A recent article in the associated press got me thinking about how small businesses can compete in today’s world, specifically in the realm of attracting as well as retaining star talent. We’ve written briefly about this before, but the lessons to learn bear repeating.
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The Associated Press article raises 3 key points:
There’s more to a job than money. Small businesses often find themselves unable to throw more money at an employee to keep them from leaving for a better offer, but that’s OK. Sometimes it’s not really about the money, it’s about the smaller, somewhat more intangible things that can keep your talent around. Flexible scheduling is one big item on the wish list of many employees, and can be implemented without affecting the bottom line. Often, allowing more flexible work hours can even boost productivity and morale since it can have the effect of lessening the pressure of the work day and providing a sense of more control to the staff. Vacation time is another low impact incentive which can be especially effective with newer employees since, in larger companies, most folks start out with a minimum of vacation days if they have any at all. Going the extra mile to create a real sense of community can also be a great way to build loyalty. Small businesses usually operate in more ‘intimate’ and close knit work settings which can be tapped as a strength by emphasizing the more personal connection between all employees, management and staff alike. Frequent, less formal dinner meetings or after hours get togethers can foster a real sense of family and team spirit in a smaller workforce.
Keep your employees informed about the company situation, including the financials. One of the drawbacks of working for large companies is that it’s all too easy for an individual to feel like a small cog in a giant wheel, just another number. But everyone in a small business can be important and valuable, and one way to play this up is to open the lines of communication. Keep your staff informed of where exactly the business stands, how strong, or weak its position really is and what is really needed from everyone to maintain or improve performance. Giving your employees as much information as possible about your business, which is their business too, will foster a true sense of involvement and empowerment, making all involved realize they have a valuable part to play. Opening the books, so to speak, is a sure fire way to gain transparency and trust. When you share the company’s financial position with your team you’re making a statement that there’s nothing to hide and that you trust them with valuable information. They say knowledge is power and giving your employees as much information as possible about their work can result in better involvement and the realization that they too have a stake in what happens with the company.
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Don’t be afraid to let them go. As stated earlier, small businesses often do not have the financial strength to counter a more enticing offer from another company. It may be painful, and sometimes damaging, but you may have no choice but to let someone go if they are determined to move on. From the Associated Press article above, Michael McKean, CEO of a small business software company in Maryland reminds us that if more money is a primary motivating factor in keeping someone then you have consider how much loyalty they had in the first place.
This article in the Boston Globe offers some effective tips on keeping office morale high during lean times such as these. If you’re a small business owner, we’d love to hear your advice on retaining talent when push comes to shove, leave your tips in the comments section!
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