As the market tightens, and small companies are competing with larger companies for talent, salaries have and will continue to increase. To stay competitive, it will be important to put your resources in your core function and outsource non-core activities.
Is your back office helping or hurting your business. Business management consultants see the same thing over and over again. We are brought in to solve a problem. Through the discovery process, we find a company culture driven from leadership or not driven from leadership that has become an obstacle to the success of the organization. For large companies this can be group think, bureaucratic processes and decision making, fear of success or failure, and not feeling that there is a connection to the employee’s performance and the employee’s compensation or opportunities for development.
Small companies face different obstacles. Decisions can be made quickly. Business owners can have a significant impact on the culture and work ethic of the organization. Compensation in the new competitive market for talent will inevitably have employees asking what is in it for me. But how can we get employees to not ask the question in the first place.
It really depends on the industry and how much change and opportunities for development exist at your company. Once those opportunities are determined, they can be delivered to employees before they start to consider leaving the organization. For the rest of 2015 you should expect recruiters to start contacting your employees through LinkedIn, direct calls, email and job boards. Recruiters are having a tough time finding talent for their large customers. This is driving up compensation. We have seen this primarily in tech, financial and construction. We expect this to continue the rest of this year in other segments of the employment market as well.
The best way to cope is by getting employees not to consider leaving in the first place. Coming up with a long term plan for employees is the best way to get employees to stay. By getting employees to commit to a long term plan that might include: Education, certifications, more complicated projects, title changes, salary increases, more responsibilities, they will feel obligated to their current employer and won’t seek out new opportunities. People don’t like the unknown. This is a huge advantage for current employers. It is an inexpensive and sometime free approach to lowering your turnover.
Barb is the CEO of Fisher Bookkeeping, an outsourced bookkeeping consultancy that provides small businesses with a full-service financial department. Her favorite aspect of work is to break down the accounting to meaningful bits, so entrepreneurs can make a powerful difference in their own business. She's also a power lifter (squat: 215, DL: 270).