According to Statistics Canada, in 2021, 98.1% of all employer businesses in Canada were small businesses. In 2021, they employed 63.8% of the Canadian workforce which represents 10.3 million people.
Quality talent is the bread and butter of any thriving business. You might’ve heard the saying “it takes a village”. This is especially true for small businesses where every effort matters toward its growth and success.
However, more than one-third of Canadian companies (35%) say employee turnover has increased compared to last year. Employee turnover costs companies an average of over $41,000 each year (including the cost to rehire, lost productivity and more).
For a small business, those costs cut hugely into profits and disrupt the workflow and efficiency of their operations.
So how, then, can small businesses attract, hire and retain top talent? Well, keep reading this blog post to find out.
At REM Web Solutions, we thrive on helping our customers grow their businesses in tangible and impactful ways. But we couldn’t do any of it without the highly talented, hardworking and amazing employees who work here.
Some of our employees have been with us for 15+ years. This speaks volumes of our commitment to a strong workplace culture and employee recognition. If you’d like to work for us, send us your resume here and tell us more about yourself and your interests.
On the flip side, if you’re a potential client needing support with your digital marketing efforts or website design and development, don’t hesitate to reach out. Our skilled team is always here to support you in navigating the digital landscape.
The Significance of Top Talent in Small Businesses
Securing top talent is absolutely critical for the success of small businesses. These individuals bring a unique set of skills, expertise, and creativity that can drive a small business to great success.
Top talent possesses the capability to not only fulfill their job roles efficiently but also adapt and contribute beyond their immediate responsibilities. Their adaptability, problem-solving abilities, and dedication can be a game-changer for small businesses facing dynamic challenges.
Skilled individuals have a tangible impact on a small business's productivity and growth. Their work ethic, innovative thinking, and commitment translate into increased efficiency, revenue generation, and market competitiveness.
Small Business Hiring Strategies
Below are some strategies to keep in mind when starting the hiring process:
- Employee Value Proposition (EVP): these are the distinctive attributes and advantages an employer offers to potential employees, and for small businesses, crafting a compelling EVP entails effectively articulating their distinct organizational culture, perks, and pathways for personal and professional development, serving as a powerful magnet for top talent.
- Craft Compelling Job Listings: Craft job postings that showcase qualifications and embody your company culture. Tips: Be engaging, highlight excitement, and resonate with candidates.
- Leverage Social Media and Online Platforms: Leverage social media (LinkedIn, Twitter) and job boards to widen talent reach. Optimize posts, engage with candidates and boost job visibility.
Why Networking and Referrals Make a Big Impact
Personal and professional networks are invaluable for small businesses in finding top talent, as they often yield candidates who align with the company's culture and values. Employee referrals do a great job of harnessing the trusted connections of current employees to identify individuals who not only possess the required skills but also seamlessly integrate into the existing workplace culture.
Recruitment in Small Businesses
Recruitment Process for Small Businesses
Screen Resumes: The initial phase of recruitment centers on evaluating resumes and applications, where small businesses should prioritize criteria like relevant skills, experience, and cultural alignment. To effectively screen resumes, use an ATS, establish clear job-specific criteria, and focus on quantifiable achievements to shortlist candidates who align best with the company's needs and culture.
Perform Interviews and Assessments: Small businesses employ various interview formats (phone, video, in-person), but structured interviews and assessments are key for unbiased evaluations. For example, ask situational questions like "Can you describe a time when you resolved a challenging team conflict?" to gauge problem-solving and teamwork skills, ensuring a thorough assessment of candidates.
Perform Reference Checks: Reference checks are vital to validate qualifications, work history, and character. Ensure privacy and legality by seeking consent and focusing on job-related inquiries, preserving candidate trust and compliance.
Why Your Hiring Process Should Be Streamlined and Efficient
A well-organized recruitment process is of most importance for small businesses, optimizing resource use and enhancing the candidate journey. Streamlined procedures, such as employing ATS, expedite hiring, minimize administrative burdens, and elevate overall talent acquisition efficiency, ensuring top talent doesn't slip through the cracks.
Employee Retention Strategies for Small Businesses
Congratulations! You’ve hired an incredible employee and are excited for them to start working. Now, how do you keep them motivated and engaged?
Here’s how:
Create a Positive Work Culture: Creating a positive work culture is important for retaining top talent in small businesses, as it creates an environment where employees feel valued and connected. Values-based culture, inclusivity through diverse hiring, and engagement via team-building events and recognition programs not only enhance job satisfaction but also bolster employee loyalty and commitment, ultimately reducing turnover and securing top talent for the long term.
Offer Competitive Compensation and Benefits: Competitive compensation is pivotal in retaining top talent, necessitating fair, market-driven salaries. Offering comprehensive benefits like healthcare, retirement plans, and unique perks not only attracts but also differentiates your small business.
Provide Opportunities for Professional Development: Offering growth through career paths, mentorship, and training programs is invaluable. Small businesses can empower employees to advance by offering tuition assistance or certifications, enhancing skill development, job satisfaction, and long-term retention.
Open Communication and Feedback
Building a culture of open communication and feedback is very important for small businesses. Regular check-ins and performance reviews, coupled with feedback mechanisms, create an environment where employees feel heard and valued. Creating a safe space for employees to express ideas, concerns, and career aspirations promotes trust and loyalty.
Transparent communication not only enhances employee morale but also allows small businesses to address issues promptly, leading to a more engaged and committed workforce.
Challenges in Hiring and Retaining Talent
There are many challenges in hiring and retaining talent.
Here are some of the most common ones:
Limited Resources: Small businesses, with limited budgets and HR resources, face hurdles in competing with larger companies on compensation and recruitment marketing. Providing competitive salaries and benefits is a challenge due to resource constraints.
Competition with Larger Companies: Small businesses face intense competition for top talent, particularly against large, established firms. Limited brand recognition and fewer resources involve having innovative recruitment strategies and an emphasis on unique selling points to attract and retain candidates.
Managing Turnover: Turnover is a big issue in small businesses because of limited growth and retention strategies. Frequent turnover is costly and disrupts productivity and continuity.
Here are some solutions to combat these issues.
Limited Resources
Create compensation strategies beyond salary, such as flexible work arrangements or performance bonuses
Leverage employee referral programs to tap into existing networks
Invest in cost-effective recruitment technologies like applicant tracking systems (ATS) to streamline processes
Competition with Larger Companies
- Emphasize your unique strengths, such as a close-knit work environment or faster career progression
- Build a strong employer brand by showcasing company culture through social media and employee testimonials
- Partner with local colleges or universities for talent pipelines
Managing Turnover
- Create clear career development paths within the organization
- Implement regular employee feedback opportunities to address concerns promptly
- Invest in training and upskilling programs to retain employees by helping them grow within the company
At REM Web Solutions, we thrive on helping our customers grow their businesses in tangible and impactful ways. But we couldn’t do any of it without the highly talented, hardworking and amazing employees who work here.
Some of our employees have been with us for 15+ years. This speaks volumes of our commitment to a strong workplace culture and employee recognition. If you’d like to work for us, send us your resume here and tell us more about yourself and your interests.
On the flip side, if you’re a potential client needing support with your digital marketing efforts or website design and development, don’t hesitate to reach out. Our skilled team is always here to support you in navigating the digital landscape.
