Communities over companies: Small businesses put people first and compete for top talent
For small employers, the current economy presents many challenges, but also many opportunities. A new home-based survey shows that employees at small businesses feel more valued than those at large companies. Read the full report below or download it as a pdf.
We have weathered numerous supply chain disruptions and shortages over the last few years. Still, there seems to be at least one asset whose management is staying up late due to a shortage of supply. It’s the workforce. In fact, a small business owner told his Homebase in June 2022 that hiring new employees and motivating/engaging existing employees was his top business concern, with a high Only rents and real estate costs are affected. Also, as of August 2022, he fears he will be unemployed at some point over the next two years, he told Homebase. . When it comes to the job market, this suggests workers still think they’re in the driver’s seat.
This is a continuation of a trend that started in 2021 when more than 47 million Americans voluntarily quit their jobs. U.S. Department of LaborSince then, US employers have continued to put out more jobs than there are workers available.For example, as of July 2022, 11.2 million people will be Job Information Only 6.3 million in the US new employee.
But new research from Homebase suggests that good news is just around the corner. Despite continued labor shortages across the U.S. economy, there are signs that things are improving.
Small is strong: Small employers have a unique connection with their employees
Employees judge their job satisfaction based on how their job feels, not just how it’s paid. In June 2022, he surveyed 3,300 hourly and gig workers and found that small businesses were the best at making their employees feel good. Compared to employees in companies with 500 or more employees, employees in companies with fewer than 10 employees:
You can be yourself at work: A majority (53{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c}) of small business employees strongly agree that they can be themselves at work, compared to just 36{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c} of large company employees.
Feeling valued and supported at work: A staggering 81{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c} of small business employees say they feel valued and supported at work, compared to 71{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c} of employees at large companies.
Feel connected to your employer: 35{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c} of small business employees feel a stronger connection with their employer compared to just 21{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c} of large company employees.
There is an opportunity for small businesses. The best way to find and retain hourly workers may be to lean into what they already do well: assets such as leadership, learning, respect and culture. In other words, people are more important than wages.
And our research confirms this. Our June survey found that his 59{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c} of small business employees in the last 12 months I never have Quit or are considering quitting, compared to 46{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c} of employees at large companies. Put another way, more than half of workers in large companies are considering leaving, compared to less than half of workers in small businesses.
What Hourly Workers Want: Wages — But Not Just Wages
Not surprisingly, our research found rewards to be important. When he cited one thing employers could offer to increase employee engagement, nearly half (49{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c}) of current employees said that his salary was 10{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c} higher. Similarly, prospective employees see salary as the most important factor when evaluating potential job opportunities.
But it also means that for more than half of hourly workers, money is not what they want most from their employers. let it sink
Money isn’t everything, agrees General Manager Brian Willis. PersnicketyPrint in Orem, Utah. Some time ago, he surveyed his employees to identify what they valued most. “Most of them valued culture and work environment … more than monetary value, which was a surprise to us,” says Willis, noting that his company’s culture is one in which employees are empowered He describes it as something that makes him feel respected. “Our employees feel safe enough to tell us their concerns and help us resolve them… If they come up with new processes or new ideas, we are happy to investigate them.”
Even if small businesses cannot pay morethey can compete by paying differentlyWages may continue to be the biggest driver of employee engagement (in order of importance):
- 10{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c} higher salary or wages (49{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c})
- Increased opportunities to learn new skills (12{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c})
- 4 day work week (8{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c})
- Paid vacation (7{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c})
- B.Better health insurance (4{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c})
- 10{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c} higher bonus (4{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c})
- Increased respect from management (4{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c})
- Improving corporate culture (3{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c})
- Remote work options (3{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c})
- Strengthening our commitment to diversity (2{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c})
- Childcare support (2{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c})
- Hybrid work option (1{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c})
- Increased autonomy (1{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c})
“We try to be proactive about what will be important to high school and college students, or stay-at-home moms. And honestly, a lot of them aren’t related to money. your scentis a custom candle store located in Geneva, Illinois. Employees enjoy flexible scheduling, quarterly team building events, and meals for the team when they’re busy and understaffed. “We are always on the lookout for non-monetary perks.”
Like incumbents, future employees value culture in addition to compensation. These are the top 10 things prospective employees said they were most attracted to in their new job.
