Gene Smith of Alien Entertainment in Villa Park, Illinois saw manager Steven Bates' column on breakaway employees (see ''I Think I Can Manage, Thank You' -- Breaking Away') and offers his advice on the situation:

 

It's good that you keep an eye on profits and sales figures.  When you see a major change happen you have to act fast and take control before the damage is irreversible.  When sales are dropping and orders for new products are increasing its time to investigate.  Check the inventory to see if its an over ordering issue with product sitting on the shelves or are you giving to much of a discount to customers.  If that's not the case than there can be only one answer -- theft.  Employee theft has sent many companies into bankruptcy and out of business.  This includes keeping an eye on all employees and managers.  I learned this lesson the hard way by not acting fast enough and lost a company in the mid-90s.

 

Profit sharing or a partnership/ownership percentage for managers can go a long way towards keeping your best managers.  Store managers are face to face with customers on a daily basis and that builds loyalty.  If that manager is unhappy and wants to start up their own business it is easy for them to 'take' a percentage of customers with him/her.

 

It is good to do a quarterly evaluation of a manager and give a bonus for success and at the same time find out what the manager would like to accomplish than set goals that you would like to achieve and reward accordingly.  Another great tool to use is the non-compete contract.  An attorney can draw one up quickly and it can save store owners a bundle in damage control and money.

 

When an employees gives notice it is best to release him/her straight away unless they are leaving on good terms.  The reasoning behind that is the quality of work will be diminished as well as the focus of the individual.  Trump would say 'You're Fired!' and I've released several employees with the saying 'See the door?  Don't let it hit you in the ass as you walk out.'

 

The opinions expressed in this column are solely those of the columnist and do not necessarily reflect the opinions of the editorial staff of ICv2.com.