Potentially losing a great team member
The Problem Statement
One of the toughest challenges for an SME owner is seeing a long-term, valued team member contemplate leaving. It’s a moment that can feel both personal and professional—like watching someone who’s grown under your guidance prepare to move on. While it’s natural to want to retain great people, it’s also a sign that you’ve done something right. You’ve helped them develop, and now they see opportunities they might never have considered before.
But what does this mean for your business? Is it an unavoidable part of the cycle, or is there a way to nurture talent while keeping your best people engaged and committed?
HR Best Practice
Smart businesses prepare for this inevitability rather than reacting to it. Here are some HR best practices to minimise turnover and ensure smooth transitions when they do occur:
Career Development Conversations: Regularly discuss growth opportunities within the company. Employees often leave when they feel their development has plateaued.
Succession Planning: Identify and groom potential successors for key roles so the business isn’t left scrambling if a key person departs.
Flexible Career Paths: Offering lateral moves or new challenges within the business can keep employees engaged without them feeling stagnant.
Stay Interviews: Instead of waiting for the exit interview, conduct periodic stay interviews to gauge engagement and prevent issues before they become resignation letters.
The Psychological Perspective
From a psychological standpoint, employees leave for more than just a higher salary or a new job title. The main reasons often include:
Lack of Recognition: People want to feel valued beyond just a paycheck.
Desire for Growth: If employees don’t see a clear path forward, they’ll start looking elsewhere.
Workplace Culture: A positive and supportive work environment is a significant retention factor. If they feel disconnected from leadership or the team, they may seek belonging elsewhere.
Understanding these motivations can help SME owners proactively address potential concerns before they lead to an exit.
Red Flags to Watch For
Sometimes, the signs of an impending resignation are there if you know what to look for:
A shift in engagement—someone who was once proactive and involved becomes distant.
Increased frustration or disengagement in meetings and daily work.
A sudden uptick in LinkedIn activity or networking outside of work.
Hesitancy to commit to long-term projects.
Recognising these early signs allows leaders to intervene with meaningful conversations and potential retention strategies.
Conclusion
At the end of the day, it’s all part of the journey. People will move on, and some may even return. The key is creating an environment where employees feel valued, challenged, and connected so that if they do leave, they remember your business as a place they could always come back to.
And if this all seems a bit overwhelming, don’t worry—no one teaches this stuff in business school. But at RegenerationHQ, we have the skills and capability to help you navigate this and the many other challenges that come with running an SME.