Talent Search
 By B.J. Addington

Your small business may not be able to offer employees big bucks like the giant companies. But you can offer what many American workers are looking for in a job.

Salary.com, a leading provider of on-demand compensation management solutions, recently released its Working for a Small Business Survey. And the results show there’s more to attracting and retaining top-notch employees than just a glamorous company name and fat paycheck.

Survey respondents claim that small businesses land on top when it comes to most non-compensatory factors.

Despite a perceived gap in pay between small and large companies, employees listed numerous reasons they remain at small businesses.

• Work/life balance—46.2 percent

• Loyalty—34.8 percent

• Their boss—31.4 percent

• Relationships with co-workers—29.5 percent

“While smaller companies may not have the financial resources of their larger counterparts, our research indicates that there are a number of non-compensatory factors through which small companies can compete for talent,” says Chris Fusco, vice president of compensation and data operations with Salary.com. “Work/life balance, simpler hierarchies leading to fewer political battles and strong bonds between employer and employee are all important factors in attracting and retaining qualified employees.”

What does this mean for you? Simply put, for many people out there, money isn’t the bottom line when deciding where to work.

“Our compensation data validates that small companies do typically pay less than larger ones,” states Jeffrey Blue, director of marketing for Salary.com. “What’s important for small-company owners and executives to stress in their recruiting efforts are the numerous advantages of working for a small company. This survey indicates that those advantages have meaningful value to employees.”

Plenty of top talent will gladly join your firm instead of an ego-stroking big name if you show off why it’s great to work for a small company. So, the next time you’re posting a job opening or interviewing a potential employee, be sure to tout these advantages of being a big fish in a little pond.

Variety
In a small business, job roles are usually less rigidly defined than in a larger company. In the course of a work day, employees may wear a number of different hats. Workers get the opportunity to hone an assortment of skills. This diversity helps reduce boredom and burnout.

Flexibility
Without the bureaucratic red tape of a big corporation, small firms are able to offer more flexible schedules to their employees. That means you can propose perks such as flex hours, job sharing, telecommuting or compressed work weeks. Workers—who are often strapped with caring for children or elders—will thank you with decreased absenteeism and increased job satisfaction.

Opportunity
It’s easier to get noticed—and rewarded—for a job well done when you work for a small business. Workers are encouraged to take initiative and feel like they are making a real contribution to the bottom line. They can see their ideas implemented—and get the credit for them. And the promotion path is usually less firm and political than in a big company. You can reward employees for their merits and ambition, rather than where they fall on the food chain.

Camaraderie
Many small companies are tight knit and operate in a family atmosphere. Employees can expect to find a place where the emphasis is on the people who keep the business going day to day. Employees are not just another number. Their concerns, situations and needs are important.

Accessibility
More than likely, your chain of command is pretty short. In fact, you’re probably right there with your employees in the thick of it everyday. You’re accessible to them—not just a name on the large imposing door on the penthouse floor. Employees like the opportunity to work side by side with the boss and present their ideas—and have those ideas heard. It gives them a vested interest in your company.



(Posted July 2007)

>>Back to Owner's Manual