This scene is likely to play out at many small businesses in the coming months: One of the company’s top performing employees comes in to see the owner and says, “I’ve been offered a job at XYZ Widgets. They’re going to give me a substantial raise. Can you make me a better offer?”
Many owners will be hard-pressed to come up with money to keep staffers who want to leave for better-paying jobs. But small companies can win a bidding war by offering more intangibles and flexibility than their larger competitors.
A Job Is Not Just About Money
Rob Wilson, president of Employco, a Chicago-based resources outsourcing company, said his small business clients are starting to see employees recruited by larger firms. And many small businesses still have tight cash flows, making it hard to give a big raise.
What they can offer, however, are non-monetary benefits such as flexible scheduling and more vacation time. Wilson noted that many people start new jobs with a minimum of vacation time. A current employer can use extra vacation time to be competitive.
But, Wilson said, there are other benefits that will appeal to ambitious employees, including the chance for professional growth. Wilson said owners need to point out to employees that because they work for a small business, “you are much more involved than you would be with a larger company.”
Wilson said workers also need to know what their roles will be as the economy improves and business picks up. He recommends telling an employee, “you’ve helped me through the last years, getting through the recession. You’re a key person. Help shape the future.”
Leza Raffel, president of The Communication Solutions Group Inc., a Philadelphia-based public relations firm, has had such a talk with a senior staffer who was considering what her other work options might be.
Raffel talked…