3 Tips for Hiring and Retaining Small Business Employees
July 31, 2015
Surviving as a small business in today’s economy is no small feat. The process of hiring and retaining good employees may be new to you, however — so it’s important to do your research and due diligence to make sure you find the right people. Retaining good employees can be difficult for small businesses as they often don’t have the deep pockets and can’t offer the fancy perks that larger companies can. That being said, small businesses often have a flexibility and adaptability with which larger companies can’t compete; think of a small speedboat maneuvering around a large oil tanker. Here are some ideas for small businesses — whether a franchise, a home-based, or mostly online business — to hire and retain the best employees that will help take the business to the next level.
Do your homework
What kind of employee do you need? How many hours a week? What sort of benefits can you afford to pay/provide? What are you legally required to provide? The Small Business Administration (SBA) website has all of the information you need to set up your business properly and can tell you how to cover yourself legally. There are even laws governing what you can and can’t ask in the interview, so make sure you read up or consult with your lawyer. By asking yourself the right questions and knowing the exact details of what you need and what you have to do, you should come to the interviewing and hiring stage with a firm vision of the type of person you want and need. This clarity will save you time and make you money down the road.
Money isn’t the only form of compensation. Medical, vision, dental, paid sick time, paid vacation time, and investment options in the business are a few of the possible benefits that can sweeten any employment package and make it more attractive to potential employees. Paid vacation time is the top benefit offered by small businesses, because generally there is no out-of-pocket cost (you are paying them anyway). Flexibility of schedule and adaptability to special situations — child or elderly caregivers, pets, other commitments — can also set your business apart from others when an employee is considering joining your company. You will need to offer something, though, unless you are only interested in attracting transient employees.
On average, replacing a $50K salaried employee costs a company $10K in retraining and operational loss costs while the new employee gets up to speed. In addition, the Bureau of Labor Statistics reports that the quit rate nationwide has risen over the last year. So it is more difficult and important than ever to keep a valuable employee! The top factor in retaining employees (according to the GrowBiz Media Small Business Hiring and Retention Survey 2012) is the management-employee relationship. The opportunity exists with a small business to be much more in touch with the day-to-day satisfaction of an employee, so make sure to make this a priority. The culture of the workplace, your employees being able to have fun at1 work, and consistent opportunities for growth and new skill acquisition can all add up to a positive work environment that can keep your best human capital in your company for many years. However, also keep in mind that zero turnover is not the end goal, so it’s ok if people leave from time to time — especially if they are not pulling their weight and dragging the company down.
The Alliance For Affordable Services is committed to assisting in the success of their small business members by offering numerous and varied benefits. These benefits can save your business time and money while increasing your bottom line; discounts are available on office supplies, tax and legal services, shipping, general business consultations and more. The Small Business Superpack is an optional benefit that adds an extra layer of protection should an employee or manager be injured on the job or disaster strike your home office equipment. For more information and to become an Alliance member today, visit the Alliance Direct Benefits website or call us at 1-800-733-2242 (M-F, 7am-5:30pm Central Time).