The demand for top talent is at an all-time high and there is tremendous pressure to attract and retain the best talent to keep your businesses competitive and highly desirable with clients and customers.

Top talent has many options when it comes to choosing the right business in terms of compensation, location, benefits, culture and work environment. Losing a talented team member can be expensive and disruptive for business. For smaller business owners with limited financial resources, maintaining these resources can be especially challenging. It is essential that owners understand the best practices they can use to avoid losing valuable team members to other businesses.

Below, I'll share five key strategies for developing and retaining talent.

Related: 14 Strategies for Retaining Top Talent and Building Championship Teams

1. Personalized learning paths

According to a report by McKinsey, over 40% of employees leave the current employer because there were few opportunities for career development and advancement. Prioritizing your team's development is a great way to benefit both the organization and the employee. While most organizations have some form of training or development for employees, they often lack customization that matches employees' specific career goals.

The reality is that everyone needs something different when it comes to career development. By assessing each team member's career goals, your business can create a customized mix of online courses, mentoring and on-the-job training that helps them get where they want to go. This ensures that employees feel valued and that the company is invested in them professional growth. This not only results in happier and more productive employees, but also supports long-term retention.

2. Flexibility in duty

It is extremely difficult to keep employees engaged. In today's business environment, stagnation is a recipe for burning. Companies can offer a rotation program that allows employees to gain exposure and experience in different departments over a period of time. This not only keeps them challenged and learning new skills, but gives them a broader perspective of business operations and goals. This also supports a team that is more versatile and valuable, reducing the risk of skills gaps and improving cross-training.

If your team is small, consider opening this up to other related, non-competing businesses, perhaps from an association or group your business is a member of.

3. Mentoring programs

Mentoring programs are essential for providing guidance and support to new hires and new employees looking to advance their careers. By pairing employees with experienced mentors, your company can facilitate knowledge transfer and improve overall team strength. Mentoring programs are also a great way for employees to bond with the leadership team, which can foster a culture of belonging and loyalty.

And remember that mentoring is a two-way learning program. Your experienced mentors can undoubtedly learn a lot from your new hires and new employees.

Related: 6 Reasons Why Business Leaders Should Implement Official Mentor Programs

4. Foster a culture of creativity

As an owner, your objective is to attract and retain talent that is highly creative. It is important to make sure you are not suffocating yourself creative culture constantly bombarding your team with uncreative tasks and activities. This will eventually lead them to seek employment in an organization that allows them to keep their creative juices flowing.

Instead, give your employees the autonomy to spend part of their week focusing on innovative ideas or learning opportunities that may be outside of their regular duties. This is a practice that has been successfully implemented in a number of large technology companies such as Google's “20% Time” Policy. Having this dedicated time provides a refreshing break from routine tasks, while also providing the opportunity to discover new innovative products or solutions for your company.

5. Prioritize work-life balance and wellness

When employees begin to feel stressed and overwhelmed, it often results in them looking for work elsewhere in hopes of finding a better work-life balance. As a business owner, prioritizing the health and well-being of your team can keep them sharp and less likely to experience burnout.

A great start is on offer flexible work arrangementssuch as flexible hours or telecommuting. This not only allows you to tap into a wider pool of talent, but also helps improve the job satisfaction of your existing team. You can also offer additional benefits like mental health days, gym memberships, and other employee wellness resources.

Talent retention requires continuous improvement

Retaining your top talent should begin and end with employee feedback. Business owners should begin by assessing the current needs of their organization through employee surveys, focus groups, and behavioral interviews. This can give you a sense of what types of initiatives would be most impactful on your team. After hearing from the team, you can set clear goals and define success metrics for each program. Most importantly, you need to take action on the feedback you receive. Inaction sends a message to the team that you don't care about them.

Not all programs will be successful. Take the time to regularly review the effectiveness of each initiative through feedback and performance metrics. Feel free to stop any programs that aren't resonating with the team. For those who work, celebrating successes will reinforce their value to employees and encourage continued participation. Through continuous improvement, you will discover the best practices for moving your culture and environment to a country people feel excited to show up and give their best every day.

Related: 5 essential steps to foster a culture of continuous improvement