When considering strategies to retain a VP of Engineering or Plant Director, it is essential to address both retention and motivation factors.
In a job market where senior technical executive turnover is hitting record highs in 2026—with more than 50% of CxOs likely to leave their positions within the next two years according to recent studies such as Gartner’s—losing a key leader is no longer just an anecdote. It’s a major financial shock (recruitment costs of > $200-300k+ for a VP or CTO), a strategic roadblock, and often a warning signal for the teams. As a result, the risks of failing to retain a VP of Engineering or a Plant Director have become critical for the company.
At Larouche Raymond, we have been supporting companies in engineering, construction, manufacturing, and technology for years in attracting and retaining these rare profiles. Indeed, we see the same patterns repeating themselves. Here are the five most costly mistakes that push a VP of Engineering, a Plant Director, or a CTO to walk out the door in less than a year… and the concrete solutions to counter them.
1. A compensation package that is poorly calibrated to the current North American market
Classic mistake: offering a salary and bonuses aligned with 2023-2024 levels, without factoring in the inflation of expectations in 2026 (especially with U.S. competition and the rise of remote/hybrid opportunities). As a result, a VP of Engineering or CTO now compares their offer not only to roles in Quebec or Ontario, but also to positions in the United States or fully remote roles. How to avoid it? In this regard, it is essential to retain a VP of Engineering or a Plant Director with competitive and up-to-date market-adapted offers.
- Conduct a market analysis updated every 6 months (not just salary, but total: equity, long-term bonuses, relocation, flexibility).
- Incorporate differentiating elements: 4-5 additional weeks of vacation, an executive training budget (e.g., MIT Sloan or INSEAD programs), or real equity participation for transformational roles.
2. The absence of a clear and inspiring strategic vision
Many senior executives leave because they no longer see the “why”: no 3-5 year roadmap, priorities shifting every quarter, or a vague strategy in the face of AI, decarbonization, or Industry 5.0. How to avoid it? Additionally, clarifying the strategic vision helps retain a Plant Director or VP of Engineering by motivating and mobilizing these technical leaders.
- During recruitment and onboarding, present a clear “manifesto”: where the company wants to be in 36 months, what the 3 priority levers are, and what exact role the leader will play in this transformation.
- Revisit it quarterly in one-on-one meetings with the Board of Directors or the CEO.
3. Micromanagement disguised as “close follow-up”
A Plant Director or VP of Engineering arrives with 15-20 years of experience… and ends up having to justify every operational decision. The result is rapid frustration and a departure to a company that “trusts” them. How to avoid it? In particular, avoiding micromanagement is essential to retain an experienced Plant Director or VP of Engineering.
- Define from the outset the areas of total freedom versus those that require approval.
- Shift from a control mode to a results mode: measure based on strategic KPIs (e.g., OEE +15%, GHG reduction of 20%, time-to-market divided by 2), not on the means.
4. A failed or non-existent onboarding
Grand entrance with fanfare, then… radio silence for 3-6 months. There are no structured meetings with peers, no quick access to key data, and no coaching to integrate into the culture. The leader feels isolated and loses confidence. How to avoid it? Furthermore, a successful onboarding contributes to retaining a VP of Engineering and a Plant Director right from their first months.
- Implement a structured 90-day onboarding: week 1 = strategy & culture immersion; month 1 = stakeholder mapping; months 2-3 = first quick wins with executive mentorship.
- Name a C-level “sponsor” for the first 6 months.
5. Lack of recognition and perceived equity
Even with a good salary, the feeling of being undervalued (comparison with new hires who are better paid, lack of positive feedback, or overload without recognition) pushes people to look elsewhere. How to avoid it? In this regard, fair recognition practices are essential to retain a Plant Director or VP of Engineering over the long term.
- Implement biannual performance reviews with 360° feedback and tangible recognition (spot bonuses, visibility to the Board, opportunities for external speaking engagements).
- Be transparent about salary grids and promotions.
In summary: a good recruitment process doesn’t stop at the signing of the contract.
True retention starts on day 1 and relies on strategic alignment, trust, recognition, and a competitive package in 2026. In fact, companies that master these levers retain their leaders 2 to 3 times longer… and attract the best passive talent. Ultimately, a comprehensive strategy to retain VP of Engineering and Plant Director optimizes the organization’s performance and long-term sustainability.
At Larouche Raymond, we don’t just find the right profile: we support the onboarding process and provide advice on retention to maximize the ROI of every senior hire.
Are you experiencing one of these scenarios or anticipating a departure? Contact us for a free diagnostic of your senior leadership strategy.