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Small Business
How to retain employees
July 8, 1999: 3:30 p.m. ET

Six signs that a good worker is about to quit -- and what to do about it
By The Applegate Group
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NEW YORK (CNNfn) - The flush U.S. economy continues to be more and more of a bittersweet blessing for small-business owners, who are feeling the squeeze of the tight labor market as never before.
     While big business is also caught in the crunch, small companies -- which cannot offer the salaries, benefit packages and bonus incentives that are de rigueur in today's competitive job market -- face even steeper challenges.
     But there are ways to dam the exodus of valuable employees, says Diane Domeyer, executive director of OfficeTeam, a Menlo Park, Calif.-based temporary-employment firm.
     Domeyer, whose firm specializes in placing administrative staff, says employees often wave "farewell flags" long before they jump ship, and that smart employers can detect and address these warning signs before it's too late:
  • Going solo. If a once-active contributor to group projects is suddenly taking a back seat, the person may be keeping a low profile while they line up a new job.
  • Changing patterns. If a usually orderly employee seems to have lost their knack for organization, they may no longer have a reason to be concerned about their office appearance.
  • Dapper Dan. A normally casual employee showing up for work in a suit and tie may be all dressed up with some place to go -- like a lunch-time job interview.
  • Stretching personal time. Longer lunch hours, requests for additional vacation days, or time off with little notice could all indicate an employee needs free time for career research, job interviews, or even meetings at his or her new job.
  • The click off. Employees using the Internet, printer or fax machine to conduct job searches or send out resumes may seem over-protective or guarded about the materials on their desk -- or be quick to click off their computer screens when you enter their work area.
  • Phone fiend. An employee whose phone use has noticeably increased may be setting up interviews or negotiating offers.

     If you notice some or all of the above warning signs at your company, Domeyer advises taking action while the "farewell flags" are only at half mast.
     You may be surprised to find that an employee's job dissatisfaction has less to do with money than with finding the work rewarding or their efforts appreciated.
     "Managers must constantly provide the intellectual challenge and recognition necessary to retain key employees," Domeyer said. "This is particularly true of administrative staff who have become pivotal in an increasingly fast-paced environment, and whose technical skills are highly marketable."
     Of course, employers should also be aware that the above warning signs might not point to a job hunt, but to a variety of personal or professional problems that an employee may be facing.
     Domeyer says that's all the more reason for employers to be sensitive to behavioral changes in employees, and to address problems immediately.
     "It's preferable to act quickly based on your observations than to see a talented person leave," she said. Back to top

(Syndicated columnist Jane Applegate covers small business for CNNfn.com. Applegate, author of "201 Great Ideas for Your Small Business" and a business owner herself, also maintains the site janeapplegate.com to help her fellow entrepreneurs.)

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