Key employees

How do you identify key employees in your organization? Better yet, how do you define "key employee"?

A well-run business likely has many people contributing to company goals. However, even in an exceptionally well-run business, there are usually one or two employees who truly make the business run efficiently and profitably.

Although it may be easy to identify a company owner as a key employee because of the amount of time and capital he or she has invested in the company, defining other key employees can be more difficult because of the various roles they may play. Usually, a key employee is someone you would go to when a job needs to be done quickly and efficiently. This person could be a chief financial officer, foreman or administrative assistant who has been with your company for a long time.

This formula can help you establish a key employee's value so you can reward that employee appropriately.