Small businesses face a challenging task of staying competitive in today’s economy. If you are new to hiring and retaining employees, it is crucial to conduct thorough research before embarking on the recruitment process. Although smaller companies may not have the financial resources to offer lavish perks like large corporations, they often have more flexibility and adaptability than their larger counterparts. Think of a small speedboat navigating around a massive oil tanker. Here are some tips to help businesses of any size, including franchises, home-based, or online operations, attract and retain talented employees to aid them in achieving greater success.
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.
Compensation takes many forms beyond just money. Offering benefits such as medical, vision, dental, paid sick time, paid vacation time, and investment opportunities in the company can enhance the appeal of any employment package for potential hires. Small businesses commonly offer paid vacation time as a benefit, as it typically incurs no extra expense (since employees are paid regardless). Additionally, providing schedule flexibility and accommodating special circumstances, such as caregiving responsibilities or pet ownership, can make your business stand out when potential employees are weighing their options. Unless your aim is to attract only short-term employees, offering such benefits is crucial.
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.
Alliance Direct Benefits
is committed to assisting in the success of its 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).