5 Ways to Hire Loyal Employees on a Small BudgetMay 13, 2015
*This article was submitted by Brad Heritage, Director of Business Development at Funding Circle, an NSBA corporate partner.
This is the kind of news that we live (and lend!) for: according to the Washington Post, the new employment numbers of larger corporations are wavering, but small business hiring continues to grow impressively month over month.
Hiring is a positive sign that your business is growing – but it can be tiring and expensive. That’s why you should invest in ways to keep your awesome employees happy and committed! Here are a few ways that a term loan can help you afford to hire and retain the right people to help your small business grow.
- Compete for talent. Almost one-third of small business owners have at least one job opening they could not fill because they couldn’t attract qualified candidates. This is great news for workers hoping for competitive salary offers, but less exciting for small business owners who might be operating on a modest hiring budget. Luckily, a boost of affordable funding can take the edge off your hiring constraints and allow you to compete for high-quality candidates who will take your business to the next level. Just ask Dorika, Funding Circle borrower and CEO of LiveWell Home Care: she refused to hire anyone less than the best for her sick and elderly patients, and now projects to quadruple her revenue by the end of 2015!
- Say thank you – with a raise. The first and easiest step you can take to preserve your hiring budget is to continue competing for the talent you already have. Pay at small businesses has been largely flat for the last 25 years — even though worker productivity has increased 60 percent since 1990. Show your employees how valuable they are to your business by rewarding them with a raise and promotion – or else you may lose them to higher-paying positions elsewhere. Think of it this way: every time you have to replace a full-time employee, it can cost more than one-fifth of their salary. Yikes!
- Invest in worker wellness. According to the NSBA, nearly all small business owners say the health of their workers is important to their bottom line but only 22 percent offer employee wellness programs. Don’t write off the power of yoga, ergonomics, and flexible time off. Employee wellness programs can lessen workers’ compensation claims and reduce employee absences and turnover – and increase productivity, reduce stress, and improve workers’ attitudes. In fact, a company-wide employee wellness program can actually save you money – $2.43 for every $1 spent!
- Offer full-coverage health care. QuickBooks found losing just one employee to frequent sick days or an extended absence can lead to significant productivity losses for small businesses. It can also damage morale since remaining employees have to pick up the slack. If you have more than 50 employees, you’ll need to shell out for employee health care plans under the Affordable Care Act. According to a report from U.S. Corporate Wellness, a commitment to an employee wellness program can result in a 20 to 55 percent reduction in health care costs.
- Be fully staffed for summer. Every dollar counts in a seasonal business. Are you fully equipped to meet customer and inventory demand this year? If not, you may risk falling short of your sales goals for the season. If you hire temporary employees, check with your accountant to set it up properly and make sure you train your staff well before busy season starts. Once the season is over, make sure you thank everyone for their hard work. A modest bonus or a nice dinner out go a long way in showing your appreciation. Who knows? If they enjoyed working for you, maybe they’ll come back next year — and reduce your training costs for the next peak season!
When it comes to hiring and cultivating top-notch employees, sometimes you have to spend money to save money. What could you do with all the money you save from healthy, happy team members?
Learn more about how an affordable term loan can help you grow your team and your local economy.
About Funding Circle
Funding Circle (www.fundingcircle.com/us) is the leading global marketplace for small business loans. We help investors lend money to great small businesses looking for fast and affordable financing to grow, create new jobs and ultimately accelerate economic growth. Since 2010, we have helped 40,000 investors lend more than $1 billion to 8,000 businesses globally. To date, we’ve raised $273 million in equity capital from the same investors that backed Facebook, Twitter, Airbnb and Alibaba.