People want to be appreciated, valued, and acknowledged above all else. This is something that you, as an SME, can provide that big companies just never will. Play to this strength.
Many CEOs and business owners talk about their "3am moments". You know the 3am moment - wakes you up in the dead of night and keeps you up for the next hour visualising every dire consequence.
The four common ones that come up are:
- The empty seat kills momentum - You know you could take on more business or expand locations, if only you had more qualified staff on board to deliver.
- The empty seat erodes service - You have a sick feeling in the pit of your stomach that you aren't quite servicing your customers as you promised, and they can take their hard-won business elsewhere.
- You, and often your other key staff, spend time, money and angst on staffing issues with no lasting impact on the staffing problem, except distracting you from what you are best at - running your business.
- You and your key staff have to work harder and longer to pick up the slack of empty seats, burning them out and eroding morale.
When I speak about "empty seats", I mean both the unfilled chair as well as the chronic underperformer - the figurative empty seat.
In an ideal world, a business owner would be an expert in the art of recruitment and retention. However, when you start a business, it's survival first. You roll your sleeves up, try to attract customers, service the hell out of them, and gain a client base and some reliable revenue. Once you achieve that, though, how do you grow beyond survival mode? Obviously, capital is one aspect, but just as important is your ability to find and keep people with the skills and motivations to run your business.
In terms of actually hiring staff, there is no doubt large or medium sized firms have some advantages over small businesses if they can get their act together and do it right. In practice, though, retaining your people when you only have one, four or ten staff is actually easier than for a large organisation for one big reason - staff want to be loved!
Time and time again we hear that money is not the major reason people stay with their employer. Surveys talk about job titles, professional development, career advancement, recognition, and feedback from managers as the most important factors in determining why an employee leaves a company.
Sometimes your people will move on because they cannot continue working for significantly less money than they can get elsewhere, or they want to move on to a different challenge. This is absolutely understandable and something that you may not be able to change. However, if this is the ONLY reason staff leave your business, you will be well in front!
Rather than talk in HR-speak about the "employee life-cycle" I think there's more value for a small business in some concrete ideas that you can institute quickly and simply. The fact is, these tips represent real-life application of HR theory anyway. So here goes: