From a sustained strong labor market to the Silver Tsunami, countless factors are putting pressure on the job market. Finding quality talent has never been harder, and even the best brands in the most attractive industries are struggling to keep talented people in-house.
HR teams and recruiters have the resources and long-term capabilities to face the ongoing challenges of recruiting and retaining talent for the foreseeable future. In contrast, entrepreneurs tend to have fewer resources and smaller teams.
Entrepreneurs have fewer resources, talent is harder to find than ever, and solid talent pools are shrinking. … [+]
Still, there are ways all business leaders can improve talent acquisition and retention. Here are three tips to help leaders and their teams attract and retain the best talent in their industries.
1. Think strategically about compensation
If you’re setting employee compensation solely based on basic market research, think again. Entrepreneurs should always operate with a “David vs. Goliath” mindset. If you want to beat big companies in a mathematically driven field like compensation, you have to avoid downsizing and direct competition situations.
Nerdwallet suggests starting with the big picture: “Consider how much you want to spend on pay for all your employees before deciding how much to pay each one.”
Only then can you consider how much you can pay per salaried employee. Go beyond average salary numbers and properly define the job description and consider the salary expectations of your candidates. Also consider a generous benefits package.
Approaching compensation in a holistic, comprehensive and informed way will give you the best chance of attracting the best talent. From the outset, you send the message that you’re joining a brand that understands how to reward its employees appropriately.
Outsource what you don’t get paid enough for
Another benefit of starting with a comprehensive assessment of your staffing budget is that you know who you can hire. This gives you the opportunity to consider all your workforce needs, whether you should pay each employee a reasonable salary, and whether it fits within your budget.
If these don’t line up, it may be time to outsource some tasks. Doing your research up front can help ensure that your in-house, salaried employees are absolutely essential to your full-time staff.
From there, smaller or less frequent needs can be separated out and handed off to a third-party agency or contractor. Job site Field Engineer highlights the fact that freelancers and contractors are inherently lower cost. Even if you pay them a higher hourly rate or per project than a full-time employee, it adds, “freelancers don’t require the expenses or resources required for training and onboarding, nor do they require sick leave pay, vacation pay, medical, dental, or other benefits.”
Separate key positions and offer them a competitive full-time salary. Then outsource the other tasks at a quality rate. That way you can hire quality people part-time who feel they are being fairly compensated and still meet your needs.
Introduce employee perks
Once you have employees on board, you need to think about how to keep them. Retention is more subtle because you can’t wow them with a fancy hiring package: they’re already on the job and (ideally) earning a good salary with benefits.
This is where entrepreneurs can invest in a more personal element through their corporate rewards programs. Working Advantage emphasizes that to do this, you need to know your employees’ needs and preferences. The employee discount platform adds that it’s important to take the time to learn about what motivates your employees. “Different employees have different values, needs and preferences,” they explain. “Some prefer financial rewards and public recognition, while others prefer learning opportunities or extra time off.”
Finding the best compensation, recognition, and other benefits for your specific corporate team starts with asking the right questions: What are your employees’ work schedules like? Do they tend to be physically exhausted? Mentally exhausted? Emotionally exhausted? All of the above?
Use surveys, focus groups, and one-on-one conversations to get insights from your employees. Look for company rewards that match what your employees value most, like affordable vacation time, gift certificates, and more.
Recruitment and Retention
Entrepreneurs may have fewer resources when it comes to talent acquisition, but with the right strategy, they can punch above their means.
Thoroughly evaluate your recruiting strategy. Outsource at a premium to keep the best talent in-house and on your payroll. If you can do that, you’ll build a happy team and reduce employee turnover.
