4 out of 10 Businesses Can’t Manage the Loss of a Key Employee…are you at risk?
No matter what type of business you operate… a solid staff is the foundation of success. Valuable employees build client relationships, increase productivity and boost profits. Often times, you have employees, who are doing so well in their jobs; losing them is devastating.
So, what exactly happens, when you lose a key employee…do they take your customers and profits with them?
Are you at risk?
If you’re like 4 out of 10 businesses, you’re not just at risk. You’re at serious risk.
Tough Economy…Is this Really a Concern?
We admit; the job market’s still tough. But this is misleading. Finding the right employee for the right position is like finding a needle in a haystack. Large numbers of job seekers are flooding the market, making the right candidate even harder to find.
The result?
Recruiters are looking harder for talented employees. And they aren’t just recruiting the unemployed; they’re actively approaching employed talent. So, you have to be diligent about retention.
The Ripple Effect…
Let’s say you lose a key employee. Does it create confusion for your clients? Probably. Could you risk losing clients? Absolutely. But, here’s the thing. There’s other risks to consider, such as the employee’s unique relationship with a supplier. The ripple affect from the loss of this employee, might create chaos in your company.
Protecting your Company
There’s good news, though. Safeguarding your company from key employee loss is easier with a few changes. For example:
• Keep compensation fair and competitive, even though you could discount salaries in a tough market. This entices your employees to stay put.
• Have a defined plan to measure employee performance and reward your brightest and most talented employees.
• Develop an interviewing and training program for hiring managers, so they know how to recruit top performers…and tricks for retaining them!
• Create an employee continuity plan, with defined succession elements; offering bench strength for critical positions.
• Provide a professional growth plan for employees; offering a clear line of sight for their future with your company.
Also, consider putting a farming system in place (think minor league baseball). This system helps retain and develop your best and brightest employees; preventing them from walking out the door.
Need help protecting your company? Fortune 1000 companies and their advisors turn to CERS to implement these strategies and get the help needed if the unthinkable happens.
Other Tips
Also, address your company’s dependence on one person. This means training…and lots of it. Cross-train other employees – and ensure your company’s key relationships with clients AND supplies, don’t reside solely with one person.
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