How Small Businesses Can Attract and Retain Employees
By Renee Boyda
Attracting and retaining top talent is a significant challenge for small businesses as they often have limited resources compared to larger companies. However, by implementing strategic initiatives, small companies can create a desirable work environment that appeals to potential employees and fosters loyalty among existing staff.
Ensure an Effective Onboarding and Offboarding Process
Effective onboarding is crucial for positioning new employees for success. Never assume that new hires will just “figure things out.” This gives the impression that the employer doesn’t care, which can lead to poor performance or a quick exit. Instead, take the time to explain rules and expectations clearly, and encourage questions. Relationship building is also significant to an effective onboarding process. Consider assigning a mentor to new hires. Mentors not only provide the information necessary to perform the job but also help to integrate the new hire into the social aspect of the workplace.
An effective offboarding process is equally important. Conducting exit interviews with employees who resign can provide valuable insights. An exit interview will help uncover the reasons why the departing employee is leaving as well as provide an overview of their experience working for the business. This information can identify opportunities for improvement wherever necessary.
Cultivate a Positive Workplace Culture
Creating a positive workplace culture requires a deliberate and consistent effort from leaders and managers. Small businesses have an advantage over larger companies as they can leverage their size to foster a close-knit, collaborative culture that values employee input and recognizes individual contributions. Positive workplace cultures encourage open communication and seek input from employees on process improvement, workplace safety, customer experience improvements, etc. Another important aspect of workplace culture involves fostering a climate of respect and dignity for all. Tolerating disrespect reduces productivity and morale, thus increasing turnover. A positive workplace culture is a proven method to bolster employee engagement, retention, and productivity.
Provide Praise and Recognition
Frequently acknowledge employees who go above and beyond. Establish formal and informal recognition programs to celebrate outstanding performance milestones and valuable contributions. This might involve recognizing employee work anniversaries, achievement of goals/targets, such as enrolling a set number of new customers into the company’s reward program, or providing recognition based on annual performance reviews. Sincere appreciation and public praise can go a long way in boosting morale and fostering a sense of value among employees.
Lead by Example
Managers and owners should model the desired attitudes and behaviors. Be present on-site, assist your team, and build trust. Be true to your word and treat your employees with respect. Managers and owners play an essential part in the employee experience and, therefore, employee retention.
Maintain High Standards
While providing a positive environment, ensure employees stay focused and don’t become too comfortable or complacent in their roles. Excellence requires consistent effort and awareness, challenging employees to perform at their best. This can be very motivating and energizing for self-motivated individuals. Additionally, maintaining high standards fosters a culture of accountability, where employees feel responsible for upholding a reputation for excellence. Recognizing employees who meet or exceed high standards provides positive reinforcement.
Offer Perks or Incentives
While small companies may not be able to match the salaries of larger organizations, they can offer special perks tailored to their employees’ needs. Consider employee discounts on food or free services like car washes. Offer incentives for outstanding performance, such as gift cards, paid time off, or cash bonuses. This tangibly rewards hard work. Offer a referral bonus to encourage employees to refer candidates for vacant positions. Give out company “swag” like t-shirts or hats to make employees feel part of the team.
Prioritize Employee Growth and Development
Provide avenues for career advancement and skill development, such as mentorship programs, free or low-cost training or workshops, and cross-training opportunities. Employees value companies that invest in their professional growth, increasing their likelihood of staying.
By focusing on these key areas, small businesses can create a compelling value proposition that attracts top talent and cultivates a loyal, engaged workforce, ultimately driving business success. Consistency is key, so ensure whatever activities you do or perks you offer are sustainable over time and relevant to employees.
Renee Boyda is a human resources consultant with Legacy Bowes. Renee is a CPHR Candidate, received her BA in Sociology from the University of Manitoba, and received both Human Resource Management and Management Development Certificates with Honours from Red River College. Renee is focused on building HR structures and processes to create consistency and fairness in workplaces across Canada. Renee is a proud Metis, with over 12 years of human resource experience in both union and non-union environments.
