Introduction Most of us now realize that people create the real value in every company—and the better your people are, the better your business performs. So why have CEOs repeatedly declared that their greatest challenge is human capital?1Some might say it’s because we’re in a heated war for talent. Quality candidates are scarce, and companies must mount an aggressive offense if they hope to bring those star employees on board. But in reality, CEOs know there’s more to the game than playing offense. Maintaining a strong, productive workforce requires us to play defense, too, by working to retain employees once they’re hired, and by truly engaging them and optimizing their value.

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