high-potential employees. Participants enjoyed
employees. Future research could consider retention
being surrounded by people who are hardworking and
strategies for high-potential employees at different levels in
passionate. Employees enjoy working with people who are
the company with a view to retaining and developing such
like-minded and share the same behavioural norms (Kinicki &
employees into senior levels. Research may also indicate
Fugate, 2012). Participants were complimentary about both
differences in retention strategies for different demographic
teams and individuals employed within the company. There
groups including the retention requirements of high-potential
was a clear level of respect and appreciation for different
employees at different stages in their careers.
people, teams and qualities within the business, reflective of
the culture created to which high-potential employees relate.
This finding is aligned to the prior research of Paul and Berry Conclusion
(2013) and Ramlall (2004). There is increasing focus on retaining high-potential
employees (Castellano, 2013) because of the organisational
Practical implications costs associated with losing such employees (Hausknecht
et al., 2009; Ortlieb & Sieben, 2012). Organisational leaders
The findings have implications for the advancement of
and human resource practitioners are also concerned about
knowledge in the field of managing and retaining high-
the costs and the time it takes to replace high performers
potential employees in the organisation.
(Fritz et al., 2012). Retaining high-potential employees
is cost effective and can impact organisational success
The organisation should develop retention strategies based
on the needs of its top potential employees as well as leverage (Ortlieb & Sieben, 2012). Accordingly, factors such as
the strengths that the organisational culture of the company leadership, organisational culture, organisational purpose,
provides. The findings of the study indicate that high- developmental opportunities, meaningful work and
potential employees are intrinsically motivated. Therefore, collegiality should be explored as potential factors that
the outcomes of this study could assist line and human promote retention of high-potential employees.
resource managers in developing retention strategies that will
not only increase the commitment of high-potential employees Acknowledgements
but also assist the organisation in retaining them as well. The authors wish to thank the management of the company
as well as the participants who contributed to this case study.
It is important for the leaders in the company to be aware, The comments of the two anonymous reviewers are also
further, that the needs of high-potential employees may acknowledged.
vary (Chatman & Cha, 2003). Accordingly, efforts should be
made to tailor retention strategies targeted at high-potential
employees to ensure that their individual needs are met. Competing interests
The authors declare that they have no financial or personal
Leaders should focus on developing the organisational relationships that may have inappropriately influenced them
culture so that it is strong and promotes the organisational in writing this article.

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 Page 8 of 9 Original Research

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