We have key employees who are really important to the business. If one of them were to leave, or if something happened to them, we’d feel it. How do we protect the business from something happening to key employees?
Thoughts of the Day: Key employees have earned the right to that designation over time. Engaging them is essential to the well-being of the company. Protecting the business from unexpected events is part of any owner’s job. Know what your people want, where they’re going, and how your company fits into their overall plans. Build backup solutions as part of a well-rounded contingency plan B.
Key employees retention and retirement
Key employees are called that for a variety of reasons. Some have unique knowledge of the business. Others have special skills that are hard to replace. Some provide a level of support or planning that has taken a long time to figure out how to do it. Some could be very valuable to competitors.
When thinking about how to protect the company from the loss of a key employee, the first step is to ensure you know who is considered to be key. There is a host of reasons why people are considered essential. The list usually includes more than top executives. Think about who in your company might be seriously missed or difficult to replace if they left or couldn’t make it in for work.
Take time to reflect on each key individual. Is he fully engaged with the work he’s doing? Is she aware that the company values her contributions? Are plans in sync – yours for where you want to take the company, theirs for what they want to achieve. Do you even know what each key employee wants personally and professionally?
Stakeholders in the business
Many business owners are in the position of command and control. Don’t make the mistake of assuming they should map out a future for each key employee. It’s a two-way street, starting with a dialog about the future. Have an open and frank conversation with each key person/ Where do they want to be in 3-5 years? Are they satisfied? Why? What concerns do they have?
Listen carefully, without judgment. Try not to take control. Be open to the possibility that the person you’re talking to may want to go somewhere else for work sometime in the future.
Tune in to what motivates each individual, and what needs each has. Think about how you can use the resources of your company to help each key individual achieve what they want, as they help to get your company where you want it to go. Be willing to think outside the box as to how you can help a key employee, but make sure it’s a fair trade.
Realize their value and willingness to contribute
Do they want to get additional education? Offer that, with the agreement that they’ll stick around for a period of time post-graduation, or reimburse part to the tuition if they leave sooner. Planning to have a family? Consider flexible work schedules. Many key employees work long hours and have concerns that they may not be able to spend quality time with their families. Get back up so they can.
Consider ways to bond people to the company. Ask every key employee about why the company is important to them. It may be how your company treats its employees. Perhaps the type of work or the clients served. It may be about the community they share. Look for common themes you can build on to create a culture to bond people together.
It may be possible to meet employees’ financial growth needs through profit sharing. Shares of stock may be valuable. Keep ownership internally focused. Have a stock ownership agreement. Return shares to the company when the employee leaves as a requirement.
Make cross-training a requirement for every key employee. It may take more than one employee to perform the functions of one key employee. Whatever it takes, make sure that someone can back up every key employee so that they can take a vacation, get sick, move on to learn something else, or even leave the company, and the company continues to function well.
Looking for a good book? Retaining Your Best Employees, by Patricia Pulliam Phillips and Jack J. Phillips.
