How to Hire—and Keep—the Best Employees
It’s no question, you need the most high-quality employees at your establishment, whether you run a restaurant, liquor store, salon, or hotel, your people are the face of your small business. And like the saying goes, good help is hard to find (and even harder to keep). As Baby Boomers exit the labor market, they’re being replaced by Millennials; according to Pew Research Center, Millennials are now the largest generation in the U.S workforce, so expect to be flooded with resumes when you start the hiring process. Your dream employee is out there—we promise.
We’ve talked about how hiring the right employees can save your small business money in the long run. But how do you go about hiring them, and even more importantly, retaining them as employees with your small business?
When making salary decisions for an open position, do you base them on your budget, or what the market is asking? A mistake small businesses make when determining how much to pay employees is to only take into account what they can afford to pay someone. Of course, budget is an inevitable factor, but it’s critical to do your research into what other businesses are offering for the same position. Glassdoor provides salaries for thousands of jobs within various industries, and it’s a great resource to set a benchmark for your pay rates. If you’re advertising an hourly wage that’s lower than your competitor down the street, great applicants might just pass you by.
Oftentimes, when it comes to making a decision on where to work, it all comes down to benefits. Does your company offer health insurance? Paid time off? Sick leave? A 401k option? Employee benefit programs have become a non-negotiable to those in the labor force today, so you’d do well to offer some sort of incentives if you want to retain top talent.
Promoting a great work/life balance to your future employees is key to keeping them on board. According to Mental Health America, “When workers are balanced and happy, they are more productive, take fewer sick days, and are more likely to stay in their jobs.” So, the benefit is twofold: Your staff is happier and healthier, and you get to enjoy having a workforce of great employees who have your business’s best interests at heart.
Oftentimes the most dedicated employees are the ones who want to advance their careers. They tend to be more driven, determined, and focused, which is a huge plus for you as a business owner. Give them a reason to stick around by offering a clear path to advancement and giving them the resources they need to take advantage of it. Think about what your position can offer in terms of growth, whether it’s the chance to hone new skills or the first step to securing a role with greater responsibility. Present these future opportunities as you’re going through the interview process, and your ideal candidates are sure to be pleased.
Competition is high in the labor market these days—with unemployment currently at a 49-year low, the employee supply is low. Give yourself a leg up on the competition by offering a signing bonus. Signing bonuses can also be used in the event you can’t offer the employee as much money as they wanted but still want to bring them on board, or to make up for benefits they may be losing out on from another company by joining your team. Bear in mind the signing bonus has to be large enough to matter to the employee, and it’s best if it’s tied to the employee staying with the job for a certain amount of time; otherwise your new hires could just take the money and run.
Attracting and retaining the best of the best for your business can end up costing some money—especially if you’re going to have to spend a little more to secure the most promising candidates. With a loan from ARF Financial, you can rest assured you’ll have payroll covered. Our terms are designed to meet your small business’s needs, and approval takes just days (no collateral required). Visit us online today for a no-cost quote. One of our expert loan consultants will be in touch to help you build the perfect loan solution!