“We’ve learned this year that assumptions you have about the future can be destroyed overnight. That’s true for the poorest to the most successful, the old dry cleaner to the tech startup. It was true in January, and it’ll be true again in the future. Things change.
If that’s the lesson, the question is: what do you do about it? How do you think about a world where fundamental assumptions about the future are so fragile?” – Morgan Housel
When it comes to recruiting and retaining employees, it can feel like an uphill battle for entrepreneurs with small, growing companies. They will likely have less capital at their disposal than their larger competitors, so attempts at salary bidding wars might not be a viable option.
But instead of playing to their weakness, the entrepreneur can leverage the advantages they have over many larger enterprises: flexibility, growth, innovation, and purpose.
Smaller companies have the luxury of being more malleable and adaptable to the unique situation of each employee. Flexibility is a critical advantage in recruiting and retaining employees looking for flexible working hours/locations, a significant component of wellness that many employers still (shockingly) overlook. Large corporations with rigid, bureaucratic corporate cultures have an especially difficult time competing with this.
For those not interested in climbing the corporate ladder in exchange for a few decades of their lives, smaller businesses are an ideal place to learn and grow at their own pace. Due to the flat organizational structure and entrepreneurial culture, small businesses can provide employees with plenty of career advancement as the business itself grows. This tends to be just as critical in retaining employees as recruiting them.
Allowing employees to be exposed to new skills and responsibilities offers tremendous growth opportunities for both the individual and the business. A chance to work in this environment will be a breath of fresh air for people coming from an archaic, arbitrary, and political employee advancement process that has crippled the spirit of so many in the corporate world.By focusing on helping the employee advance in their career, instead of just the company, small businesses are better equiped to attract and retain prime talent across the board.
Advancements in technology has made it possible to automate and even eliminate many tedious and boring tasks, and often for a fraction of the cost. Many corporations have embraced this technology for good. Still, others use it as an excuse to cut salary costs at the expense of their employees. Perhaps this makes the firm cost-efficient, but is it a truly efficient use of resources?
By substituting humans for technology, these businesses are draining their sources of innovation. A conscious entrepreneur will instead use this technology to enhance the employee output, rather than replace it. There is an abundance of cost-effective tools out there that can reduce the menial tasks so that employees have more time for creative and strategic work. Not only is this beneficial for employee wellness, but it also helps maximize returns on both human and tech resources.
This one is self-explanatory. Humans ultimately want purpose and meaning in life. Most large corporations still do a mediocre job of connecting their employees to their mission. Others simply have a shallow mission to begin with. Organizations whose top priority is to generate profits fail to inspire their people, and these businesses are bound to have unsatisfied people searching for an escape route. Entrepreneurs by design are chasing a specific and meaningful purpose, and this becomes an incredible strategic advantage when it comes to recruiting and retaining personnel. Finding someone who buys into the same vision and mission will go a long way in persuading them to join your team, even if your financial offer isn’t as strong.
There is no shortage of companies who are lacking in each of the above areas, and chances are they have great people who feel overworked, undervalued, or otherwise unwell. This is where small business can leverage their strengths to help these people achieve flexibility, growth, innovation, and purpose in their work.