Small businesses fighting to survive a downturn often overlook a second, quieter war: retaining their best staff. Kay Vittee, CEO of Quest Staffing Solutions, argues retention deserves the same urgency as cash flow during hard times.
Why businesses assume loyalty they haven’t earned
In tough economies with high unemployment, owners often assume staff have nowhere else to go and will simply stay put. That assumption is risky: employees who feel trapped with no prospects become measurably less productive, even if they don’t leave immediately.
What actually keeps good staff
- Identify and protect your top performers before any cuts, rather than losing them in a blanket reduction
- Keep communication open through regular, honest staff meetings
- Involve staff in decisions that affect them, giving them a sense of control
- Invest in development and incentive programmes, which cost less than replacing a resigned employee
Frequently asked questions
Why do small businesses lose staff during economic downturns?
Often because owners assume employees have no better options and stop actively investing in retention, which quietly damages morale and productivity.
Is staff retention cheaper than replacing employees?
Yes, recruitment and training costs for a new hire typically exceed the cost of a targeted retention effort.
What is the most effective low-cost retention tool?
Consistent, open communication, including regular staff meetings and involving employees in relevant decisions.
Should businesses identify top performers before making cuts?
Yes, so that any necessary reductions protect the employees most critical to the business’s recovery.
Where can employers get guidance on fair labour practice in South Africa?
The Department of Employment and Labour publishes guidance on recruitment and fair labour practice.
Further reading: How a toxic employee can cost your business thousands
Originally published in 2016. Updated September 2026.
