One of the biggest headaches for any manager is replacing an employee who resigns. Not only does losing an employee mean you need to spend time and money recruiting their replacement, it also makes it difficult to get your department's work done. Other employees need to pick up the departing employee's work; they may resent it and start thinking about resigning themselves. The best way to solve this headache is to prevent it from developing in the first place, by reducing your turnover. Here are some things to look at to help you keep your top talent.
Offer financial rewards.
Periodically review your compensation bands and make sure you're paying market-level salaries. Beyond the paycheck, make sure your company offers other competitive financial benefits, including a well-structured 401(k) plan.
Understand your employees' perspective.
Don't wait until an end-of-year annual review process to find out how your employees feel about their jobs. Talk with them informally throughout the year. You can also conduct surveys to collect anonymous feedback that may include opinions no one would tell you to your face.
Tailor work assignments to employees' preferences.
It's probably not possible to ensure that your employees will enjoy all of their work responsibilities every day, but you can make sure they're assigned to projects and roles that are in line with their interests and abilities. Make sure employee reviews include discussions of what they'd like to work on. When new projects come up, don't simply assign people based on what they're currently doing; assign them based on what they would like to do.
Offer emotional rewards.
Saying "thank you" costs nothing but goes a long way in making employees feel like their work has meaning and is valued. Praising someone's work in public is especially valuable. Make employees feel like they're part of a team, and that the team matters, by having occasional low-cost team celebrations. These acts boost morale and make employees less likely to give notice.
Don't wait until they give notice.
In most cases, if you're an involved manager, you should have a sense that someone on your team isn't happy. There will be even more signs when they progress to actively interviewing, such as moving away if you pass by when they're on the phone or showing up to work late wearing nicer clothes than usual. You probably don't want to flat-out ask them if they're looking for another job, but you can and should make the effort to ask how things are going. If you find something you can change for them before they give notice, you may never have to deal with their resignation at all.