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How to retain key employees

On Behalf of | Aug 5, 2022 | Business Formation & Planning

As a successful entrepreneur, you know that a business is only as good as its key employees – and that fact alone can give you nightmares when you realize that a key employee is starting to look at other opportunities.

If you have an employee that matters that much to your success, it’s time to make some tough decisions. Here are a few things you could do:

Offer them a promotion

Is it time to open a second location? Do you want to step back a little and enjoy the fruits of your labors? If your employee can run the place on their own already, why not give them the job title and a salary bump?

Offer them a partnership

If you really can’t do without them, then put them on your level. Your employee may simply be tired of feeling like they’re helping to run the show without adequate rewards. A good employee could be a great future business partner.

Offer them a share of the company

Depending on your business structure, you could offer a key employee profit sharing or equity in the company itself. That gives your employee a real stake in the company’s future – which could be enough to make them stick around.

Offer to make them your successor

Do you see yourself eventually selling and moving on to other goals (or just retiring)? Set up a succession plan and cut a deal that will allow your key employee to eventually buy you out. That could be a win-win situation for you both.

When your small business is undergoing necessary changes, it helps to have experienced legal guidance talk you through all your options.