Are your Golden Handcuffs strong enough?

The employee received a note from the CEO, thanking him for his hard work and sacrifice, and took care to mention the positive impacts the employee was having on the company. The note also mentioned that in his next paycheck, the employee would receive a bonus.

The larger-than-usual payroll check was deposited on Friday. On Monday morning the employee walked into his boss’s office and resigned, giving his two-week notice.

The economy is going gangbusters; perhaps the best in two or three generations. Right now there are 1 million more job openings than people to fill them.

It’s an employee’s market. Could the above scenario happen to you? The answer is yes.

Your better employees are likely to be poached by a larger firm that provides more security, has a better brand name, offers higher pay and has a better benefits package.

Many business leaders (owners, CEOs and entrepreneurs) state that “our employees are our greatest asset.” In many companies, if the truth were actually told, the employees are the business, which is why it is critical to keep the employees that make a significant positive difference on your payroll.

Not all employees are equal. I’m not talking about title or rank or tenure. I’m referring to contribution and cost.

Some people cost the company money; others make the company money. Some employees are loyal, hardworking and trustworthy; some are disengaged and have to be closely monitored to make sure they get their assignments done. Some do the minimal amount necessary to stay employed, showing no initiative; others consistently go the extra mile and do whatever is needed without being told.

If you are a business leader in the real world, not much matters but results. Those who produce more get rewarded more. This is not fair, but it is not meant to be fair. Agreement or acceptance is not required or necessary to understand the philosophy.

Tom Peters, the author of best-selling books on management, stated in a video I watched that “some employees are worth a lot of money. ... Some employees are worth a hell of a lot more money.”

Don’t think for a minute that your competitors don’t know who your best people are. They do. They also, by default, know who the not so good employees are.

What happens in an economy like this is that the best employees become highly sought after.

The best workers don’t care and often pay no attention to how the economy is doing but in a great economy, they know that they will have more opportunities.

And, these are opportunities they do not have to seek out.

What does it take to keep the best? It takes recognition and rewards. And as the leader, you have to be proactive because if you hesitate, or delay improving the size, shape and value of the Golden Handcuffs you are offering, your better employees won’t wait while you figure it out.

Here is a checklist of things you can do to keep your best employees, the hardest workers, the ones who make a difference in the company:

It starts by identifying who is critical to the success and growth of the company. Make a list of the “must retain” employees in your company.

Second, do a salary survey to find out what your competitors are paying. Identify the gaps in salary and benefits that you have to close. Put a dollar amount on it by position.

Third, reinforce the bridges, the relationships with those you wish to retain. For some insight into how to go about this, I recommend you buy and read the book “The Dream Manager” by Matthew Kelly.

Fourth, if you cannot give salary increases, consider giving your “must keep” employees more paid vacation time off.

Fifth, if you do not already have a bonus incentive plan, consider creating one that will strengthen the bond of your employees to the results they help generate for the company.

Sixth, if you are thinking of selling your business at some point, consider having an “event” payout bonus for the employees that helped you get to that critical “pay out” day.

Finally, if someone on your “must retain” list walks in and gives notice, consider it a wakeup call that something needs to happen on your end to strengthen the Golden Handcuffs you currently have.