Policies Aren’t Enough to Retain Top Talent. You Need Systems.SKIP TO CONTENTHarvard Business Review LogoHarvard Business Review LogoEmployee retention|Policies Aren’t Enough to Retain Top Talent. You Need Systems.SubscribeSign InLatestMagazineTopicsPodcastsStoreReading ListsData & VisualsCase SelectionsHBR ExecutiveSearch hbr.orgSubscribeLatestPodcastsThe MagazineStoreWebinarsNewslettersAll TopicsReading ListsData & VisualsCase SelectionsHBR ExecutiveMy LibraryAccount SettingsSign InExplore HBRLatestThe MagazinePodcastsStoreWebinarsNewslettersPopular TopicsManaging YourselfLeadershipStrategyManaging TeamsGenderInnovationWork-life BalanceAll TopicsFor SubscribersReading ListsData & VisualsCase SelectionsHBR ExecutiveSubscribeMy AccountMy LibraryTopic FeedsOrdersAccount SettingsEmail PreferencesSign InHarvard Business Review LogoEmployee retentionPolicies Aren’t Enough to Retain Top Talent. You Need Systems. by Joseph Fuller, Matt Sigelman, Kenny Tan and Elizabeth Tan LevyJanuary 20, 2026Rainer Puster/Getty ImagesPostPostShareSaveBuy CopiesPrintSummary.   Leer en españolLer em portuguêsPostPostShareSaveBuy CopiesPrintWhat separates companies where talent stays from those where it doesn’t? It’s not their industry, size, or budget. It’s whether their talent practices work as a system.Joseph Fuller is a professor of management practice and a faculty cochair of the Project on Managing the Future of Work at Harvard Business School.Matt Sigelman is the president of the Burning Glass Institute, which advances data-driven research and practice on the future of work and learning. He is also a senior advisor at the Project on Workforce at Harvard.Kenny Tan is Deputy Secretary, Workforce at the Singapore Ministry of ManpowerElizabeth Tan Levy is the managing director of the Scaled Impact Lab at the Burning Glass Institute.PostPostShareSaveBuy CopiesPrintRead more on Employee retention or related topics Talent management, High potential employees, Human resource management, Developing employees, Onboarding, Hiring and recruitment, Employee engagement, Compensation and benefits, Management philosophy, Employee performance management and Motivating peoplePartner CenterStart my subscription!Explore HBRThe LatestAll TopicsMagazine ArchiveReading ListsCase SelectionsHBR ExecutivePodcastsWebinarsData & VisualsMy LibraryNewslettersHBR PressHBR StoreArticle ReprintsBooksCasesCollectionsMagazine IssuesHBR Guide SeriesHBR 20-Minute ManagersHBR Emotional Intelligence SeriesHBR Must ReadsToolsAbout HBRContact UsAdvertise with UsInformation for Booksellers/RetailersMastheadGlobal EditionsMedia InquiriesGuidelines for AuthorsHBR Analytic ServicesCopyright PermissionsAccessibilityDigital AccessibilityManage My AccountMy LibraryTopic FeedsOrdersAccount SettingsEmail PreferencesHelp CenterContact Customer ServiceExplore HBRThe LatestAll TopicsMagazine ArchiveReading ListsCase SelectionsHBR ExecutivePodcastsWebinarsData & VisualsMy LibraryNewslettersHBR PressHBR StoreArticle ReprintsBooksCasesCollectionsMagazine IssuesHBR Guide SeriesHBR 20-Minute ManagersHBR Emotional Intelligence SeriesHBR Must ReadsToolsAbout HBRContact UsAdvertise with UsInformation for Booksellers/RetailersMastheadGlobal EditionsMedia InquiriesGuidelines for AuthorsHBR Analytic ServicesCopyright PermissionsAccessibilityDigital AccessibilityManage My AccountMy LibraryTopic FeedsOrdersAccount SettingsEmail PreferencesHelp CenterContact Customer ServiceFollow HBRFacebookX Corp.LinkedInInstagramYour NewsreaderHarvard Business Review LogoAbout UsCareersPrivacy PolicyCookie PolicyCopyright InformationTrademark PolicyTerms of UseHarvard Business Publishing:Higher EducationCorporate LearningHarvard Business ReviewHarvard Business SchoolCopyright ©2026 Harvard Business School Publishing. All rights reserved. Harvard Business Publishing is an affiliate of Harvard Business School.

Joseph Fuller, Matt Sigelman, Kenny Tan, and Elizabeth Tan Levy’s article, “Policies Aren’t Enough to Retain Top Talent. You Need Systems,” presents a critical examination of contemporary talent retention strategies, arguing that simply establishing attractive policies fails to address the core issues driving employee departures. The authors, through their work at the Burning Glass Institute and the Project on Managing the Future of Work at Harvard Business School, advocate for a shift in thinking, emphasizing the necessity of designing and implementing robust talent systems to truly retain high-performing employees. The core of their argument rests on the observation that despite significant investments in benefits, perks, and formalized policies related to employee well-being and career development, companies continue to experience high levels of turnover, particularly among their most valuable assets.

The article highlights a fundamental disconnect between the intentions behind traditional talent management practices and their actual effectiveness. Companies frequently deploy policies – such as flexible work arrangements, professional development budgets, and recognition programs – without establishing the underlying systems needed to ensure these initiatives translate into genuine employee engagement and commitment. Fuller, Sigelman, Tan and Tan Levy argue this approach treats employee retention as a purely reactive measure, responding to attrition rather than proactively shaping environments where individuals choose to remain.

A key component of the authors’ argument centers around data-driven insights generated by the Burning Glass Institute. They illustrate the concept of “talent systems” as intricate networks of processes, data, and human interactions. These systems encompass a wide range of elements, including hiring practices, performance management, learning and development opportunities, career pathing, and even the design of the physical and virtual work environments. Critically, they emphasize that success depends on the ability to systematically track and analyze data related to employee engagement, performance, and satisfaction throughout the employee lifecycle. This data informs the design and continuous optimization of system interventions.

The article details that a properly functioning talent system doesn’t merely offer attractive policies; it connects these policies to tangible outcomes for employees. For example, a professional development budget is more effective when accompanied by a clear process for identifying individual skill gaps, designing targeted training programs, and measuring the impact of those programs on employee performance and advancement opportunities. Similarly, flexible work arrangements must be integrated with robust performance management systems that focus on results rather than simply monitoring hours worked.

Furthermore, the authors stress that companies need to move beyond siloed approaches within human resources and incorporate insights from other departments, such as marketing, sales, and operations. A holistic talent system recognizes that employee retention isn't just the responsibility of HR; it’s a shared priority across the entire organization. The analysis of data provides the critical feedback loop needed to continually refine and improve systems. Ultimately, Fuller, Sigelman, Tan and Tan Levy contend that truly effective talent retention relies on the design and implementation of interconnected systems, fueled by data and a deep understanding of what motivates and engages high-performing employees, moving beyond simple policy deployment.