6 Attraction & Retention Tips for Small Businesses

Attraction and Retention Tips for Small Businesses

Employers of all sizes are currently facing attraction and retention challenges. Successful efforts to win over workers can require a significant amount of time and carry high costs. 

Unfortunately, small businesses often don’t have excess resources to invest in attraction and retention efforts in today’s worker-friendly labor market. Failing to attract talent or losing existing employees is particularly costly for small businesses. 

Small business owners talking and discussing the performance of their coffee shop. Black female entrepreneurs in a partnership collaborating and planning growth together inside their cafe or shop.

Along with the costs associated with recruiting, hiring and training, attraction and retention struggles can significantly impact workplace operations and culture, especially in a smaller environment. For these reasons, small businesses cannot afford to ignore their attraction and retention efforts.

The following are some attraction and retention tips for small businesses:

1. Select the right benefits.

Health insurance is valued highly by workers. Simply offering health insurance can provide small businesses with a competitive edge against those that don’t. However, health insurance is just one component to consider as part of a benefits package; small businesses should tailor their benefits offerings to meet the specific demands of current and prospective employees. The best benefits vary for each organization, but they can be used to attract and retain employees.

2. Revamp recruiting, hiring and onboarding practices.

Small businesses often have limited resources for recruiting, hiring and onboarding practices, so it’s important to be as efficient as possible. 

HR working through processes.

Leveraging cost-effective technology, such as applicant tracking systems and digital tools, can help small businesses improve these practices

In turn, employers’ costs may be reduced, and they can focus on finding new employees rather than dealing with time-consuming and tedious tasks.

3. Expand recruitment reach.

If an employer isn’t receiving the number of quality candidates they desire, it’s worth strategizing to grow their talent pool.

Expanding an organization’s online presence is a good start. This may include creating and maintaining multiple online profiles, posting content regularly and informing prospective workers of job opportunities.

Small business owner revamping online hiring practices.

4. Focus on developing employees.

Working together.

Attraction and retention challenges aren’t always about bringing enough employees through the doors; today, many small businesses face skills gaps. While a solution to this may be to recruit specific skills to close these gaps, this overlooks existing employees.

Small businesses should consider how they can bridge skills gaps in-house. Some strategies may include providing career pathing plans, creating mentorship programs, offering microlearning workshops to focus on specific skills, or paying for employees to attain certifications or further their education outside of the workplace.

5. Offer a flexible work environment.

Throughout the COVID-19 pandemic, many employers offered remote work opportunities.

Continuing to offer flexible work arrangements, such as work-from-home arrangements and hybrid or flexible schedules, can help small businesses maintain a competitive edge over employers who don’t offer such flexibility.

6. Creating a strong workplace culture.

Small businesses should focus on fostering a desirable workplace. A healthy company culture can help retain employees and, in turn, create an environment that’s attractive to applicants. Many small businesses are focusing on creating a strong workplace culture by training managers to identify employee burnout, designate fair workloads and support workers’ needs.

Like many organizations, small businesses face several challenges with attracting and retaining the employees they need. Fortunately, small businesses can leverage these strategies to help them compete in today’s talent market.

Reach out to GBS Benefits, Inc. for customized workplace solutions.

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