Brooklyn's Progress
September 2001

By George Karayev If your company relies on the services, expertise and management skills of a few key people, losing one of them to a competitor could have a severe impact on your bottom line. Your star performers are the ones who may be wooed by other companies or may decide to set up their own shop. So, to protect your business operations, it’s prudent to cultivate the type of work environment that can help avoid costly key employee turnover. For example, many business owners have found that their top executives thrive on autonomy. They want a sense of job ownership and are likely to work well under such conditions because, in many respects, these people are entrepreneurs who just happen to work for you. If possible, give your top employees autonomy by passing on more responsibility for day-to-day business activities like planning, budgeting, hiring and firing and setting incentive goals for their people. Then, compensate them to a large extent on the basis of performance. This helps keep your key executives challenged and motivated—and gives them a feeling of being in business for themselves. Another effective tool in retaining key employees is benefits. These days, many people feel that a quality benefits package is as important as a competitive salary. And, a company that provides such a program is likely to become the employer of choice. Of course, because good benefits are expensive, you must weigh the cost-effectiveness of such programs. A comprehensive employee benefits package should include a retirement savings program like a 401(k), an aggressive health care plan and, perhaps, life insurance. You may also want to consider providing help with childcare, in the form of an on-site facility or in conjunction with a local provider. The point is that if you offer quality benefits, you create an environment where your employees don’t have to worry about these things. And, they stay. Finally, top performers generally get great satisfaction from personal development. Training, both internally and externally, can work to improve overall employee skills. As a result, your people feel good about themselves, and your company benefits from the improved management and technical capabilities.