Hiring And Retaining Qualified Employees

How Hard Is It To Hire And Retain Qualified Employees?

Ah, a big problem for most small businesses. But it can normally be overcome somewhat easily, depending on the wages strategy that’s put into place.

Look at your wages strategy in pretty much the same way as your pricing strategy.  Employees make job decisions in much the same way as customers make buying decisions, and elasticity-of-demand plays a huge part in employee choices.  Keep in mind as well that their job is what they are doing with their lives and is how they provide for themselves and, where applicable, for their families.  Their self esteem rides high upon what they do for a living, and how well they can provide, so you can’t take it lightly!

How Should You Pay Your People?

I strongly recommend you pay the people who are earning your living for you, as best you can.  In the beginning, this can be very tough for a small business, while you may also trying to keep prices low to gain market share, but you have to do what you can.  Put as much of what the company is earning as you can, back into the company to grow it.  That includes that you should fertilize your people with what you can to make them happy and content that you are being fair.

I’ve seen the same thing over-and-over, that small business owners who are successful, get greedy!  They may drive Porsches, Feraris, or other exotic cars when the money gets good, and forget to take care of their people.  If you flaunt your success like that, you alienate your people and your customers.  So again, put the money back into the company to make sure the company, which includes your people, comes first before you treat yourself.  Build loyalty rather than resentment!

Hiring The Best Employees

Advertise good wages when you seek new employees, and you will get the interest of the better employees. You have to keep in mind that they may be looking because they are not satisfied with their current positions.  Dissatisfaction is usually based upon them being unhappy with their current management, and/or their wages.  So solve those issues for them if you want to get and keep the best!  And keep in mind when you advertise, your current employees may notice it.  If you offer better pay than what you are paying your current employees, you will certainly create resentment, and you may lose them!