It’s no secret in the staffing industry that one of the biggest challenges is recruiting candidates.
With top talent receiving multiple job offers, it is no wonder that a shortage exists within the candidate recruiting market. In 5 Tips for Attracting and Retaining Top Talent, we offer suggestions to help you succeed including offering enticing compensation. The approach to compensation will not be the same for all firms. Whether your firm is a small business or a large corporation, it is up to you, as a recruiter, to recruit top talent and retain any existing talent in your organization.
The Small-Business Approach
Employers in the small-business environment, like most employers, are looking for highly skilled candidates. According to Vistage, more than half (55%) of CEOs of small and midsize businesses surveyed plan to increase their workforce in 2016. The year is already off to a good start as small businesses with 1 to 49 employees created a total of 76,000 jobs in February, according to ADP’s Small Business Report. This represents 35% of overall job growth for the month, showcasing that small businesses are making gains in the job market next to large companies.
As companies in the small business market continue to push for increased revenue and investment, the biggest challenge they face lies in the recruiting, training and retention of new and current employees. According to a survey from the Bureau of Labor and Statistics, even though job growth is on the rise among small firms, net job loss continues to be constant. One factor in the lack of retention of small firms is the inability to compete with the compensation offered by larger companies to candidates.
Small firms have to adapt their approach to securing top talent if they cannot match compensation compared to larger firms. Small firms can offer incentives involving less traditional benefits. One firm discussed in a recent New York Times article mentioned alternative one-time compensation such as covering first and last month’s rent or providing an all-expenses paid vacation on a milestone anniversary. Another firm offered their long-time employees shares of the business to compensate them for their loyalty. Even though small firms may not be able to offer the compensation found in larger firms, they can offer non-traditional benefits that are hard to beat. The key to this approach is asking employees what matters to them and which compensation alternatives would be most meaningful.
The Large-Business Approach
While working for a small business has a lot of appeal, larger firms, with larger budgets for staff, may have the upper hand. When employees look for another job, they tend to want something that will pay them on average 10% more than what they were previously making. Larger staffing firms can combat this by rewarding top talent with performance-based pay.
According to Roth Staffing, employers should adopt a performance-based pay structure to increase salaries of top performers by 5-10% in order to help with retention. Large firms with the capital to include such a plan should do so if they hope to retain top talent. Large firms should also look to offer competitive compensation in the form of added benefits.
While it may not be affordable for small firms, there are some ongoing benefits that large firms can offer attract and retain top talent. Benefits candidates may look for from large firms might include gym memberships, professional development courses, and for the younger generation of talent, tuition reimbursement. Benefits are just as important to candidates as pay. When competing with another firm on compensation, these non-traditional benefits may be what makes your firm stand out amongst the other job offers.
Large or small, staffing firms are not looking to hire everyone that comes to their door. Offering attractive benefits and compensation can help recruit top talent that you want and keep talent you don’t want to lose. If you want to discover in-depth tips on how to attract and retain top talent, read Bond’s new eBook today.
The Bond Team has deep industry experience that makes it uniquely capable and responsive to your needs. No staffing or recruiting software firm knows the business better, and that know-how is focused on helping you do what you do better and more profitably.
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