For small-business owners, concern about finding talent remains high

Running a small business is not for the faint of heart. While small businesses often face many of the same obstacles as multinational corporations, they do so with a fraction of the resources.

According to a recent report by payroll provider ADP, finding qualified employees remains the top challenge for small-business owners today, although those concerns have lessened slightly.

The small-business owners surveyed by ADP said they struggle most with finding candidates; losing candidates to competitors, people not showing up to work, and candidates not showing up for interviews were among the other most prominent reasons for this challenge.

One Brooklyn-based flower shop owner told HR Brew in March that they had better luck posting jobs on Instagram, rather than the traditional job platforms. This helped them find employees who were passionate about the industry and the shop’s environmentally friendly mission, and also improved diverse representation among the workforce.

ADP found that small-business owners indicated that demand for higher pay, a disconnect in job expectations, and competition from other firms are driving retention challenges. The survey concluded that companies between 50–499 employees were able to offer greater benefits and flexibility to employees to address this. Some are getting creative: San Francisco cake shop Butter& previously shared its story with HR Brew about offering stock options to its employees.

The administrative work of forming a corporation and creating stock options may be a bit of a lift for smaller businesses, but Butter&’s owners told HR Brew that a profit-sharing plan could accomplish similar goals (giving employees skin in the game) without the overhead cost of maintaining a corporation. They also noted that transparency with company finances helped employees feel more invested during busy times and helped identify cost-saving opportunities.—AK

Are you a small-business owner who has overcome a staffing challenge like the ones described here? We’d love to hear from you! Email your story to [email protected].