Turnover: Preventing it and dealing with the aftermath

NEW YORK » A tight labor market and a shrinking pool of talented workers make “I’m quitting” some of the most dreaded words a small business owner can hear.

Staff turnover is a fact of life, but it’s particularly painful at small companies competing with larger businesses for workers. Owners learn they must make staff retention efforts a priority — including mentoring or changing workplace policies — and do some soulsearching if turnover increases.

When five out of 22 staffers left Dash Design last year, owner David Ashen understood that some naturally wanted to move on to new challenges. But he also discovered after talking to employees that they felt the culture in his New Yorkbased interior design company had changed since he brought in a new business partner. Ashen realized he needed to help employees feel more connected to the business, and focused on mentoring younger staffers.

“We ask them, where do you want to be in six months or three years, and create a path to do that. When we failed to do that, people were less satisfied in their work,” he says. Ashen has also started letting workers have flexible schedules and bring their dogs to the office.

Many companies find that a staff can be stable for some time, and then several employees leave at once. And with fewer employees, small businesses aren’t as able as big corporations to shuffle assignments when people leave.

At The SEO Works, a digital marketing company in Sheffield, Britain, five staffers out of 30 left in a short period last year for a mix of professional and personal reasons, managing director Ben Foster says.

When staffers who are on teams leave, co-workers can pitch in while a replacement is hired, Foster says. But when employees who work by themselves quit, the managing director “just had to step up and take on two roles,” he says.

The company has been changing its policies to try to improve retention, and recently also introduced flex time.

Owners find that one big thing they can do is be clear with younger workers who want to know there’s a chance for them to grow and develop new skills. Jeff Rizzo and business partner Matt Ross aim for each of their 10 staffers at product review website RIZKNOWS to understand what they need to do to win a promotion or a raise.

“If employees do not see a clear career path or opportunity for advancement, chances are they’ll look elsewhere after a year or

SETH WENIG — THE ASSOCIATED PRESS In this photo Dash Design’s founder David Ashen poses for a picture in his office in New York. When five out of 22 staffers left Dash Design last year, owner Ashen understood that some naturally wanted to move on to a new challenge. But he also discovered after talking to employees that they felt the culture in his New York-based interior design company had changed since he brought in a new business partner.