Keys to Keeping Good Employees

Question: I only have a few employees and my best one just left. Replacing her will be a real chore. What's more, this has happened before. Do you have any tips or solutions for a small business owner like me on how to hang on to my top performers so this doesn't happen again?

Answer: Finding and keeping good employees is the bane of many a business. From the day they hire their first employee, small business owners begin to learn just how valuable a motivated, productive employee can be to getting a business off the ground, or helping it soar.

And the issue of retaining good people is an especially tricky one for a small business. That's because the number one reason good employees leave is a lack of advancement opportunity - precisely the thing that many small businesses can't offer.

A new survey, developed by Robert Half International and conducted by an independent research firm, examined the reasons that top employees - those considered good performers by their bosses - left the business. Here's what they found:

• Limited advancement opportunity 39%
• Unhappy with management 23%
  
• Lack of recognition 17%
  
• Inadequate salary/benefits 11%
  
• Bored 6%
  
• Lifestyle change (moving, etc.) 2%
  
• Other/don't know 2%

The message for business owners is clear, says Max Messmer, CEO of Robert Half, "Helping top performers reach their goals is essential to keeping them. The best employees are ambitious and may not stay in a job long if it lacks growth potential."

But what if offering a step up isn't an option for a small business? One key is to give employees projects that will at least prepare them for greater responsibilities in the future when things change. These steps can also help you keep valued employees:

1. Tune in to perceptions. Are employees happy with their roles, and with you? Ask their opinions on the work environment and changes that might enhance their loyalty.
   
   
2. Reward extra effort: It doesn't have to be money. If budgets are tight, consider a more flexible schedule or larger workspace.
   
   
3. Give Kudos: Praise should be frequent and personalized, but it does not have to be costly or time consuming. A simple thank you note can be an effective motivator.
   
   
4. Avoid burnout: Your best employee probably carries the biggest load and is least likely to complain if the demands are too heavy. Consider bringing in temp help during crunch times.
   
   
5. Have a little fun: Boring, no-fun jobs and businesses are, well, boring and no fun. Lighten things up once in a while.

BizBest gives a high rating to these resources and solutions for helping small business attract and retain good employees:

• HRtools.com is a wonderful Web site that?s stocked wall-to-wall with helpful (and mostly free) resources and solutions to finding, managing, motivating and retaining good employees. The ?Staffing? section, in particular, has gobs of good info on finding employees, starting them off right and strategies for keeping them around. Visit www.hrtools.com.
  
  
• The Incentive Marketing Association, a trade group, offers good information (free) on inexpensive incentive programs for employees, along with tips on how to set one up and make it work. Look under ?Incentive Program Information? at the home page. Visit www.incentivemarketing.org.
  
  
• While HR.com is more geared to human resource managers at mid-size companies, portions of the Web site are valuable to small business owners as well. HR.com offers a wide range of information, resources and services for managing the people side of your business. Topic areas include pay and benefits, legal issues, staffing and training. Visit www.hr.com; e-mail info@hr.com or call (877) 472-6648.
  
  
• Robin Thompson, of Robin Thompson Training, helps organizations keep good employees and liven up dull meetings. Her Web site has helpful articles, tips and resources. Visit www.robinthompson.com.
  
  
• Motivating Employees for Dummies (John Wiley & Sons) by Max Messmer, has lots of ideas you can put to use in a small business.