Most small businesses have major staffing challenges that can actually be managed with careful planning and action. These challenges arise from weaknesses that are inherent in the typical small business.
First, they cannot afford to compete with the larger companies for the most qualified employees. While a multinational company can afford to offer a fresh graduate an annual compensation package ranging anywhere from N3m to N7m, most small businesses will struggle to offer half of the figure at the lower end. This is not because small business operators are mean people. They simply cannot afford to pay much more. To complicate matters, small businesses may not be able to invest a lot of money in the training and personal development of their employees, compared to the larger companies. Thirdly, they are not able to offer long term job security because the future is too uncertain and the failure rate too high for that.
These are the three main reasons why most qualified job seekers will accept an offer from a multinational, even if it is for a lower position. The end result of this unfair contest for talent is that entrepreneurs often have to find their employees from a pool of less qualified, less competent or poorly trained job seekers because the preferred ones won’t even bother to submit an application.
My conclusion is that when it comes to staffing issues, the right question for small business owners and operators to ask is “why should anybody want to work for me?” It is not, “why can’t I find competent and committed employees?” The shortfalls are obvious and job seekers can see them.
Here are seven ideas that may help the small business owner or operator overcome the staffing challenges.
1. Develop a practical and employee focused value proposition that makes it clear to your staff what and how they will benefit (besides the take home pay) by working for your small business.
2. Consider offering profit sharing arrangements or even partnership or co-ownership of the business as a way of rewarding excellent performance.
3. Have a policy of treating staff with dignity and respect. This must include processes and procedures for employees to air grievances and to have them adequately addressed.
4. Include something that is important to your employees (not necessarily money) as part of your reward package.
5. Keep your management and leadership style as “impersonal” as possible, especially in your communication. Talk more about what the business needs and requires staff to do rather than what you as an individual want them to do or not do.
6. As much as possible ensure they get paid on time. Communicate as soon as you know there will be a delay in payment of salaries.
7. Ensure everyone has a job description and a clear career progression path.
END.
No comments:
Post a Comment