- salary
- Respect from management
- leadership
- Predictable schedule
- freedom to be yourself
- Corporate culture
- learning and development
- autonomy
- commitment to diversity and inclusion
- Health insurance
All of these are small business owners, Force & Nomad, a Houston-based lifestyle marketplace for clothing, home and wellness products. The company recently raised its base hourly wage in preparation for competition from surrounding companies, but it has also cultivated a brand that job seekers want to get involved with.
“We believe in a comfortable lifestyle. We believe that everything you own should inspire you and make you feel good,” explained Sommer, referring to employees says he is drawn to his company’s values of sustainability, self-expression and unleashing creativity. “People connect with our brand and want to work for us because of that.”
The Importance of Mentoring: The Attraction of Entrepreneurship
According to our research, Employees at small businesses are more aspiring to become entrepreneurs than those at large companies (39{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c} vs. 26{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c}). And this is especially true for young workers.
Entrepreneurship is in your blood when you own a small business. Leveraging your knowledge and sharing it with employees through mentorship, education, development, or other means can provide a unique advantage among employees who want to follow in your footsteps.
“Our store manager teaches yoga classes on the side and encourages that. In fact, we had her use our space to teach yoga classes,” Sommer says. . The store also has a coffee bar, and the store manager recently devised a coffee-tasting experience for local Airbnb guests with Sommer’s blessing. If they have an idea, I tell them to do it and make it happen.”
Upside Down Upside Down: A Shrinking Economy Brings A Growing Workforce
Employers of all sizes and in all sectors are struggling to fill open positions. But finding employees isn’t the only challenge. We are also negotiating with them. in November 2021 Investigation Homebase found that of more than 500 small business employers and 2,300 employees, both groups see benefits for prospective employees in the hiring process, with higher wages, more desirable schedules, and better jobs. I discovered that it gave me the ability to negotiate about benefits.
Adding insult to injury is the broader US economy. GDP,for example, downward trend. on the other hand, consumer psychology When wage slowing down. and, inflationreached a 40-year high in June, remain stubbornIn August, employees told Homebase that inflation was affecting gas, food, rent and electricity bills. All this as a large company— fedex, gap, Tesla, compass needle, netflix, microsoft When Target, announcing layoffs or sluggish earnings, to name just a few. No wonder about 80{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c} of small business owners and employees said to his Homebase that they are concerned about the recession (in July 2022 he had 500 small businesses and his 700 employees (according to the survey targeted).
Whether a recession will actually materialize remains to be seen. But from an employment perspective, a shrinking economy may actually benefit small businesses.
Our research already confirms this. In September 2022, small businesses are posting fewer jobs on Homebase than in previous months. that is The number of applicants is increasing due to publication. Our research also shows that employee turnover intentions have dropped sharply compared to last year.
- The number of workers who believe they will have better job options 12 months from now has fallen 11{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c}, from 44{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c} in November 2021 to 33{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c} in June 2022.
- The number of workers who believe there are worse job options has doubled over the same period, from 6{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c} in November 2021 to 12{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c} in June 2022.
- number of hourly workers who answered please do not The percentage of respondents planning to look for a new job in the next 12-24 months increased from 39{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c} in November 2021 to 50{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c} in August 2022.
*Sample size of survey for hourly workers: 2,300 respondents in November 2021, 1,750 respondents in June 2022, 1,000 respondents in August 2022.
Forth & Nomad owner Andy Sommer said: “It seems a little easier now.”
Conclusion
Companies of all sizes struggle with recruitment and retention. By attuned to employee sentiment and investing time and resources to create the benefits and culture employees want, small businesses can thrive today, tomorrow and for years to come. .
home base can help
The economy and labor market are constantly changing, but one thing that will never change is that small businesses need to attract, engage and retain the best employees. Although the last few years have been particularly difficult, small businesses have an opportunity to build and strengthen their teams with high-quality talent.
Homebase helps small businesses by giving them the means to not only manage their hourly workers, but to engage them in ways that build the trust, loyalty, and culture that sets their business apart. Useful and easy-to-use apps include:
- online scheduling When time tracking Tools that give transparency to employees and tools for managing shifts, hours, vacations, and payroll.
- built-in messaging Includes a shoutout to recognize a job well done to improve team communication and collaboration.
- advance payment Brought to you by Homebase, employees get early access to earned wages at no cost or liability to the business.
- Built-in shift feedback Performance tracking to know how your team is doing.
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