Steps to take when a Key Employee Quits – ITPN-EP17

You're having a great day when one two of your key employees walk in and quit!
I've been in business for over 21 years and I have had more than a few key employee come and go.  It is part of what you signed up for when you became a business owner and entrepreneur.  Unfortunately, I walked in on Monday morning and had not one but two employees give their notice to quit.   Actually one quit and the other one retired.
Now What?
My two employees quitting had nothing to do with each other but you may find times when you have a mass exodus in your company and that's when the shit really gets serious.  But for the purposes of this podcast, let's just assume you are losing one key employee.   What should you do?
Take a second to Breathe
Speaking for myself (because that's the only one I can speak for),  my initial reaction when someone quits is to blow fire either into their face or through the phone line!  Over the last twenty-some years, I have learned its much better to just slow down and take a few deep breaths.

If the person is sitting across from you this might be hard to do and maybe you want to postpone the discussion for a few minutes if that will help you get your act together.   Your first reaction is to take it personally but most times it isn't.

Top performers or key employees don't just work hard on your business they work hard on themselves too, if you want to build a team of the best people you need to expect turnover especially if they have outgrown the role you have for them.    If you cannot provide them with advancement then you should expect them to go chasing after a new opportunity.   Before you speak to the key employee that is leaving, try to adopt a mindset of being grateful for what they have brought to your team.
Then open your mouth...
And have a warm, friendly conversation with your key employee that is moving on.   Try to get to the real reason they are leaving but don't judge or disagree.  Whether they believe it or not at this point is irrelevant.  They feel it.    Leave your ego at the door, most times we are the employee bear at least some of the blame as to why they are leaving.

Remember you have NOTHING to gain by making this adversarial.   You have everything to gain by acting with respect and warmth.  Think about that quick answer you might need a month from now, or that glassdoor review the employee might give you or the fact that if times changes there may come a time that you would want this employee back on your team.  I have hired back a few employees over the years.
Decide what you want
There may be times when you what to really fight to keep this key employee.   You will need to make a split decision on what you want to do.   Some people, usually when they are desperate, will make a counteroffer to the employee.   Unless they are truly a key employee then I would suggest you re-think this.   Making a counteroffer at this stage is often like when a couple has decided to divorce and then they decide to reconcile.  The damage is already done, there is a lot of healing that needs to occur.  Most times this is not worth it in business.
Set your Expectations
Make sure you review any employment agreements and your expectations for the future.   If there are references in your employee agreement about customers, other employees and intellectual property make sure you remind the employee that these exist and they are non-negotiabl.
A word about non-competes
We have them in all of our agreements but we don't always enforce them.  Most of the time when a good employee is leaving it is because either you cannot or will not give them what they need.    Why would you hold them to a non-compete?  Make sure they understand they are to have no contact with your employees or your clients but other than that set them free.

 
Tell your Team and Turn a Negative into a Positive
First and foremost you need to be honest with your team about the key employee leaving.