One thing about running your own business is that you have to take responsibility for everyone and everything. The buck stops with you, so to speak. And that includes making sure that the people under you are happy and content with their situation.
You may only have a handful of employees in your small business but that does not discount the fact that you still have to ensure that they are being taken cared of. This is especially important for those employees who are performing excellently and are essential to the success of your business. The last thing that you want is your “star employee” to bail out on you – that just might prove disastrous. What you need to do is set up an atmosphere wherein that person will want to stay with you mid- or long-term. How do you do this?
A very effective way of doing so is by providing enough incentive for the person to stay – not for a year, not even for two years; try five years or more. A term that has been used for financial incentives that are received for five years to ten years is “golden handcuffs.” The handcuffs part may sound negative, but let’s put emphasis on golden. This refers to incentives such as stock options, setting aside money in a fund that “grows by itself,” or even a lump sum bonus that is given at the end of the “lock in” period. Consider it as a reward for those who stay long enough and perform well at the same time.
The bottom line is showing your best employees that they matter to you and that you are willing to share the success of the company with them.
Originally posted on January 28, 2010 @ 1:28 am