Tips for attracting and retaining employees at your small business

Finding the right people has always been difficult. But labour shortages have been a major obstacle in the past 12 months, with 61% of Canadian entrepreneurs saying hiring and retaining employees is a challenge, compared to 40% five years ago according to a BDC study. And the impact can be devastating. The Canadian Federation of Independent Business found that 53% of small business owners report that labour shortages are hindering their business growth.  

Attracting top talent to your organization isn’t about waiting around to see who knocks on your door. And you may not have the time and resources to constantly source and interview new applicants the way larger companies have dedicated talent acquisition teams. It can be more effective to focus your efforts on retention, but ever-changing employee expectations can make it difficult to nail down what will encourage your people to stay. Pulse of Talent research found that 69% of employees are labeled as flight risks and are actively looking or open to leaving their current role.   

Small businesses can overcome this endless turnover and hiring cycle by focusing on their employee experience to compete with larger organizations. Discover our tips for how to retain employees by creating a differentiated employee value proposition that sets your business apart. 

Provide more flexibility at work  

With more organizations calling for returns to office, small businesses have a big opportunity to offer more choice and freedom as part of your employee experience. Remote work is a competitive benefit that some people will favour over a pay raise. Business Insider found that some talent views flexible work as equivalent to an 8% raise.  

Even if your business can only offer employees the option to work from home part of the time, offering hybrid work flexibility can give your business an edge over jobs that require in-person full time.  

Build out your benefits package 

Your employee’s total compensation package includes more than just pay. Consider all the elements of your employee benefits package, from health to dental and even mental health support. 

Across Canada, each province has its own labour standards for paid vacation, but Canadian employees are all entitled to receive at least two weeks of vacation after their first year of work. Offering an extra week than the minimum or additional time in the form of Wellness Days could help small businesses be a competitive employer.  

Know the value of employee recognition 

Your people like to feel appreciated. One of the special parts of working at a small business is being part of a closer team. Outside of formal performance reviews, make it a regular habit to let your employees know how important they are to you. Employee recognition can have an impact on voluntary turnover, team engagement, individual performance, customer service and much more. 

Offer training opportunities for career development 

People often wear many hats working at a small business. This variety can be a great way to retain employees by offering the chance to gain exposure to different parts of the business and develop new skills on the job. In fact, 86% of flight-risk respondents said they would consider staying for internal career and development opportunities, according to our Pulse of Talent survey of Canadian workers. 

Training opportunities can come in multiple forms including mentorship, on the job experience, development of in-demand skills, and formal certificates and courses. Ask your employees what types of learning and development opportunities they’d be interested in and promote this benefit during the recruitment process. 

Hire for skills 

You can open up your hiring pool by looking past old school degree requirements and focusing on hiring people with the skills needed to get the job done. When you’re interviewing potential candidates, ask questions based on these skills to test their experience and find the best person for the job. 

How do you hire for skills? Take a look at the key tasks and requirements for your open role and write your job description with a focus on core competencies. For example, include a mix of soft skills including problem solving, interpersonal communication, and customer service with hard skills such as technical programming skills or experience with specific tools.   

Create structure in your hiring process 

Hiring can be a time-consuming process. Structuring your recruitment efforts can help you focus your time. Make it a goal to review a certain number of resumes each week and create a list of the same questions to ask all candidates applying for a particular role. Once you’ve had an offer accepted, begin onboarding immediately. Self-service tools can help bring candidates up to speed quickly and take administrative work off your plate.  

Don’t forget to humanize your recruitment process. The personal touch is one of the reasons some people like working at a smaller business. Often candidates can feel like an anonymous resume in the recruitment process and may not hear much during the interview cycle. Encourage applicants to ask questions during the interview and provide ways for them to contact you with additional queries after.  

Sell yourself 

More employees care about their employer’s impact on their surrounding community and finding purpose in the work they’re doing. Don’t forget that an About Us page can help to define your brand. Establishing an online presence is an important way to share your story and why you do this work. There could be a dedicated page on your website or the bio section of your social media. It’s important to populate your bio on job platforms such as LinkedIn where potential employees will be scouting your business for employment information.  

Offering good benefits, growth opportunities, and a safe, balanced workplace can help you improve employee retention and establish your business as a great place to work. 

To explore more about how we can help, learn more about Powerpay payroll and HR.