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#1 Challenge Small Business is Facing in 2017

 

Wasp Barcode's annual State of Small Business Report shows that 50% of small business owners say that hiring new employees is the top challenge they are facing in 2017. This makes it the number one challenge employers encounter beating out other challenges which are increasing profits, employee healthcare, growing revenue, and cash flow.

 

If you own a small business chances are you are going to hire at least one employee this year according to the stats and Anna Johansson, Inc Magazine who shed light on this information. Unfortunately, there are 4 big challenges that employers face when hiring.

Challenges they have to get a grip on if they are going to grow the business successfully.

Here are the 4 biggest hiring challenges impacting small businesses and how they can be either alleviated or overcome:  

1. Competing for Talent with Bigger Companies. 

Yes, bigger companies with the brand names can offer, in many cases better benefit packages, higher salaries, and other perks. It is by far one of the biggest hiring challenges being faced by the smaller companies. But, as we stated in my latest article "Employees Happiest with Small Employers" it is more than just about benefit packages that make employees want to work for a smaller employer. 

Here is a big plus your small business has over the giants, it is less bureaucratic. In fact, many small businesses got started by those who escaped the big corporate world and the bureaucracy that went with it. Less bureaucracy means more efficiency and quicker growth potential, which is exactly what many candidates want.

2. Finding Qualified Candidates for Your Business 

Frustration abounds when you post for a job opening and get dozens of unqualified applicants who waste your time. Hiring a recruiter can help, but the cost is high and the risk is still high you are going to get the right person. 

A great option is finding people through your connections. Your vendors or contacts through your business should know you are looking. Same with your church, networking groups and even social media. Offer rewards to your employees for referring a candidate. Those employees that come to work through a referral have a better picture of the company and culture.

3. The Warm Body or Can They Fog a Mirror Syndrome

Many times, especially with startups, business owners will go into the hire the "Warm Body" mode. The pressure is on to hire someone, anyone to get the job done. This might work in the short term, but can drag the business down along with any profits made.

Creating processes for not only getting the right people on the bus but in the right seats as Jim Collins states in his book Good to Great is crucial for growing the business long term. 

4. Business Leaders Ability to Hire Talent

Small Business owners and/or their key management, suffer from inexperience related to talent management.  As a result, they end up squandering good hires and making bad hires seem worse. Hiring on gut feeling or out of necessity is never a good idea. 

Business leaders in the company must be able to learn how to interview candidates and determine if they are the right fit. Your organization, must have in place a set of standards and hiring practices that fall in line with the company objectives and vision set by the business leaders. 

Don't Go it Alone! 

Business owners do not have to go through hiring the right people and managing them alone. Employee Administrative Services organization like Hamilton Edwards can provide cost effective support, processes and procedures needed to help recruit, hire and keep top talent. Fortune 500 benefits, administration and along with less headaches are a phone call away. 

 

 

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Hamilton Edwards, Inc.
9101 Southern Pine Blvd.
Charlotte, NC 28273

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