Recruitment will not be the same
We are now in an employee’s market, rather than during economic downturns when it’s often an employer’s market. Small business owners have to concentrate on two fronts:
First, they must ensure they have a culture and environment that prevents their current employees, whom they have trained and invested in, from being enticed to go somewhere else.
Employees leaving your business is costly. Let me share few examples:
- Entry-level employee: between 30% and 50%. On an annual salary of $25,000, it could cost you $12,500
- Mid-level employees: upwards of 150%. On an annual salary of $55,000, it could cost you $82,500
- High-level or highly: specialized employees. Approximately 400% based on an annual salary of $100,000, it could cost you $400,000
Second, after stabilizing your workforce through excellent retention, you must prove to the marketplace that you’re an “employer of choice.” That means you’re a company that potential employees want to continue their career with by accepting the company’s offer of employment.
You’re bigger than you think
The key for small businesses who want to to entice more prospective employees in 2016 is to not restrict themselves to small business thinking. Employees now are seeking more than just a paycheck. They want flexibility, benefits and a culture that respects the employee base.
Small businesses will need to offer more than just a job; they need to offer a career. They need to embrace flexible working arrangements, work from home arrangements and provide a benefits package that will sway a prospective talented employee to choose them. In a nutshell, small businesses need to offer Fortune 500 type of benefits and thinking while still being located on Bay Street, Toronto.
Retention is a good investment.
Build On Employee Engagement
High levels of employee engagement can boost your revenue growth by up to two and a half times. It’s no wonder organizations are focusing on improving their employee engagement to drive better performance. Deloitte Global Human Capital Trends research shows that 78% of business leaders’ rate retention and engagement urgent or important. The issue of “engaging people well” is becoming one of the biggest competitive differentiators in business. Employees who are engaged feel involved, committed, passionate and empowered. Employee engagement is an important predictor of organizational performance and success. Engaged employees drive the innovation, growth and revenue that growing midsized companies need to thrive.
The influx of millennials is forcing business owners to re-think the concept of engagement. According to PwC research, Millennials will account for nearly half the global workforce by 2020. They already constitute a majority in some companies. Organizations that want to attract and retain fresh talent will need to recruit Millennials and ensure that their journey through onboarding is supported through mobile and social platforms.
Millennials want to feel safe and comfortable. It makes them just more productive! They are more willing to step outside their comfort zone. When that risk pays off, they’ll feel a sense of achievement and you’ll see an increase in engagement. You need to set the tone to enable your Millennials to learn and give them opportunities to develop.
Your people are the ingredient that will set your business apart. Are you ready?