How to Spot (and Stop) Employee Turnover Before It Happens

A Practical Guide for Small Business Owners with Fewer Than 20 Employees

If you run a small business, you already know that every team member matters. One employee quitting can feel like losing an entire department. Suddenly, you're covering shifts, training replacements, and trying to keep everything running smoothly without dropping the ball.

And it's not just about lost productivity. Replacing an employee costs time and money. According to some estimates, it can take up to six months' salary to fully replace a team member when you factor in recruiting, training, and lost momentum.

But what if you didn’t have to be caught off guard? What if you could start to predict when someone was thinking about leaving—and take action before they did?

You don’t need a fancy algorithm or an HR department the size of a football team. With a little awareness and a few simple strategies, you can catch the early signs of disengagement and put a plan in place to keep your best people.

Let’s break it down.

Why Turnover Hits Small Businesses Hard

When you have a team of five, ten, or even twenty employees, every person plays a key role. Losing just one can:

  • Delay projects

  • Decrease morale

  • Overburden your remaining team

  • Force you to drop the ball on customer service or production

Unlike big companies, small businesses don’t always have extra staff waiting in the wings. There might not be a full-time recruiter on staff.

And while you're juggling operations, sales, and payroll, hiring a replacement can feel like a full-time job in itself.

That’s why preventing turnover—or at least reducing the surprise factor—is such a game-changer.

The Good News: You Don’t Need Fancy Tools to Predict Turnover

Big companies might use sophisticated HR analytics to forecast employee flight risk, but you don’t need a software subscription to start seeing the signs. You have something even better: direct access to your people.

Here are five places to start gathering the kind of insight that helps you stay ahead of turnover.

1. Exit Interviews & Informal Feedback

If someone has left recently, take a moment to reflect on why.

  • Did they mention feeling overworked?

  • Were they seeking higher pay or more flexibility?

  • Did they want growth opportunities you couldn’t offer?

Whether it’s a formal exit interview or a quick post-departure chat, gathering this information can help you spot patterns. If multiple people cite the same issue, you’ve got a clear place to start making changes.

2. Watch for Disengagement

Most employees don’t quit overnight. Before they walk out the door, they typically show signs:

  • Less enthusiasm or participation

  • A drop in performance

  • Increased absences or tardiness

  • Avoiding team activities or meetings

These might not always mean someone’s leaving, but they’re signs of someone pulling back. Check in early and often.

3. Salary and Promotion History

Are you rewarding effort and results? If someone has been passed over for raises or promotions multiple times, they might feel stuck—even if they’ve never said it aloud.

Take time to regularly review:

  • Pay equity within your team

  • Opportunities for growth or added responsibility

Recognition doesn’t always have to mean a raise or a new title. But if there’s no forward momentum at all, good people will eventually look elsewhere.

4. Regular Manager Check-ins

In a small business, you likely wear multiple hats. But no matter how busy you are, make time for one-on-one check-ins. These aren’t performance reviews—they’re opportunities to connect.

Ask things like:

  • How are things going for you lately?

  • What’s feeling frustrating right now?

  • Is there anything you need that you’re not getting?

Even 15 minutes every month can help employees feel seen, heard, and supported. And it gives you a chance to spot concerns early.

5. Employee Milestones and Stress Points

There are times when people are naturally more likely to reevaluate their job:

  • After a tough quarter or project

  • During a personal life change (moving, having a child, etc.)

  • Around work anniversaries

Be especially proactive during these moments. Ask how they’re doing. Reinforce their value. Offer support or flexibility when possible.

What to Do When You Spot a Retention Risk

Let’s say you’ve picked up on the signs. Maybe an employee has been quieter, missing deadlines, or showing signs of burnout.

What now?

1. Don’t Wait—Have the Conversation

Sit down and talk. Not in a performance-review kind of way—but in a human-to-human way. You might say:

"I've noticed you seem a little off lately. I just want to check in and see how you're doing. Is there anything you need, or anything that's been bothering you?"

Give them space to be honest. This isn’t the time to defend policies or explain your side. It’s a time to listen.

2. Ask What Would Make Them Want to Stay

If someone is considering leaving, it might not be too late. Ask:

  • What would make your work here feel more sustainable?

  • What kind of growth are you looking for?

  • What support would help you do your best work?

You might be surprised by how fixable the issue is. Sometimes it’s a small tweak, like adjusting a schedule or clarifying responsibilities.

3. Revisit Career Development Plans

You don’t need a corporate ladder to offer growth. You just need to show that you care about your employees’ futures.

Growth might look like:

  • Learning a new skill

  • Leading a project

  • Mentoring a newer employee

Even if your business is small, you can build development into the day-to-day.

4. Address Workload Balance

Burnout is one of the most common (and preventable) reasons people leave. When someone is stretched too thin for too long, they hit a wall.

Be realistic about:

  • How much one person can reasonably handle

  • What deadlines can shift

  • Where you might need outside help (temporary or permanent)

5. Make Recognition a Habit

It doesn’t take much to help people feel appreciated:

  • A thank you note

  • A shoutout in a team meeting

  • A small, unexpected perk (like a long weekend or lunch on the house)

People stay where they feel valued. Recognition is one of the easiest ways to make that happen.

Turnover Happens. But You Can Lessen the Impact

You won’t be able to stop every resignation. Life happens. Career paths shift. Sometimes, people move on.

But that doesn’t mean you can’t:

  • Reduce the frequency of surprise exits

  • Build a stronger, more engaged team

  • Create a workplace people want to be a part of

Turnover isn’t just a big business problem. It’s a people problem—and when you lead with connection, clarity, and care, you stand a much better chance of keeping the people who make your business great.

Need help building an HR system that supports retention and engagement?

At On Demand HR Solutions, I help small business owners like you put the right systems in place—so you can spend less time reacting to problems and more time building the team and business you envision.

👉 Grab my free HR Foundations ebook here.

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