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Also, keep in mind that this may be an opportunity for you, as an employer, to learn WHY your guy wants to leave. It could be his wife pressuring him to move on, him not satisfied with the salary you're paying, or even the way you ignore him when he comes to you with ideas. YOU NEVER KNOW. Instead of ending the relationship in a bad way, I'd just sit down with him and EXTRACT this useful information from him as it may prevent your other employees from going that same route in the future.
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