5 reasons small business can win the hiring game in 2023
This article was published as part of the Denver Business Journal Leadership Trust, an invitation-only network of influential business leaders, experts, executives and entrepreneurs.
I’m going to proclaim 2023 as a year of transition. There is a bunch of uncertainty around the economy due to inflation and interest rates. The supply chain seems to be catching up and inventories are being replenished. One of the components that we are still struggling with is human capital.
Regardless of the layoffs announced recently, there is still a shortage of people to fill open roles in many sectors. In January, Colorado’s governor announced that there are two full-time jobs for every unemployed person in the state. Add to this the challenge that from what I’ve observed, the people who are willing to make a move for a job are making the rules. The good news is that as a small business leader, you have several competitive advantages in 2023. Let’s explore them further.
1. You have the ability to work with agility
Your knowledge workers want flexibility. They want to be measured by outcomes rather than number of hours spent in the office. They want you to expect them to behave like adults and in return, they will generally act like adults. Unless you are delivering hands-on service, or manufacturing something that requires your team to be on site every day and every week, why not offer some remote working options? Those who are not offering at least a hybrid schedule of some sort are severely limiting the talent available to choose from.
2. You can take advantage of newly available talent
Big tech is in their economic cycle adjustment. Reducing staff by 10% to 20% following a period of mass hiring is typical and we’re seeing it happen this year. Large enterprise companies don’t have the luxury of laying off only poor performers, so that means there are some really smart, talented people on the market. Savvy business leaders will capitalize on this windfall to hire some great people onto their teams.
3. You don’t have that big company reputation
There are thousands of young and mid-career professionals who are reeling from their first-ever layoff. These individuals haven’t weathered an economic cycle yet and are in disbelief that a company would have the gall to lay them off—and with very little severance. This is generally what big companies do. So now is your opportunity to sell the benefits of working for a small, growing company. Talk about transparency, include them in what’s happening and offer substantially more professional growth than they saw at the big company that just laid them off.
4. You care about value alignment with your people
As a small business leader, you are instrumental in setting the tone and modeling the character and behaviors you want to see from your people. You work with them daily so you can show them how their work impacts the company, your customers and the community. You can also gain insight into what they value and how they want to grow their career. This is powerful data for you to use as a retention tool.
5. You can adopt some non-traditional working arrangements
An estimated 1.5 million people “un-retired” from mid-2021 to mid-2022, according to a report in The Washington Post (subscription required). These experienced professionals are interested in being useful, staying relevant in their profession and sharing their experience with younger professionals.
In addition, there is a large population of professionals — mostly women — who dropped out of the workforce during the pandemic due to the unpredictability of school schedules and childcare. Both these groups have a desire to work, but not regular full-time hours. Offering them an alternative to the 40-hour work week will not only solve a labor issue for you, but will buy a tremendous amount of loyalty from them.
Final thoughts
No, the labor shortage hasn’t been resolved yet, but there are some ways that you, as a small business leader, can navigate these choppy waters. Keep your company strong and competitive by simply applying a little innovation. You’re used to that, right?
Read the full article here.
