In a small business, every employee counts. When a key team member decides to leave, the impact can be felt throughout the organization. Suddenly, you’ve been thrown back into the trenches, scrambling to figure out what’s next. This “oh no” moment can feel overwhelming, but don’t be tempted to put off the hiring process. Delaying will only add to your stress and disrupt your strategy. Instead, make hiring a priority—but don’t settle. Employee turnover is a common challenge for small-business owners, and it can easily derail your growth plans. How can you get back on track and even use this change to your advantage?
First, let’s examine why employees leave and what you can learn from it.
Why do employees leave?
Before you start the hiring process, it’s important to understand why employees leave. Prior to starting my business consulting service, I spent more than 20 years in executive leadership and have seen my fair share of turnover. Based on my experience, here are the top five reasons employees seek opportunities elsewhere:
1. They don’t feel appreciated
Actively appreciating your employees is essential to growing your business. Strategically planning appreciation ensures you show gratitude in ways that resonate with each individual, and this fosters a positive workplace culture.
By the way, if you want to learn more about how to how to show more authentic appreciation, check out The Five Languages of Appreciation in the Workplace by Gary Chapman.
2. They want a challenge (and you aren’t providing it)
Many employees need challenges to stay engaged. They may seek promotions or added responsibilities. While it’s tempting to keep them in their current role because they excel, it's crucial to challenge or promote them when possible. If they outgrow your organization, celebrate their success. You contributed to it!
3. They have issues with their direct supervisor
Dissatisfaction with a direct supervisor, whether it's you or someone else, leads to unhappy employees and can spread negativity. Address this by offering coaching, providing communication training, or reorganizing. The key is to recognize the issue and have a plan to fix it.
4. They want (and deserve) more money
When employees discover they’re underpaid, they either leave or ask for a raise. Either way, your reputation with them takes a hit because they don’t feel appreciated. To avoid this, regularly review salaries and benchmark them using external sources to ensure fair compensation.
5. They need work/life balance
A long commute time, long hours, and having to work off-hours at home can lead to burnout. Employees work to live, not the other way around! It’s crucial to strategically support their work/life balance, giving them time to succeed both at home and at work.
Understanding why employees leave can help you take steps to prevent future departures. By addressing potential issues early on, you not only reduce the risk of turnover but also create a more positive workplace culture. When an employee does decide to leave, however, you can take additional steps to manage the transition smoothly, minimize disruption, and maintain a professional atmosphere. Let’s look at three key steps to help you manage this process effectively.
Turning Departures into Opportunities
Step One: Maintain a good relationship with the exiting employee
Keeping a positive relationship with an employee who is leaving has clear benefits. Unless something serious occurred, try to stay connected. Remember, this person may continue to speak about and recommend your business after they leave. They might even wish to rejoin your team in the future. Plus, maintaining a friendly relationship is better for your mental health as well.
Step Two: Learn from the exit
Is there anything in your business that should change as a result of this departure? Consider feedback from the exiting employee, as well as insights from other team members. If you're not open to constructive criticism and not willing to adapt, you may be setting yourself up for further turnover issues.
Step Three: Redefine the position
When a position opens up, it’s an excellent opportunity to reassess and redefine the role in your organization. Before rushing to hire and fill the position, consider what you truly need from this position. Could different skills or qualifications help drive business growth? Take this chance to align the role more closely with your evolving goals.
Ready to Hire and Grow!
By understanding why employees leave and proactively refining your organization, you’re now better equipped to move forward with confidence. Don’t delay the hiring process. Though it may be tempting to wait to save on costs, remaining understaffed can hinder your long-term growth. Prioritize finding the right person to support your business’s continued success and keep your strategy on track.
Employees are an investment in your growth, and managing their departures thoughtfully is crucial for long-term success. If you’re ready to build a stronger team or need guidance on making sustainable business investments, let’s connect. I’d be happy to help you create a strategy that supports both your team’s development and your business’s growth!
Comments