Having the ability to attract, hire and retain quality employees will always provide significant benefit to any small business who can master this ability. High employee turnover within a small company that currently has so few employees will mean constant new team member training. Turnover and extra training, in turn, will generally cause disruptions and will be difficult, at best, to manage during transitions. Small and midsize businesses struggle already looking for ways to effectively compete for employees against larger corporations. According to Goldman Sachs, 2018 – 10,000 Small Business Summit Report approximately 70% of U.S. small businesses face difficulty in hiring and retaining skilled employees.
Small business owners are currently affected by career trends and various unemployment shifts that increase the level of difficulty that any SMB will experience while searching for higher quality employees. We want to offer SMBs some possible solutions:
Begin By Understanding Small Business Advantages for Employees
• Smaller businesses are often less bureaucratic than their larger corporate counterparts. The lack of red-tape also will usually contribute to better relationships between employees and leadership.
• It’s more common that small business employers tend to recognize and treat their respective teams like members of their own families.
• Smaller businesses will often tailor an employee’s position to meet their needs, allowing for better diversity and flexibility in the workplace.
Possible Solutions –
• Business owners should do some preemptive research about starting salaries in their area. You’ll need to match the going entry salary rate to attract quality employees. The Bureau of Labor Statistics will provide free wage reports for various jobs, average salaries according to state and local areas.
• Millennials are already surpassing the baby boomers leaps and bounds. It’s quite likely that if your small business is going to continue to do well, you’ll have millennials working for you. For you to have the ability to hire millennials, you’ll need to create a company culture with which they will be willing to work.
Results of a study conducted in 2016 by Fidelity Investments showed that “Millennials report they are willing to take, on average, a $7,600 pay cut. Furthermore, when asked which is more important when evaluating an offer – financial benefits or improved quality of work life – 58 percent choose the latter.” Design a millennial-friendly culture.
• Hiring older workers for part-time positions would also be another consideration that would be beneficial. Many of the retirees who lost so much during the most recent recession have realized that they do not have enough to live on and are returning to work. They are skilled, excellent thought leaders and already have their medical coverage; they are only in search of a paycheck.
• Consider hiring disabled workers. So many disabled persons are available to work, but small businesses fear what may come with hiring disabled persons. If you think this would be an expensive disadvantage, think again. Take a look at The U.S. Department of Labor website. This section of the site offers much valuable information about the hiring and the financial benefits of hiring persons with disabilities.
If Possible, Offer Remote and Freelance Options –
• In a 2017 New York Post article about studies conducted by the Auckland University of Technology; the study found: “Shared work environments, and in particular hot-desking, are associated with increases in distraction, negative relationships, uncooperative behaviors, and distrust,”
• In most cases, they have their own tools to make it possible for them to work from a home office.
Be Sure to Offer Opportunities for Career Advancement Regardless of Where They’re Working For You –
• Remote or onsite -If your potential employees understand that they will have the opportunity to advance, receiving elevated status within your company, brand new challenges, and future pay increases, it’s likely they will consider your offer a valuable job consideration. This consideration will hold true especially for upper-level employees that you may be seeking. Once you’ve hired your desired employees, be sure that you often speak regarding career advancement. Feeling safe with their job is critical.
• Don’t just talk about the possibilities, make them happen and be supportive during their transitions. Keep an open mind, encourage their feedback and as long as it supports your company culture, allow them the autonomy as thought leaders and creators to forge their unique paths.
If You Truly Want to Retain Your Employees –
• Always acknowledge a job well done. The Gallup Business Journal stated – “The best managers promote a recognition rich environment, with praise coming from every direction and everyone aware of how others like to receive appreciation.”
• Show respect during times of crises and personal commitments, be sure they know that they will feel supported during a family death or medical emergency by providing the support and space needed as situations arise. If you care for them, they will, in turn, care for you and remain loyal to your business.
Small businesses naturally have an intimacy that will work for them which large corporations generally lack. This intimacy will work in your favor. Use these strengths to attract, hire and retain the exceptional employees for which you’re searching.
At Cogent Analytics, we never stop looking for ways to improve your business and neither should you. So, check out some of our other posts for helpful business information: