In tight labor markets, it can be difficult to hire the high-quality employees your business needs for continued growth and success. At the same time, your business needs to retain the good employees that you currently have so they don’t leave for greener pastures.
What are some things that you can do to entice outsiders to come work for you while maintaining a culture that fosters loyalty among your employees in a tight labor market? Here are a few suggestions.
1. Offer Good Wages and Benefits
Money and benefits are two of the most obvious ways to attract new talent and retain good talent. It’s important that you work with your Advisor Team to ensure that the compensation packages that you are offering your employees are comparable and ideally better than anything your competitors can offer.
However, this can be a challenge for smaller businesses. Some smaller businesses simply may not have the means to offer a standout compensation package to employees. Fortunately, younger generations of workers have begun to shift their view of what matters to them in a job or career. Elements like work–life balance and working for companies whose values align with theirs are significant to younger workers—but not to the point where they’ll accept poor compensation to get it.
That’s why it’s crucial to stay aware of what fair compensation looks like in your industry and where your company does business. While you can use fringe benefits like office snacks and air hockey tables as perks, they simply will not match up to things like a good salary or a living wage, health insurance, and retirement contribution opportunities.
2. Establish and Live Your Values
A key differentiator for many companies is how they present and live their values. Authenticity, flexibility, and a path to career development are some of the more vital aspects that employees look for when they consider working for a company.
To fulfill these needs among employees, there are many strategies that you can pursue. For example, to show your authenticity, your company might consider codifying what its values are and then constantly act on those values in the community. In short, don’t just talk the talk; make sure your company is walking the walk.
In terms of flexibility, business owners know better than anyone just how challenging it can be to navigate new and emerging expectations among employees. The COVID pandemic turned many businesses upside down in terms of work–life balance for employees. With many businesses working in mandated remote environments, many employees began to expect that companies respect their work–life balance, especially when those employees had proven that they could work just as efficiently away from an office as they could in an office.
But even if something as drastic as remote work isn’t a possibility for your company to offer in pursuit of work–life balance, finding other ways to instill flexibility in your business could be a good way to attract new employees and encourage current employees to stay.
For instance, it would be impossible for you to offer remote work if you’re running a restaurant. However, there may be other things that you can offer to your employees in such a situation that fit within your business model, position you to pursue your business goals, and still allow employees to enjoy a work–life balance that suits them. Your Advisor Team may be able to identify strategies that help you to establish and live your values every day.
3. Create Paths for Acknowledgment and Development
Acknowledgment and development can be a powerful combination in tandem with compensation and living your company’s values.
Acknowledgment of good performance can come in many varieties. From cash bonuses to employee-of-the-month awards, ensuring that your current employees know that you see all of their hard work every day can be a strong motivator and way to build trust and loyalty among your employees. Likewise, employees who feel valued are more likely to evangelize for your company, which could open you up to even more talent that you may not have been able to uncover otherwise.
To entice ambitious employees and prospects, you may consider creating a career development path that not only acknowledges their good work but also gives those employees a chance to do even more for your company. This can have a long-term benefit of helping you identify and lock down key employees or even next-level managers. If you can begin to identify and develop key employees and next-level managers internally, it can strengthen your company’s potential to perform well in future tight labor markets. After all, if you invest the time and resources in these types of employees, they may be more likely to stick with or join your company.
We strive to help business owners identify and prioritize their objectives with respect to their businesses, their employees, and their families. If you have questions on this topic, we can help with more information or a referral to another experienced professional.