Posts Tagged ‘small business hiring’

By Rieva Lesonsky

Are your employees going to stay with your business as the economy improves and more job opportunities arise? This is a crucial consideration for small businesses, who can ill afford the time it takes to lose the knowledge of key employees, or to find and train new workers to replace them.

Recent findings from Deloitte’s Talent Edge 2020 survey series, which polled more than 350 employees at large companies worldwide, give some insights into employee attitudes toward the workforce. What interested me about this study is that it’s not just the state of the economy, but the generation of the worker, that is affecting their outlook about their jobs. In other words, employees in different age ranges have different frustrations and needs that will affect whether they stay with their current employers or attempt to leave.

Deloitte found that many companies are failing to address the critical needs and potential frustrations of their employees, and often do not have a realistic picture of how employees see them. Since this survey was targeted at big companies, this means opportunity for your business to address the issues that big firms are not.

The report found that employees aren’t waiting for things to improve—they are already actively testing the job market. Only 35 percent of employees surveyed expect to remain with their current employers, while nearly two out of three (65 percent) want to leave their current employers.

What are they looking for? Among employees surveyed who are actively or passively seeking out new employers, 53 percent say the prospect of job advancement or promotion would convince them to stay with their current employers. But there are some significant differences among generations when it comes to what triggers employees to stay or leave.

Baby Boomers expressed the greatest discontent with their employers. They were frustrated that their loyalty and hard work has been neither recognized nor rewarded. Nearly one-third (32%) of Baby Boomers also cited lack of trust in leadership as a key turnover trigger. In fact, this was their top-ranked reason to leave a job, and the highest percentage of any generation citing this issue.

While Boomers may be unhappy, Generation X employees are the most likely group to actually be considering exit from their current jobs. Only 28% of surveyed Gen Xers say they plan to stay with their current employers. What’s the biggest turnover trigger for them? Lack of career progress, cited by 65 percent. Generation X is at the time of life when they want to see forward movement.

Millennials’ idea of a good workplace differs sharply from the other generations. They are more likely to consider their employers’ commitment to “corporate responsibility/volunteerism” and a “fun work environment” important.

What do employees think of their workplace? Very few employees described their employers’ overall retention efforts as “world-class” or even “very good.” However, survey results show that employers who make an effort to keep their employees satisfied will be rewarded with employees who are far more likely to remain in their jobs.

With big corporations having laid off thousands of employees during the recession – and many still not hiring – it’s clear there is something lacking in the workplace of big companies. Will employees find what they seek at your business? If so, you’ll be rewarded with loyal staff.

Image by Flickr user Kheel Center, Cornell University (Creative Commons)

By Rieva Lesonsky

Are you casting your net for new employees? The Small Business Success Index recently released by Network Solutions reports that small business owners are getting ready to hire, and that report is not the only data providing that kind of good news. CNNMoney.com reports that the nation’s small businesses added 100,000 jobs in February, according to statistics from payroll provider ADP.

The February hiring boost followed on the heels of 101,000 new hires in small companies in both December and January, according to ADP (which defines small businesses as companies with fewer than 50 employees). What’s more, ADP reports that small companies began hiring in January 2010 and have added new jobs each month for the last 12 months in a row.

In fact, of the total 217,000 new jobs added in the U.S. in February 2011, 46 percent were in small businesses. What kinds of small businesses are hiring? Most of the companies are in the service industry. In February, 97,000 of the new jobs added were in service, while just 3,000 were in manufacturing or goods-producing companies. Service businesses are less likely to be able to get by without adequate staff.

While this positive outlook is good news for small business, we’re not out of the woods yet. Overall U.S. unemployment is hovering around the 9 percent mark. And small companies still have far to go to make up for the total 2.7 million jobs they lost from April 2008 to February 2010. So far, a total of 607,000 jobs have been added back, ADP says.

Overall, for individual small companies, the hiring outlook is mixed. With prices for gas, food and other commodities rising, and the recovery still weak, many entrepreneurs aren’t feeling confident enough to hire. Others are still scarred by the memory of having to lay people off, and are relying on temporary or contract workers to fill the gap instead of taking on permanent employees with all the attendant responsibility.

CNNMoney.com’s article reports on one service business that’s hiring—because it simply needs the manpower to keep up with demand—and another that’s still reluctant after the losses of the last few years. Where does your small business fit into the picture?

Image by Flickr user Joost J. Bakker IJmuiden (Creative Commons)