Is it possible for your employees to be too good for your company? Definitely. Especially when you have a small company.

That may sound strange, but I’ve seen it happen several times.

You strive to hire people who are energetic, bright, and skilled. Everything works out great for a year or two and you’re patting yourself on the back about your brilliant recruiting abilities. In fact, you’ve already promoted this person once and she’s ready for even more challenges.

Many companies will choose to create a new position for this stellar employee so they won’t lose her. But it’s a mistake you’ll pay for down the road. I can tell you that it’s very hard to clean up a company full of employees with strange, made-up titles and inflated salaries. 

Don’t promote promising employees into titles that can’t be sustained outside of your company. You aren’t doing anyone a favor by making them a senior manager with only the responsibilities of a supervisor. The title and level of responsibility should match up, both in your company and others.

Your first responsibility is to your company. Ask yourself what positions are absolutely needed for maximum efficiency and production. If your best employees fit into any of those roles, great … promote them. But don’t make up roles just to placate your employees.

Small companies don’t have the quantity of departments and positions that will allow much internal movement. Fighting that fact will only disrupt your company and lower employee morale due to perceived favoritism. 

The best way to manage your stellar employee and extend the length of her employment is to find new challenges for her. Give her special projects that don’t belong to someone else. Have her help create training for others or giving the training. Provide cross-training. Give her the task of coming up with ideas for expanding her position. Be imaginative.

If you are doing your job well, you need to be prepared to offer career advice that may take your best employees beyond your company. Sometimes, moving on is the only alternative for a good employee’s personal and career growth.