Attracting top talent is arguably the most crucial step in expanding your organization, and it remains a top priority for numerous small business proprietors. A study conducted by The Conference Board revealed that 60% of firms focused on recruiting primarily white-collar workers are struggling to find suitable candidates.
“There is a fierce competition for talent right now; hiring skilled individuals is far more challenging than it was five years ago,” states Paul McDonald, senior executive director at Robert Half International, a global staffing agency. He explains that an enhanced job market coupled with a transition to a service-oriented economy that values elite employees complicates the recruitment process for businesses of various sizes. In sectors like marketing, IT, and specific legal fields, the unemployment rate hovers below 3%, making hiring even tougher.
Small-business leaders often feel daunted by the alluring benefits offered by competitors like Google, Apple, and Facebook—perks that include 24/7 gourmet cafeterias, on-site massages, and generous compensation packages featuring profit-sharing. However, McDonald recommends a more pragmatic approach. “Sure, those attractive benefits are appealing, and they will entice a certain type of employee,” he says. “But if you run a small business and can’t match their salary offers, shift your focus away from pay and highlight your unique qualities.”
Kim Shepherd, CEO of Decision Toolbox, a national staffing company situated in Irvine, California, argues that fostering employee engagement is a much more effective use of resources than a lavish workplace. A 2020 McKinsey & Co. report indicated that trust in leadership and fair treatment from employers leads to improved work performance more than financial rewards do. Elements such as acknowledgment without monetary compensation, the relationship between employer and employee, and workplace equality contribute to heightened employee satisfaction, although financial stability and job security remain important. “Hire for soft skills and cultivate an environment where people want to be,” Shepherd advises. “Individuals may join a company, but they often leave because of their supervisors. Strive to be a manager who retains talent.”
To attract candidates who can drive your company’s growth, consider the following recommendations:
- Define and enhance your brand. Talented individuals aspire to work for companies like Google simply because it is Google. “Perfect your elevator pitch about what your business does and its core values,” McDonald advises. “Does it convey an appealing workplace?”
- Highlight your social contributions. If philanthropy is integral to your mission, or if your product/service is eco-friendly, weave that message throughout every aspect of your operations, especially in marketing and hiring strategies. This is particularly appealing to younger professionals, according to McDonald.
- Develop a marketing strategy. “Business leaders frequently undervalue media’s influence, particularly in attracting millennials,” McDonald points out. Shepherd suggests involving your strongest marketing experts in crafting job descriptions.
- Create enticing job postings. “Job advertisements should be captivating—don’t make them dull!” Shepherd insists. Highlight what sets your company apart, whether it’s a warm team culture, remarkable flexibility, or the chance to impact the world positively. “Avoid overused jargon like ‘looking for exceptional communication skills,’” she adds. “Capture your company’s essence with vivid language that showcases your workplace culture.”
- Ensure your marketing initiatives stay current (anything over two years old is outdated) and integrate video and social media into your recruitment strategies. Consider producing a “day in the life” video featuring an employee or other creative ways to share your organization’s narrative.
- Be specific in your job postings. If you’re a well-capitalized startup, disclose your funding amounts and sources. If work-life balance is a priority, provide concrete details. Top candidates are weary of vague assurances.
- “Widen your search,” McDonald suggests. Encourage your team to recruit their friends and leverage your network for recommendations regarding top-tier candidates.
- Encourage prospective hires to interview you. “I desire individuals who are just as discerning about their workplace as I am about selecting employees,” Shepherd remarks.
Nancy Hua
CEO
Company: Apptimize, a mobile A/B testing software company located in Mountain View, California
Strategies: Seek outstanding professionals in the field, invest time in understanding their aspirations, and tailor the company’s offerings to match each recruit’s individual preferences.
Outcomes: Apptimize has successfully attracted engineers from Google and Pinterest. Nine months post-launch, it secured clients from leading applications across all major categories.
As a small firm, we cannot compete with the compensation packages offered by larger companies in Silicon Valley. Nevertheless, we’ve enticed talent away from Google, where a programmer can command approximately $100,000 annually, even though our salary offer is significantly lower for comparable roles. Some candidates express they’d join us even if the pay was nonexistent. I’ve learned how to discover what genuinely matters to each person.
