Teena owns a moderately successful Cuban restaurant, but finances are

QUESTION

Teena owns a moderately successful Cuban restaurant, but finances are always tight. Her chef is extremely talented and a key factor in the restaurant’s success, but he has been considering offers from other restaurants.

What is Teena’s best strategy to retain this important asset?
A) offer the chef additional vacation time and a year-end bonus
B) give the chef a new management-oriented title
C) give the chef a raise and buy lower quality ingredients
D) offer the chef an ownership stake in the restaurant
E) let the chef leave and hire one who will be more loyal

ANSWER

Answer: D
Explanation: D) Retaining good employees can be a problem for small businesses that have limited finances and little room for professional growth. Offering partial ownership to valued employees gives them additional potential earnings and can increase their commitment.