For any size company, finding and keeping workers with the appropriate skill set and experience level is a difficult task. It can occasionally feel like an uphill fight for small business , in particular, to compete with other organizations for the same talent pool.
Small employers’ top business worries are finding and keeping talent, according to research from MetLife’s Employee Benefit Trends Study (EBTS), which focuses on small business trends. However, these worries are tempered by a demanding environment; 60% of small firms indicate that it is difficult to meet the demands and expectations of their employees regarding wage, according to statistics from MetLife and the U.S. Chamber of Commerce’s Small Business Index (SBI). Moreover, over half of companies searching for fresh talent find it challenging to offer perks and compensation that are competitive. These are but a few of the talent-related challenges that small firms face, on top of managing the day-to-day operations of their operations.
Some small firms are looking at new approaches to engage both current and potential employees in response to these obstacles; here are some examples to think about for your own talent acquisition and retention plan this year:
Providing Adaptable Work Schedules
It’s common knowledge that employees may more successfully combine their personal and professional life when they have flexible work schedules. Nearly seven out of ten small firms want to offer more flexible working arrangements this year, according to data from the most current SBI for Q4 of 23. This is a trend that will probably soon become standard for small business employees who frequently work hourly shifts. Considering that just 25% of small businesses, according to the EBTS, offer paid time off, more flexibility is a substitute for giving employees vacation time.
Recruiting From Talent Groups Often Ignored
According to SBI research, 71% of small businesses concur that hiring underutilized populations—such as veterans, spouses of military personnel, those who have served time in jail or prison, and legal immigrants—can assist fill employment gaps. Even with our efforts to return to pre-pandemic employment levels, the reality is that there are still 6.5 million unemployed workers in the United States for every 9.5 million job openings. By utilizing these distinctive cohorts, small businesses can address skills shortages and have access to a wider range of individuals with varying specializations.
Extending Offerings
According to SBI statistics, 50% of small businesses plan to use innovative strategies to attract fresh talent, like paying more, offering paid time off for illness, or mentioning wage ranges in job descriptions. These strategies make sense in light of the five workplace care pillars, which I discussed in my most recent Small Business Trends post, which you can read here, and their ability to enhance employee experiences both during and outside of work hours. Our EBTS results show that dental insurance (64%) and vision care insurance (61%) are of significant importance when it comes to benefits, which can be very useful in enhancing employee loyalty, contentment, and happiness. Offering extensive perks and programs can have a big impact on employee well-being because workplace benefits are so important to the employee experience.
Including Remote and Hybrid Options
According to the SBI, nearly half of small business employers intend to provide a remote or hybrid work environment by 2024. Companies are discovering that remote or hybrid work arrangements can help alleviate labor shortages in addition to long-term fostering increased employee autonomy. Especially considering that 53% of small firms in SBI research report that there is a labor shortage in their region, remote positions can assist employers reach candidates that they otherwise would not have been able to hire because of geographic restrictions.
Using Temporary Employees
Seasonal workers can be a great resource for small businesses, especially those in the food or retail industries, especially during peak business hours. It’s interesting to note that, according to the SBI, 74% of small businesses looking to attract seasonal workers planned to use hiring incentives or bonuses. While seasonal hiring might not be the best option for your company, you could still profit from alternative short-term options like contract workers or independent contractors.
According to EBTS data, ten percent of small business employees intend to quit their current employer within the next year. This highlights the significance of introducing innovative retention techniques to hold onto hard-earned current employees while simultaneously drawing in those who are prepared to make a shift. Employers of small firms have the chance to alter their recruitment and retention strategies in order to set themselves up for long-term success.
What adjustments does your company want to implement this year in order to foster a healthy work environment and remain competitive with respect to talent satisfaction, engagement, and retention?
