Every organization shares this common problem: developing talented individuals for bigger responsibilities while at the same time guarding against the very real possibility that these efforts will be wasted because they are lured away by a better opportunity.  Fortune magazine (Nov. 10, 2008) offers 3 perspectives:

Paul Russell, Director, Leadership and Development, Google:  Ask people within the organization to name people they respect, and then challenge these folks with training tasks.  It all starts by hiring great people.  You can't have development if you don;t start out with the right person from teh start.  help people map out their goals; ask them to apply their aspirations to the tasks they do every day.

Hans-Paul Burkner, President and CEO, Boston Consulting Group: Review people after each assignment and give them continuous feedback from multiple people they were involved with.  Looking inside an organization is the first priority; you must be patient with your employees development.  It can sometimes take 3 years for someone to show their potential.

Noel M. Tichy, Management Professor, University of Michigan:  Look at the markets you want to enter and then set up a pipeline of people that can fill related roles.  Don't outsource this task--the CEO must be engaged in this process.  When companies are forced to go outside it is because they have broken their leadership pipeline.  Tell employees what the reasons are that your company is where their future is at.  Be honest.  People inherently want to grow and be challenged.