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Businesses places belonging to whether small or large organization play an extremely important role in employee productivity and turnover. Both of these HR parameters are important for small businesses. Productivity of employees in small business are directly linked to profitability and sustainability of the organization. Cost of replacing an existing employee with a new one is not less than 1.5 time his annual CTC. So it always makes sense to retain an employee.
Few parameters that can be controlled by the small business owner are future growth prospects, salary structure, work environment, life style changes and work place itself. It is not possible to score 100% on all of these parameters for all the employees all the time. However all efforts must be put in to optimize the situation. Each employee must be thoroughly observed and studies and accordingly motivated to work in the given role.
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