3 Ways Small Businesses Can Attract Workers In A Tight Labor Market

By Neil Hare

The number one issue facing small businesses today is no longer inflation, but rather finding and retaining competent, reliable employees. Workers today, especially millennials, are demanding more than a paycheck to take a job, and remote work has allowed many to take jobs all over the country without leaving their couch.

So, with unemployment at 50-year lows, what are some strategies to find the workers your business needs?

To start, the obvious solution should be offering higher wages. While this practice may work, it is unsustainable for many small businesses that run on tight budgets. Mike Zaffaroni, CEO of Liberty Landscape Supply in Jacksonville, Florida, explains how one of his toughest years garnered a 10% increase in revenue, but a 40% increase in payroll expenses. “It is impossible to run a successful business and grow with that equation,” Zaffaroni says.

Zaffaroni is an example of a business owner who now can’t find the necessary workers to fill his needs. This narrative suggests that small businesses like Liberty Landscape need to start looking for more creative solutions.

New ways to attract and retain employees in a tight labor market

1. Rehumanize the application process

If you’ve ever looked for a job, you are familiar with the deflating feeling of sending out hundreds of resumes and receiving not even one response, let alone an interview request or job offer. This happens to everyone, from a recent college grad to a senior executive with 20 years of experience.

In the current hiring environment, small business owners can give themselves an edge by putting extra effort into responding to applicants. Saïd Eastman, CEO of JobsInTheUS.com, a nationwide online jobs board, says there are easy steps to remedy the issues in communication as a part of the online job application process.

“Setting up an automatic email reply to completed applications is a great way to keep job seekers from feeling in the dark,” he says. “Making a phone number or email address readily available to answer questions regarding the application process creates a more human experience.”

Responding to applicants, even to those whom you may not ultimately hire, immediately sets you apart from other potential employers, and demonstrates that you are a company that respects the needs and feelings of its workers. In addition, it shows your existing employees that you are trying to create a company culture where the needs of workers come first and the concern is not solely on the bottom line. This is extremely important to younger workers today.

2. Offer job flexibility

Many small businesses are unwilling to offer remote or even hybrid opportunities to their employees, partially because they don’t trust that the employees will get their work done. For others like retailers and restaurants, remote work isn’t even an option, with or without trust.

It is, however, important to build and display trust with employees to create a healthy business environment. There are a couple of ways for small businesses to show trust and care for employees without conceding full-time remote work.

The first is to offer remote work as an earned benefit. Employees that demonstrate dependability can be granted the ability to do some remote work. This strategy can promote a positive sentiment among employees. Another solution is to offer flexibility and allow employees to have some leeway with their hours in the office. An example of this would be letting employees pick up their kids from school. Flexibility means going beyond a strict nine-to-five to show employees that the workplace can be a supportive environment.

Both of these strategies demonstrate to employees the benefits of working at a small business.

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3. Build a local brand

How can brand building become a hiring solution? According to Eastman, being local is a strength to be touted. He explains, “Small businesses have the advantage of being part of a community, knowing their employees and their families, and offering flexibility many larger companies can’t. They have to tell this story.”

The popular narrative in the media is of employees leaving small businesses for higher wages and better benefits. However, the story that is not being told is of the loyal employee who chooses to stay at a small business because of the benefits that come with having personal connections and a comfortable work environment. Small businesses need to market themselves as having qualities larger employers cannot compete with.

First, find ways for your business and your employees to participate in community organizations, like chambers of commerce and non-profits. These civic organizations offer networking, professional development, and charitable activities to give back. This is especially important in the post-Covid environment when in-person events are coming back with renewed vigor. By providing these opportunities, you can differentiate your business for workers as something more than just a paycheck, but as an upstanding part of the community.

Second, while websites are often thought of as a mechanism for reaching a wider audience outside of your local community, a robust website with fresh content still remains the best way to interact locally. Surprisingly, many small businesses still don’t have websites, with some now opting just for a social media presence. Creating a website is a simple, low-cost, and rewarding step toward gaining local brand recognition. A company website should contain all relevant information about the business and have original content to attract interest in the business.

Once you have a web presence it is essential to keep the content fresh, updated, and creative. This will not only keep your customers coming back but will help with SEO rankings. According to Eastman, there are easy ways to keep content fresh. “Restaurants can post food or drink recipes, retailers can offer discounts and product profiles, and a tip of the week is always welcome from customers.” Once, you have created this original content you can offer further engagement by sharing it on social media and through emails. This local branding helps market your company, and also raises awareness among potential employees that your business is a place where they want to work.

Creative solutions are key to hiring for small businesses

The low unemployment rate has been a leading indicator of a strong economy, which continues to show signs of resilience, despite repeated interest rate hikes by the Fed. This is cold comfort for small employers who can’t earn revenue or grow without reliable workers.

But, if there is one thing more resilient than the economy, it is small businesses. With some creative thinking, brand building, and the value of community, smaller companies can attract the workers they need.

About the Author

Neil Hare is an attorney and President of GVC Strategies, where he specializes in small business policy, advocacy, and communications campaigns; follow him on Twitter @nehare and on LinkedIn. See more of Neil’s articles and full bio on AllBusiness.com.

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