Brian Calley President and Chief Executive Officer at Small Business Association of Michigan | LinkedIn
Brian Calley President and Chief Executive Officer at Small Business Association of Michigan | LinkedIn
Finding and retaining employees has become increasingly challenging for small business owners. Despite offering attractive workplaces, many struggle to attract the desired applicants, which impacts their businesses and morale. Phrases like "No one wants to work!" and "Why are only 'losers' applying for my job opening?" are common among frustrated employers.
Michigan faces a unique situation with a stagnant or declining population since 2001. As of July 2023, the state's population was nearly 40,000 fewer than in 2020, reverting to early-2000s levels. During this period, Michigan's government, healthcare, and education sectors expanded by adding 40,000 jobs between March 2023 and March 2024. This leaves fewer candidates available for small businesses.
Another concern is the number of working-age individuals who either aren't working or are minimally employed. Some can sustain themselves with freelance work or government subsidies without seeking full-time employment. Additionally, high childcare costs often force one parent in nuclear families to leave the workforce.
Blaming these groups isn't productive; instead, small business owners must find effective strategies to hire reliable employees who will stay long-term.
One crucial step is advertising job openings effectively. The traditional method of placing help wanted signs is outdated. Job postings should be treated as advertisements that highlight why someone should work for your company. Online platforms allow detailed descriptions without the cost constraints of print ads from two decades ago.
Prompt responses to applicants are also essential. Delaying communication can result in losing potential hires to other employers who respond more quickly.
Transparency during initial conversations about expectations such as work hours, benefits, pay, and promotion opportunities is vital. Misleading applicants can lead to mistrust and higher turnover rates.
Hiring based on current needs rather than future aspirations is another key point. Employing overqualified individuals or those lacking necessary experience can lead to dissatisfaction and poor performance.
Despite the competitive job market with limited qualified applicants, new workers continue moving into Michigan annually while others frequently change jobs or re-enter the workforce after leaving it temporarily.
Small businesses need dedicated efforts—spending five to ten hours weekly per position—to ensure employees are well-trained and engaged. Defining roles clearly, setting honest expectations upfront, aggressively searching for new hires consistently following up promptly will give an edge over competitors struggling with staffing issues.
"By Jason Verlinde; originally published in SBAM’s September/October 2024 issue of FOCUS magazine."
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