“To retain this team member, I think I’ll golden handcuff him to the business.”

My client is the owner of a successful industrial supply business in country South Australia.  He was concerned about a key team member leaving.

I challenged him: “Why?”

“He’s the Ops Manager. His success in the role has allowed me to step away from day-to-day operations and do what energizes me – generating business through building deep client relationships. If he leaves, I fear I will be pulled back into the stresses of day to day management.”

“How do you know he wants to leave?”

 The business owner leaned forward: “He and his wife just had their first baby. She’s pushing him to move back to Adelaide so she can be near family support networks.”

 He continued: “I know he’s interested in owning his own business. So if I offer him equity now, he won’t move.”

 I responded: “Don’t do it.”

He looked at me, puzzled. “Why not?”

 “Tying him financially to the business works for you. But does it work for him and his family?”

 “It doesn’t. He’ll resent you and the business as the pressure from his wife increases. You’ll have an Ops Manager who feels trapped, not committed.”

 I let that sit.

The business owner leaned back, exasperated. “So what should I do?”

“Have a conversation with him. Ask directly if he’s planning to move back to Adelaide. If he is, work out a timeline that suits both of you. Use your network to help him find a similar role in Adelaide.”

 He got it.

“You’re managing him out of the business on your terms, not his. You get time to find a replacement. He gets support for the transition. And more importantly your relationship with him continues positively.”

 He left committed to having that conversation.

The best teams aren’t built by trapping people.  They are built on how you treat them particularly when they decide to leave.  A graceful exit leads to referrals, partnerships and a reputation that attracts better talent.  Golden handcuffs create resentment.  Grace creates loyalty.