Small business owners have long been the lifeblood of the overall economic foundation in the United States, creating a disproportionate rate of hiring and accounting for a high percentage of gross domestic product when compared to larger enterprises.
Small business owners have long been the lifeblood of the overall financial system in the United States, creating a disproportionate rate of hiring and accounting for a high percentage of gross domestic product when compared to larger enterprises. Now, amid economic improvements, studies indicate that entrepreneurs continue to be the most active supporters in the jobs market, with one study from ADP affirming these individuals added more than 100,000 new employees in June.
These firms must remember that retention has to be a focal point of their corporate strategies, as failing to reduce turnover rates can be highly dangerous. Whereas larger enterprises often have the wiggle room to handle staff churn, small business owners do not have that same convenience, as budgets are generally tighter. More robust and targeted employee engagement strategies can ensure entrepreneurs keep their talented employees happier for a longer period of time.
Tips from a pro
Beth Miller, writing for Entrepreneur Magazine, recently suggested several ways in which small business owners can bolster the efficiency and effectiveness of their employee engagement strategies. Citing research from Gallup, the author pointed out that nearly three-quarters of the American workforce are not engaged, and that this costs businesses in the United States an estimated $300 billion annually due to hindered productivity.
Considering the fact that small businesses employ a slight majority of the workforce in this nation, it is clear that entrepreneurial firms need to step up with improved engagement and recognition programs. According to Miller, one way to do so is to start from the beginning, launching engagement initiatives that can be clearly seen by applicants during the interview and onboarding process.
She also recommended becoming a bit more honed in on communication, working to explain some of the reasons why engagement is important, or why recognition programs are in place, to employees.
Small business owners, especially those that are still new to the workforce management arena, might not fully understand how to properly cultivate an effective and advantageous recognition and rewards program for their staff members. Rather than blindly or erroneously trying to set these strategies up with a lack of real-world knowledge, entrepreneurs should consider using a professional service provider.
At the end of the day, this approach can lead to more direct financial advantages and higher returns on investment.
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