Small Businesses Hope to Overcome a Challenging Hiring Landscape in 2023
By Adam Groth, VP of Digital Strategy
This year, more than two-thirds of small-business owners say they are having a tough time finding qualified employees to fill job openings. Unfortunately, the ongoing labor shortage has put small businesses in a tough spot, creating a problem that isn’t likely to go away anytime soon. As we move into 2023, business owners will continue to grapple with how they can stay fully staffed in order to keep the doors open. A number of sources find the following three strategies helpful for small businesses as they navigate the challenging hiring environment in the new year:
- Rethink employee recruiting practices. Eighty percent of all job searches are conducted online, 85% of positions are filled through networking and 50% of employment applications are from job boards. Small businesses need to cast the job net far and wide to compete with larger companies and reach more qualified candidates. Today’s digital platforms can help businesses post multiple openings based on their specific requirements for a job, saving time and money by bringing qualified applicants to the business.
- Start a referral program. According to Recroot, 45% of job candidates who come to a business by way of an employee referral program typically stay at that job for four or more years. In addition, 71% of U.S. employers say they rely on staff referrals to bring them the most qualified individuals. And recruiting has been shown to shorten the job search process from the typical 40 days to just 13 days. An employee referral program is a recommendation system that rewards current workers who refer new candidates to their employer. Compensation can involve various incentives ranging from time off to signing bonuses.
- Consider hiring independent workers. Independent contractors, free agents, consultants or freelancers — whatever the label, these self-employed individuals can be an affordable way for small businesses to get the help they need without having to hire full-time employees. Independent workers are ideal for small businesses that need workers immediately, need to fill a position with someone who has special skills/training, only need help for a specific period of time (e.g., a special event, during the holidays) or need to help fill a gap while seeking a full-time employee for a position.
“ ... 45% of job candidates who come to a business by way of an employee referral program typically stay at that job for four or more years. In addition, 71% of U.S. employers say they rely on staff referrals to bring them the most qualified individuals.”
Where larger companies may be in a better place to attract and retain workers with higher pay and more attractive benefits packages, small businesses are in a different position. And while there isn’t a one-size-fits-all solution for responding to and recovering from the ongoing labor shortage, there are strategies your small-business owner clients can consider.
Builders & Tradesmen’s Insurance Services Inc.
At Builders & Tradesmen’s Insurance Services Inc. (BTIS), we have several small-business-preferred classes underwritten by multiple A-rated carriers. If you are a broker with small-to-medium-sized business owner clients, we invite you to learn more about our programs that feature a variety of coverages to fit their individual needs.
For additional information, visit www.btisinc.com or call (877) 649-6682