Question: In your last article you sited “losing key employees to competitors” as one of the 5 small business mistakes to avoid. I can only afford to pay so much to my help. How can I retain good people and not break the bank?

Answer: The expression “good help is hard to find” has never been more accurate. Competition for talented people is intense and the “best of the best” know it. If they are unsatisfied with their current job, they have no qualms about looking elsewhere.

Frequent turnover can disrupt team dynamics and cohesion. When employees stay, they build stronger working relationships and better collaboration, contributing to a more harmonious work environment.

A random sampling of employees conducted by Robert Half International, examined the reasons why top employees left their employ. Salary and benefits, while important, were not the only motivating factors. Their responses:

• Inadequate salary & benefits – 38%
• Limited opportunity for advancement – 20%
• Unhappy with management – 16%
• Overworked – 10%
• Bored with their job – 10%
• Lack of recognition – 6%

The message for business owners is clear. Helping top performers reach their goals and compensating them adequately for a job well done is essential to keeping them. The best employees are ambitious and may not stay in a job long if it lacks growth potential.

Retaining good people can be a challenge to small business, particularly when compensation or advancement is involved, but it’s not an insurmountable one.

When conducting annual employee reviews make sure they understand their entire compensation package. If you offer fringe benefits like employee and family health, life and disability insurance, paid vacations, 401k retirement plan or a health savings account, be sure they understand the dollar value of each. All too often they only relate to the bottom line, take-home paycheck amount.

If promotions are not an option, you can still find ways to reward extra effort. If budgets are tight, consider a more flexible work schedule to accommodate individual needs, and paid time off for personal emergencies.

Praise should always be given when warranted and management should encourage employee input before making important decisions affecting the business and their job responsibilities.

Also, remember that like any other important business asset, employees require their own form of care and maintenance. Bringing in temporary help during crunch times is one way to ease their workload and avoid burnout.

Engage your employees in finding ways to add some fun to the workplace, especially for jobs that involve a lot of repetition. This could include a competition among employees with the winner being designated “employee of the month”, and their name and picture prominently displayed in the break room. Their reward - an additional day of paid vacation.

Gray Poehler is a volunteer with the Naples Chapter of SCORE, Counselors to America’s Small Business. To ask a question or request free and confidential business counseling, call 239-430-0081 or log on to https://www.score.org/naples/local-mentors