I focus on identifying who I want to hire. To find these people, I ask my contacts for names of exceptionally smart individuals, and over time, certain names consistently emerge. Those becomes my recruitment targets. Even if they aren’t currently job-hunting, I maintain communication with them through periodic messages and by connecting on Facebook, where I share company updates. They’re also invited to our team outings, which gives them a taste of the familial atmosphere that they may lack in their current jobs.
I take the time to genuinely get to know individuals. I assess their life stage and interests. My responsibility is to showcase the appeal of our company, the excellence of our technology, and what their experience at Apptimize might be like. Sometimes, a month or two after my initial outreach, I can provide new insights or updates.
Because I invest time in understanding them, I can recognize their strengths and articulate how those abilities would contribute to their success at our organization. For instance, if I notice they excel in mathematics, I can illustrate how they can apply their skills with us. Alternatively, I might discern what they find unsatisfactory in their current positions. Many individuals aren’t fully aware of their dissatisfaction until guided to reflect on their circumstances.
Heidi Lamar
Owner
Company: Spa Lamar, a day spa located in Scottsdale, Arizona
Strategies: Recruit based on cultural fit; provide employee empowerment.
Results: Within the first decade, Lamar expanded revenue to $1.5 million and grew its employee count from 25 to 42, many of whom transitioned from leading corporate rivals.
Our spa is situated in a city with the highest number of spas per capita in the nation. Many of our upscale competitors are affiliated with large hotel chains that offer incredible benefits that I cannot replicate. Yet, I manage to attract and maintain a skilled core team because I foster a familial environment.
This starts with the job descriptions we post. Each ad includes the line: “Dictators, divas, and clock-watchers need not apply.” Those familiar with the spa industry understand precisely what that implies, prompting those seeking a different experience to self-select and apply.
The image we project aligns with this ethos. The common expectation in spas is that front desk staff embody a certain ideal appearance, often lacking genuine connection. I prefer to hire authentic individuals—those who are warm, friendly, and prioritize customer care at all costs. They reflect the diverse backgrounds and appearances of our clientele.
Our organizational principles are displayed throughout our facility, and we earnestly adhere to them. These principles assert that our profitability hinges on content employees and satisfied customers. Moreover, we emphasize that if anyone overhears a colleague expressing negativity, we pause to encourage them to share three positive aspects or discuss how to transform the negative into a constructive dialogue.
I quickly respond to proposed changes. During the 2008 economic downturn, I solicited ideas from the team on how to navigate the revenue slump. The staff suggested a company-wide pay reduction in lieu of layoffs alongside strategies to cut costs on vendors and utilities. This approach yielded success; we weathered the storm and continued our growth.
Our positive culture reflects positively on our business. The familial environment extends to how clients experience our services. Occasionally, individuals might leave for larger companies, but they often return, citing: “The perks were nice, but it just didn’t feel like home.”
Jeff Oddo
President
Company: City Wide Maintenance, a building maintenance franchise based in Kansas City
Strategies: Focus on personality alignment that fosters positivity and dynamic leadership, while committing to mentorship and employee training.
Outcomes: Under Oddo’s leadership, the company escalated its sales from $3 million to nearly $400 million by 2020.
When I assumed control of the family business in 1996, it became clear that people distinguish one company from another more than products or services do. My goal became to hire top-caliber professionals in our field. However, like many businesses, that task has become progressively difficult. Moreover, we operate in a service industry that lacks glitz. We can’t dangle stock options; therefore, we must highlight what makes us stand out.
This begins with selecting the right managers—people naturally prefer working with those they like. We seek to identify charismatic individuals. When selecting franchisees, we require them to complete a personality assessment to gauge cultural compatibility with our firm. During interviews across all levels, we dedicate ample time discussing what uniquely positions us in the marketplace. We emphasize our dedication to service through charitable efforts and volunteering, leadership development through classes and mentorship, and our lower bureaucracy compared to larger firms. All these principles are consistently reflected in our marketing and social media strategies. It’s often surprising how many candidates express admiration for our ethos.
We also invest heavily in peer recruiting initiatives. Every employee qualifies for referral bonuses, and they engage in our “I’m impressed” campaign. Each team member receives a stack of cards featuring the phrase “I’m impressed” alongside our company information. When our employees interact with potential candidates, whether at lunch or church, they can hand over these cards to initiate the recruitment process. Candidates referred this way have a clearer understanding of our company than those who respond to advertisements, as employees only recommend those they believe would be a good fit. This creates a strong grassroots effort perpetually aimed at securing the right hires; it’s not merely a casual endeavor.
