How can small businesses compete in a labour market where so many sectors are struggling to recruit staff? Some large employers are tackling the crisis by throwing money at it, but at small firms spare cash is in short supply.
Still, small businesses do have certain advantages when it comes to recruitment and retention. Firstly, small can be beautiful: people, especially younger generations, increasingly want meaningful roles. It is much easier for small businesses to ensure all staff feel part of the company, with an important part to play, than for larger ones, where employees often feel like tiny cogs. And secondly, smaller employers have much more opportunity to be flexible and nimble.
The key for small firms is to play to these strengths. Can you use your flexibility to streamline recruitment processes so that people are interviewed and offered jobs quickly? Can you offer more flexible types of contract – part-time working, for example, or job shares? And, importantly, can you be flexible on how and where people work? Employees are increasingly keen to work more from home and to arrange their hours to suit them. This may be easier in smaller businesses that don’t have to manage a very large workforce.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Be imaginative about how you recruit. Traditional advertising can still work, but consider other channels, such as social media. Build links with local schools and colleges, as well as the government’s employment services. Drive word-of-mouth recruitment too. Can you get your staff involved in finding new candidates?
Casting the net more widely may also help. Focus on the personal strengths you’re looking for from employees, rather than their qualifications or experience. Technical knowledge, after all, can be taught. This might help you access a broader range of candidates – staff returning to the workplace after a period of caring, say, or people with disabilities, ex-offenders or refugees.
Your firm’s culture is also vital. Can you offer valuable learning and development opportunities, as well as career development options? Do staff feel their wellbeing is a priority? Is your workplace diverse and inclusive? Don’t answer these questions yourself: staff surveys and independent audits can be an excellent way to find out how people feel about working for you. Then you can make positive changes if required.
Getting this right means you’ll find it easier to retain staff, while happy employees can become ambassadors for your company. They may play that role informally, talking about your business as a good place to work, but also in more formal ways; for instance, getting good ratings on the growing number of websites where staff rank their workplaces can be a useful recruitment tool.
As for pay and benefits, be as competitive as your finances allow – and understand exactly what rivals are paying for staff you might recruit. If you can match that, great, but don’t be afraid to sell the other attractions of working for your business, which may be more important to many candidates. And if you’re struggling with headline rates of pay, there may be other benefits you can explore: everything from discount schemes with local retailers to more generous holiday terms, all of which might help sweeten the deal.
-
How to achieve a secure retirement, as more retirees admit to struggling with debtTwenty-six percent of retirees now have unsecured debt – a sharp rise compared to two years ago – with many underestimating how much a typical retirement costs
-
The key October self-assessment tax return deadlines to remember so you can avoid a shock billThere are two important dates for self-assessment taxpayers to remember in October
-
'Ride the recovery in emerging markets': Gustavo Medeiros of Ashmore Group tells MoneyWeekInterview What's the outlook for emerging markets? Gustavo Medeiros, head of research at Ashmore Group, gives his analysis and reviews progress in developing economies
-
'The City's big bet on green finance fails to pay out'Opinion Insurers and banks are backing away from “green finance”, and there is not much sign of the green boom we were promised. That’s a problem for the City
-
Why is English football thriving – and can it last?What has gone so right for English football? The national team has found its feet; the Premier League is swimming in money and profits are soaring
-
Should you invest in Pakistan – the Vietnam of South Asia?Opinion If Pakistan is now serious about reform, it’s time for investors to buy, says Maryam Cockar
-
'Why you must own gold and Bitcoin'Opinion The world is dedollarising, and gold and Bitcoin are the only alternatives. Buy now, says Dominic Frisby
-
'Britain is on the road to nowhere under Labour'Opinion Britain's economy will shake off its torpor and grow robustly, but not under Keir Starmer's leadership, says Max King
-
What are wealth taxes and would they work in Britain?The Treasury is short of cash and mulling over how it can get its hands on more money to plug the gap. Could wealth taxes do the trick?
-
UK bank stocks are no bargain – here's a safer alternativeOpinion Britain's banking sector faces severe political risks. Switch into this global financials trust instead, says Max King
