In today’s world of record-low unemployment, small businesses are feeling the squeeze. Attracting and retaining top employees in this climate is a difficult task, and as any good small business knows, hiring the right talent is crucial to business growth.
The unemployment rate in Iowa has hovered around 2.5% for the last year or so — right about full employment. So how do you, as a small business owner, overcome the hiring challenges? Here are four ways to attract and retain top employees without having the biggest salary offer.
Purpose and meaning
Top employees typically aren’t in it for the money. And if they were, they would be hard to retain for a small business anyway. Most of the time, they are looking for a deeper purpose or meaning to their work. While you want to at least match the going pay rate for the position you are trying to fill, you can boost your chances by providing a purpose to your business. This is particularly true for young people, who strive to affect change in all facets of their life.
First, start by creating a mission and vision statement. Not only will these help guide your company, they will also give your prospective employees an opportunity to learn more about your business. Then, put policies and opportunities in place that cater to a purpose-driven employee, like paid volunteer time off, donation matching (even if it’s a small amount) or connections to community engagement events.
Remember, any sense of purpose and meaning must start at the top. Here’s a snippet from Toby Nwazor, CEO of the Millionaire Writers Agency.
“The desire for meaning and quest for purpose comes with a dose of energy that must be tamed, channeled to productive purpose-embedded tasks and followed through on,” he writes. “If young talent is going to stay with your business, they want to see that you can provide leadership while they get the job done.”
Flexible work hours and arrangements
Flexible work arrangements are becoming more and more prevalent in the modern workplace, especially among bigger companies. There’s a reason why: Today’s employees value flexibility, whether that be flex hours, flex days and/or remote work.
These benefits are attractive to all potential employees, and they don’t cost a thing beside a change in mindset and workflow. There are numerous benefits for the business as well. Some studies have shown that remote work actually contributes to more productivity and less burnout. A 2017 Gallup study found that 51% of employees said they would change jobs for one that offered them flextime.
Translation: Flexible work arrangements lead to happier and longer-tenure employees.
Growth opportunities
Nobody wants to be stuck at a dead-end job. A 2016 Gallup poll found that 87% of millennials feel that career growth opportunities are important in a job. While small businesses often have short corporate ladders and limited funding for higher salaries, they do have the flexibility to allow an employee to blaze their own path.
For self-starters, this could be even more attractive than the typical corporate ladder. Their careers will grow organically to find work they love to do. Leverage this advantage when interviewing prospective employees. It could be the benefit that entices them to join your business.
Create a culture
We know this is much easier said than done, and there isn’t a one-size-fits-all solution. The average American worker spends most of their days at work, and having a toxic work culture will lead to lower productivity and morale.
Culture is technically intangible, but it’s easily detectable by a prospective employee. Organically building your culture by rewarding employees, being flexible and avoiding micromanaging will go a long way toward hiring the right fit.
