South-Western - Management  
Small Business Secrets to Hiring
Topic Entrepreneurship
Key Words Recruitment, small-business
InfoTrac Reference A149170907
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News Story

Small-business owners often feel that it is difficult for them to compete with large corporations when it comes to attracting talent. Entrepreneurs often feel especially constrained by the fact that they can not match the benefits offered by the large companies. However, David Solomons, President and CEO of Hyrian, a recruitment-process outsourcing firm says entrepreneurs can compete for good talent if they know what to emphasize.

Small businesses often have trouble attracting good candidates because of the candidate’s worry that the business won’t have the stability of larger firms. Small companies, though, can reassure candidates that they do everything to provide as much security as they can for their employees. Many small-business owners don’t realize that benefit premiums can be obtained for a reasonable expense, especially when compared with the expense of losing good employees.

Small-business owners should also encourage candidates to look at the big-picture of the job offer with a smaller firm. Small companies offer the candidate the opportunity to learn more and have more responsibility. The employee can test new ideas and work independently.

Small-businesses can also make quick hiring decisions, and can provide access to the highest level of management in the company, who will be working right alongside the new employee.

Work environments can also make a big impact on the employment decision. Perks like casual work environments, flexible schedules, telecommuting, social activities, and extra vacation and personal time can be very important in the candidate’s decision-making process. Letting employees work from home is another plus.

Making sure that the workplace is fun and encouraging is another way to promote a small business. Research shows that people don’t like to leave jobs where they have good friends and a good social network. The physical environment can also have an impact. People derive identity from their jobs, and they want to be proud of the place in which they work. A nice break room and a clean office seem like small factors, but can be big in the mind of a potential employee.

As far as pay, small-businesses that want to keep the best people need to be prepared to match the going rate. Only the best talent can help the company to grow and succeed. Salary.com can provide good information about going rates for positions.

Questions
1.

What benefits should small businesses emphasize in order to help them compete with larger companies for talent?

2.

Why does the author of this article think it is important for small-business owners to pay competitive rates for talent?

3.

How can small-business owners find good candidates for their business?

Source “Small Business Secrets to Hiring,” Business Week Online, August 7, 2006, pNA.
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