Date: April 7, 2022
Tips for Small Business Owners Facing ‘The Great Resignation’
“The Great Resignation” phrase was coined last year in an interview by Texas A&M Organizational Psychologist and Professor Anthony Klotz. It refers to a labor movement brought on by the pandemic. The increased levels of stress that COVID created inspired deeper reflection from employees, resulting in many resigning their current jobs in pursuit of better opportunities – such as higher pay, remote work, and a better life and work balance. At the core of this movement is a desire to be in a work environment that gives an individual a sense of purpose, where they can grow and thrive.
This trend continues into 2022 and has led many businesses to re-evaluate and try to keep their top talents. Many larger corporations have met this need by offering increased wages, more flexibility with schedules, and remote work. Some have even opted to pay for college tuition. If you are a small business owner, you may feel like you cannot compete with all these strategies offered by large corporations, but we have good news for you. There are key ways you can attract and keep top talents in your industry! Here are our top tips:
- Recognition and Learning – While higher pay is important, many employees place even more value on a solid career path. You can offer training that helps your employees grow and build their skills. Promoting in-house leads to higher performance and retention as it gives your employees a real sense of purpose. Recognizing your employees increases the overall sense of morale and is a vital component of retention.
- Clear Communication – Many employees feel out of the loop or disconnected from management. Having a system and a platform in place that enables employees to voice their feedback will help this gap. Set clear goals and make sure your employees are aware of the company’s core values. When everyone is working towards the same goal, there is a sense of pride and unity. When people feel heard, they will feel appreciated and go above and beyond.
- Expand your talent pool – If you are a business with remote positions, think about widening your talent pool to include oversea applicants. This will not only save you money, but it allows you to attract highly skilled applicants.
- Virtual CFO – Many small business owners often wonder when they should hire new employees, if they are pricing their services right, and how profitable they really are. It is easy to get overwhelmed by the financial aspects when you are busy running your business. Having a Virtual CFO in your corner will put your mind at ease and help answer these questions that are imperative to your growth and success. Your Virtual CFO can help you map out a compensation plan that leaves your employees feeling satisfied and motivated without sacrificing profits or scalability.
- Tax Planning – If you partner with an expert you can save thousands in taxes that can be reinvested back into your team and recruiting. The majority of small business owners overpay in taxes by about 18,000 per year, that’s roughly $1,500 a month in extra cash. Investing in a plan to reduce your taxes can free up more cash flow than you may realize. That cash can go a long way towards creating happy employees, and happy business owners.
As a small business owner, it’s imperative to stay competitive in the labor market. Attracting and retaining loyal employees is getting harder and harder, but it’s also more and more important. Turn-over is EXPENSIVE. Whether it’s with CP&A or another professional firm, make sure you have a plan (both financially and operationally) to retain the talent you currently have, and attract the new talent you will need to grow. You don’t have to sacrifice profits if you plan for the unexpected and take proactive steps to protect your cash flow. We can help! Click here to schedule with one of our business strategists.