When that order is up against its shipping deadline, who comes through for you? Your superstar. When you’re just not feeling well enough to make it to work, who keeps the shop running as smooth as silk in your absence? Your right-hand wo/man. What would you do without that special “go-to” person?
But for all their strengths, superstar employees can also pose the toughest leadership challenge—particularly in a small business. Managers don’t just manage processes; managers manage people. People with hopes, fears and emotions—no matter how unpredictable or justified. Here, we’ll take a look at some of the most difficult employer-worker scenarios.

The rules apply to all…or do they?

Sometimes, an employee is so outstanding, she seems almost irreplaceable. For example, the salesperson who brings in well more than half of the company’s revenue or the lead machine operator who is the only one who can keep the most productive press running. Could it be possible for that employee to violate a basic and important company rule such as accurately recording and requesting overtime on a time sheet and exaggerates hours or cheats on an expense report?
If such were to occur, there is the dilemma of whether or not to let them go and risk the potential impact on your business. What’s a manager to do? Surprisingly, there’s little judgment involved here. First, make sure you have all the facts—any time you consider firing an employee, you must ensure you aren’t making a decision based on inaccurate information. And, it should go without saying, document every last detail.
Then, let them go. Even at the risk of being sued for wrongful termination, fire them. No matter how “important” they may be to your business, employee policies are only as effective as your enforcement of them.

Capitulating, issuing a stern warning or doling out punishment creates a bigger problem. It suggests that employees will only receive a slap on the wrist on their first offense.

Either your work processes are broken, or your training program is ineffective, or you have a compensation and reward structure that tempts employees to cheat. Whichever it is, figure out the problem and fix it.
Next, look carefully at your work processes. Why was she such a superstar? Why was he the only one that could operate that machine? Most talented employees have skills that can be copied. Take a long look at your commitment to training and employee development.

Invest in people. Most well-trained employees view the knowledge and skills you provide as “supplemental income” and their loyalty to the company will grow, waiting for the next “neat” thing they learn.

“If I tell you, I’d have to…”

Let’s suppose sales are not where they could be, profitability is waning, and layoff rumors have been swirling for weeks. Your shop and sales team know you’ve had several meetings with investors, advisors and suppliers to discuss options of cutting costs—one as recently as yesterday. During that meeting, you decided to let go a few employees—maybe as soon as next week. Your superstar employee comes in your office and asks for a preview of what’s going to happen.

You know you shouldn’t say. In fact, you can’t say. But you’ve tried to build a solid rapport with all of your employees—always answering questions directly and giving honest feedback. How can you respond without breaking confidentiality yet not break the sense of trust you’ve built with your team?
Remember that any situation where you are asked questions you shouldn’t answer is made more difficult when your lips were loose in the past. Hard as it is to do, you can’t say what you know.

It’s always tempting to share sensitive information with certain employees—to have someone you trust to talk to. Sharing also builds a stronger relationship and bond... and makes managing a little less lonely.
But, that openness makes any “I really can’t tell you” situation that much more difficult. The best practice? Keep all sensitive matters to yourself, and never share information you aren’t allowed to share. That’s good business policy and it makes this challenge much easier with which to handle.

I don’t have a cookie jar

One employee stands out: She’s smart, energetic, self-motivated, consistently outperforms her peers, takes on leadership roles, and willingly volunteers when there’s a challenge. She wants to advance— professionally and financially—but you have no extra money to pay her or promotions to offer. And you know your competition would snap her up in a heartbeat.

In this situation, you can’t afford to be less than honest and forthcoming. There’s a good chance she already knows the story, but carefully explain the situation. If asked, give the reason why a raise is not possible. Discuss the current lack of higher positions. Admit you know she has other opportunities; don’t let that be the 400-pound gorilla in the room.

And, never make promises of more money or dangle the hope of opportunities that may not come through. You’ll be tempted, but resist the temptation. When false hopes go unfulfilled, great employees leave… bitter and scorned. In most cases, employees don’t leave companies or jobs. They leave bosses. Outstanding employees are typically loyal employees. Being a great boss—honest, fair and constantly seeking to improve the skills of your employees, to name a few traits—is the best way for you to keep great employees, even those who yearn for other opportunities. Good employees take pride in and glean satisfaction from their current assignment, without worrying about the next job or title. Fulfill such employees by giving recognition, feedback and additional skill development training for their assigned job rather than planting stars and dreams in their eyes.

When discussing advancements with employees, don’t go overboard. All employees deserve development opportunities. Spread the wealth. Go too far and you turn an outstanding employee into an entitled employee. Work too hard to keep a great employee happy and you may lose the rest of your team in the process.Good luck.