With the unemployment rate sitting at under four percent, small businesses must learn how to attract, motivate and retain talent – and it’s not just about the money anymore.
This is positive news for business owners, especially when hiring employees under the age of 40. Millennial and Gen Z workers are more intrinsically motivated to find reward in their work, and that may or may not include monetary reward programs.
- According to a 2016 study, 84% of U.S. based organizations now use non-cash, socially meaningful ways to reward employees.
- A 2018 Harvard Business School study of 92,000 job ads concluded that life balance perks such as family-related leave, and personal and professional development opportunities attracted most applicants.
- Employee recognition such as personal hand-written notes from their boss was cited as a benefit as well as more inclusive cultures that offered employees more ownership, autonomy, and room for creativity.
What about medical benefits? Small business owners tend to believe that since they cannot afford these benefits, they also cannot afford the employees who rely on them. However, when small business owners offer a small monthly stipend earmarked for insurance premiums, many applicants are willing to walk away from more robust medical packages, especially those who do not have children.
Most importantly, when a company sees itself as a rewarding place to work, job applicants will view it that way as well. Believe in your business!
SOURCE: Inc.com, 2/18/19