Most small businesses with employees have recognized the ability to hire as their number one problem! SBDC has identified some best practices in hiring in today’s competitive hiring market.
There are many ways that can set a business seeking employees apart from others:
If you are considering a new hire who is currently employed elsewhere, it will require you to show prospective employees your advantage in order to lure them away from the security of their current situation. Consider offering a signing bonus and/or a cash incentive awarded after a certain tenure of employment.
Sometimes, your current employees are your best referral for new employees. Offer them a finder's bonus if they recommend a new employee and that new hire is employed for a defined period of time.
If the company has initiated a remote working policy during Covid, continue with that for a hybrid model. If you can sustain a remote-work employee, rather than view this dynamic as another small business challenge, consider the benefits. Your hiring pool just went national, and you can perhaps source employees anywhere in the country — even in places with a lower cost of living and lower salary requirements.
Assume that your best employees are at least curious about the job market. Do what it takes to keep them secure and satisfied, either through a spot bonus or a well-deserved promotion. Even a modest increase in payroll is better than the challenges and high costs of hiring and training a new employee.
Shout out who you are to prospective employees. With this tight labor market, your good marketing strategy that attracts new customers’ needs to be balanced with a marketing strategy to attract a full staff so that you can serve all your customers.
Expect your wage scale to increase causing an increase in labor costs. See if there are efficiencies within the company to be able to consolidate jobs or use technology to make jobs easier.
Finally, as your wages increase, you should review your prices and your revenue streams. We have experienced wage inflation since the pandemic, causing prices to increase. Don’t be afraid to be a leader in your industry for price increases. Unless your market is too price sensitive, your competitors will likely follow your lead.
Read the first article in this series, Hiring Tips in a Tight Labor Market.
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