What kind of companies tend to keep top talent?  Those that pay a lot or are leaders in their field?  What about those who have an engaging culture?  Let’s take a moment to look at both of those possible answers and see what part culture plays in attracting, developing and retaining top talent.

I found it interesting that Goldman Sachs wanted to quickly return some of the government money it took last fall, partly so they would not be limited by government meddling in their compensation/bonus policies.  CEO Lloyd Blankfein knows that Goldman’s business model is based on generous financial rewards to top performers.  Other investment banks have said compensation caps will cause a flight of top talent.  Maybe multi-million dollar compensation only buys temporary rather than enduring loyalty.   They don’t call it a “money culture” without reason, and when the money isn’t flowing, the talent may not stick around.

Contrast that with the approach taken by Zappos.  The online retailer has quietly grown to $1billion in sales and in the process has built a culture that looks a lot like the exuberant workplaces of the dotcom era.  Zappos CEO Tony Hsieh has focused on building a culture devoted to customer service and employee engagement.  Zappos gives a lot of attention to recruitment and training-hallmarks of firms that are committed to truly developing top talent.  Employees have some degree of latitude in making sure customers are satisfied, and Zappos has a very high number of repeat customers and they are still growing, even in a serious economic downturn. 

Developing a culture and keeping top talent doesn’t happen automatically and it’s not something that is simply fixed with money.  Oh, if only it were that easy.  But it is doable and companies like Zappos are showing it may be one of the few paths to competitive and strategic distinction.