Benefits Needed for Retention and Hiring in Small Business
Benefits Needed for Retention and Hiring in Small Business
In today's job market, offering attractive employee benefits has become more important than ever for small businesses. While salary is certainly a factor, it is often not enough to retain top talent. In this article, we will explore six benefits that small businesses should consider offering to attract and retain employees.
1. Offer Highest Salary in Industry (Responsibly, but not everyone can do this)
While it's true that money isn't everything, offering competitive compensation is important in attracting top talent. If your business is able to offer the highest salary in your industry, this can be a major selling point for potential employees. This means you might not have to focus on other benefits as much
2. Great Health Benefits (No Co-pay, for example)
Health benefits are a key factor in employee satisfaction. Offering great health benefits with little to no co-pay can make your business stand out. It can be a significant expense for small businesses, but it can also be a valuable investment in your employees.
3. Lots of PTO (4 Weeks +)
Paid time off (PTO) is a highly valued benefit for employees, especially younger candidates and employees. Offering four weeks or more of PTO can be a great incentive for employees to stay with your company. Additionally, it can help with employee burnout and improve overall morale.
4. Hybrid Location (1-2 Days a Week from Home)
The pandemic has changed the way many of us work, and a hybrid work model has become increasingly popular. Allowing employees to work from home one or two days a week can be a great way to offer flexibility and work-life balance.
5. Flexible Time (Can Come in 10-6, 9-5, 7-3, for Example)
Offering flexible work hours can be a game-changer for employees. Not everyone works best on a traditional 9-5 schedule, and offering flexibility can help employees better balance their work and personal lives.
6. 5 Hours a Week of Leadership/Skills Development
Investing in your employees' professional development can be incredibly valuable. Offering five hours a week of leadership or skills development can help your employees grow in their careers, while also demonstrating your commitment to their success.
In conclusion, offering competitive benefits is crucial for small businesses to attract and retain top talent. Consider implementing one or more of these benefits to create a more attractive workplace for your employees. By investing in your employees, you can create a more productive and loyal workforce.
The 4-Day Workweek: Should You Try?
The 4-Day Workweek: Should You Try?
Are you worried that your employees look anxious and tired? Are you concerned about losing your best employees to higher paying jobs at big companies?
Little Sales Pitch Before You Keep Reading: Looking to consult with someone about your HR needs? We can help with any of your small business needs: HR for Small Businesses
We consult with our clients constantly about the "Hiring and Retention Levers" that small businesses can pull to reel in the best talent for their organization. We suggest levers such as more PTO, schedule flexibility, personalized anniversary gifts, and more to set you apart as an employer. However, there is a new concept that is turning a lot of heads: The 4-Day Work Week.
Before you stop reading this email because a 4-day work week is impossible, I suggest you look at this case study in the UK. Companies are testing out this 32 hour work week hoping to reduce burnout, retain staff and recruit excellent employees. You may call 32 hours part-time, but many companies are calling this full-time and providing regular benefits and PTO. Let's break down the positives and the negatives:
Positives due to case studies mostly done outside of the US
Work satisfaction is up
Work happiness is up
The most shocking: Job productivity is actually up
Without surprise - Retention is up
Negatives:
We don’t know the long-term effect on productivity because the studies are too new
Employees might also be more stressed to get their work done in a 32-hour week
What do I think:
It really depends on your company and what you are hearing from your employees.
A good way to see if it might work for you is to do a test period. Tell your employees that from June to August, everyone will be expected to get their full jobs done, but that the office will close at noon on Fridays. Talk with your leaders first about how this can be accomplished. This will not work for all companies, but it might work for yours.
You will be surprised how excited your employees are with just the 4 hours off. You may even be surprised by how much productivity increases. You also may see less people giving their notice to quit.
I know it is one of the stranger concepts we have suggested, but you won’t know until you try. Sometimes you have to be different to set yourself apart.
Check out recent articles on the study and the articles that are being written right now around this concept:
HR Strategy: The 3 Employee Lists
HR Strategy of the Week: The 3 Employee Lists
Just to preface: I get the opportunity to speak to CEOs, COOs, and Managers all the time about their people because of my HR background. I talk about compensation, benefits, and other important HR issues. However, every time I include "The 3 Employee Lists" in one of my talks, it gets everyone thinking and talking. If you really think through these 3 Lists, I think you can dramatically change your organization. So think through these when it comes to your organization:
List A - The "OH NO! What Happened?" Group: This is what you say when you get a resignation letter from one of your vital team members. If someone is on this list, and they resign, you immediately leave the office and think about closing the company (not really, but kind of). These people embody the values, culture and “spirit” of your company. They “Get it”. They could be the admin or the COO - but they mean a ton to you. When you read this, your mind will go to the people who are so important in you business!
List C - The "WOO HOO Finally" Group: This is what you say when you get a resignation letter from someone on this list. In a kind way... you are very excited. You wanted to let them go and now they are doing it for you. They might be unproductive, or they might produce a lot, but have a terrible attitude that doesn’t work in your company. Everyone in the business talks about how they just don’t fit or they have to work extra to make up for their deficits.
List B - The "Adequate Work for Adequate Pay" Group: This is where most of the people in your organization should live. These people show up to work on time, do quality work, and you pay them fairly for their work. You do not expect them to wow you, but they are good employees. Again, this is where most of the people in your organization live!
Do Something about List A and List C!
For the people you have on your "List C", you have two options:
Develop - invest time and energy into training them to become better in whatever they lack if you think it can be corrected.
Let them go! - this sounds harsh, but these people negatively affect the business or firm. If you choose to keep them on, it will set a terrible example for the rest of your staff
For the people you have on your "List A", you have one option:
Create Individual Retention Plans - Be students of your people and find out anything you can do to make them stay! Have conversations with them often. Make them a priority and spend time making sure they are happy! Might seem like a waste of time, but shame on us if they hand us a resignation letter and we did not do everything possible to keep them!
If you want more detail, here is myself and Matt Filer talking through it on our podcast: HR Ins and Outs for Small Business Podcast
Sales Pitch of the Day:
The HR Audit is a tool designed for small businesses in any industry to identify the strengths and weaknesses of their HR function.
We evaluate the 14 areas of HR from compliance to retention. We develop an HR strategy to make your employees proud of where they work. Watch the video to the right for more information or visit our HR Audit Page on our website.