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Small businesses have fewer resources than larger companies to attract and keep the best employees. Compounding the problem is the nearly six years of private sector job growth, leading to talent scarcity in some areas. A company owner's priority is necessarily retaining the top talent already on board rather than looking for a replacement in the competitive jobs market.
When considering employee retention best practices, increased wages is the most readily apparent method to improve employee morale and commitment. However, pay raises typically provide a temporary benefit and don’t always address the root cause of why employees decide to leave. Luckily, there are a variety of methods to retain talent that are both more effective than simply increasing salaries. — Chris Rush, vice president of strategy for ADP's Small Business Services division [via Workforce]
Retirement benefits are important, Chris goes on to explain in the online magazine Workforce:
The second annual study of the ADP Research Institute on retirement savings found that 98 percent of companies with more than 5,000 employees offer retirement benefits compared with just 33 percent of companies with fewer than 20 employees. (Editor's note: The author works for ADP.) The majority of small businesses aren’t offering a retirement plan to their employees because of the perceived cost and complexity of implementing one. However, there are many low-cost, easy-to-manage retirement plans available. It’s important to remember that prospective hires who experienced the financial crisis want retirement security. When implemented correctly, retirement benefits can both foster loyalty and drive employee engagement, which ultimately helps companies retain talent and build a better workforce.
Millennials are now the largest part of the workforce. They expect cutting edge tools and technology, particularly those that they can access on their mobile devices.
Mobile capabilities for applications such as payroll and time and attendance are becoming increasingly popular. By allowing employees to access these applications on a mobile device, organizations can make significant progress in attracting millennial workers while promoting a culture of self-service and flexibility. In fact, it may be easier for small businesses to implement mobile applications since large companies typically need to gain internal alignment before trying new solutions. — Workforce