Workforce Trends: Recruiting Talented and Skilled Employees

A Growing Small Business Concern
Last month, the National Federation of Independent Business (NFIB) published its “Small Business Priorities & Problems” report. This publication is based on a research procedure that analyzed responses to questionnaires returned by 3,530 small business respondents. One of the growing problems reported by small-business employers is finding and keeping skilled workers.  

“While the problem may reflect either regional and/or industrial differences, the percent of small business owners who rank labor quality as their most important business problem in NFIB’s Small Business Economic Trends survey has shifted upward since 2004,” as stated in this report. Other national workforce trends surveys also point to this growing concern.

Small Businesses Face Increased Demands for Talented Workers
It is important to keep informed about workforce trends. Because small businesses are growing and expanding at a higher rate than large business, they also face increased demands for skilled workers. As a result, increased HR pressures come into play. Their concerns are expressed by these commonly asked questions:

• How do I identify and attract talented candidates?
• How do I keep these talented employees (reduce turnover)?
• How will training programs attract and keep talented employees?

Ways to Improve the Hiring Process
Hiring is an imperfect process and hiring mistakes will cost a small business in direct and indirect ways. Here are a few methods to help improve your chances and tackle this small business workforce trend, also known as workplace management:

1. Be mindful of your reputation, and provide a better work environment than your competitors. A “better work environment” is subject to opinion, but most quality people are attracted to organizations known for ethical, respectful and sensitive treatment of their employees. Talent and quality attract talent and quality.
2. Take advantage of Web-based recruiting tools that automate and streamline the hiring practice. These tools speed up the recruiting process and also serve as an applicant-tracking system. There are also Web-based tools in the compensation and planning areas, which help businesses understand the competition.
3. Understand that potential employees may be Internet browsing about you as well. Employers should also remember that candidates have a lot more information available to them because of the Internet. Many candidates research prospective employers through social-networking Web sites. (See number 1 above.)
4. Offer candidates opportunities for training and development.  On-the-job training induces many talented candidates and may be the convincing part of the deal. Trained employees are generally more successful and loyal employees. Additional training also enhances an employee’s ability to advance their career within the organization, and they are more apt to stay with you through the long haul. All these factors add up to a lower turnover rate.
5. Be open-minded to offering a flexible workplace. Second to offering higher wages, many candidates are attracted to flexible working conditions which may edge out competing employers. For instance, think about developing variations to the traditional “8-5” workday, especially in this global economy where many businesses are up and running 24/7.  Strategic HR planners are reviewing and implementing work-life balance benefits that add value without adding cost such as: alternative scheduling, job-sharing, commuting and other creative workplace choices.

As the cliché goes, “We spend more time at work than we do with our own families.” Talented candidates today are looking for quality of life advantages in the workplace.  Attracting and keeping quality and skilled employees will help ensure your small-business success.

Because small businesses are growing and expanding at a higher rate than large business, they also face increased demands for skilled workers.