'It can cause real problems for the stability and future of the organization,' says academic offering insights into reactive, proactive responses
When Apple recently lost Abidur Chowdhury – a top industrial designer credited with a key role in the iPhone Air’s development – the tech world took notice.
His departure from a high-profile highlights a challenge that resonates far beyond Silicon Valley: What happens when an organization’s star talent walks out the door?
As Karl Moore, associate professor of strategy and organization at McGill University, warns, Canadian organizations face similar risks when they become too dependent on a handful of high performers. The loss of a star can create a vacuum, impacting not just sales or client relationships, but also the morale of those who may feel overshadowed or undervalued.
“The danger is obviously if they leave, that your revenue may fall off a cliff,” Moore says. “It can cause real problems for the stability and the future of the organization … but there's ways of ameliorating those issues.”
The risks are not limited to the immediate loss of business. Over-reliance on a single individual can also foster resentment or disengagement among other employees, who may feel their contributions are overlooked.
After they leave: succession and continuity
When a star employee does leave, HR must respond quickly, says Rick Hackett, professor of human resources at McMaster University. The way an organization handles the departure of a high-profile employee can set the tone for the entire workforce – and that tone should be professional, first and foremost.
It should also provide clarity to remaining employees.
“There should be communication about the implications of that person leaving, by way of immediate changes that brings to the unit or to the organization,” he says.
“Outline interim leadership or workflow continuity, assure the employees that continuity is in place despite this person leaving, and explain how that continuity will be established … express confidence in the team and the organization moving forward, that it's not going to be cataclysmic that the person has left.”
He also advises having someone “shadow” star employees as a succession plan, "so that if an unanticipated departure of that person happens, for whatever reason, voluntary or otherwise, that the whole Lego structure is not going to come crumbling down.”
Recognition and psychological safety
Hackett points out that retention is about more than pay and perks; the organizational environment – its culture, values, and sense of safety – plays a critical role in whether top performers stay or go.
“There could be something not quite right with the culture or the incentive system or the politics within the existing company, which push people out,” says Hackett.
“Or it could be a pull factor, where the branding of the other organization, the competitive firm, is higher, the incentives are greater, word’s gone around that it's a better culture to work in.”
Hackett recommends a simple solution based around improving abilities, increasing motivation and opportunities.
“Your high talent is interested in ongoing growth to expand their abilities over time,” Hackett explains.
“They're looking for career pathing, they're looking for stretch assignments, they're looking for support in their work environment that will build their skill base, the connections that are required internally and externally to do that. They're looking for coaching and high value work.”
Psychological safety is especially important for star employees, he adds, as they may be under greater scrutiny or pressure to perform. If they feel unable to speak up or challenge the status quo, they may disengage or seek opportunities elsewhere.
‘Reverse mentoring’ and succession planning
One of the most effective ways to reduce risk is reverse mentoring, Moore says. By promoting reverse mentoring programs, HR can not only ensure that the organization has a healthy pipeline of future talent, but can also increase retention of star employees by involving them in the process.
Reverse mentoring programs also serve a cross training purpose: they help junior staff develop their skills and networks, while also reinforcing the value of senior employees as leaders and role models by helping them stay attuned to new technologies, market trends, and cultural shifts: “Make sure that they understand they're valued and appreciated.”
Moore adds that staying relevant at all levels - even for stars - is especially crucial now when organizational success can depend on the ability to pivot.
Equity and retention
In today’s competitive labour market, high performers are frequently approached by recruiters or rival firms offering better pay, more recognition, or new challenges. Moore notes that star employees can be tempted by these offers when they feel undervalued.
For entrepreneurial talent, equity can be a major draw, providing both financial upside and a sense of ownership.
“At a certain point equity is the thing you want,” he explains. “You want to be well paid, but you want to have equity, because equity is where you become worth 100 million, or a billionaire.”
Organizations that cannot offer the same equity as large established firms need to focus on other forms of recognition and reward; this might include competitive compensation, public acknowledgment of achievements, or opportunities for professional growth.
