One of the biggest barriers to success for small businesses is offering competitive compensation. Not being able to compete in terms of sheer money can severely limit the kind of talent you can hire, at least on paper. Fortunately, you can make up for it in a number of ways.
Undercutting the Tax Rate
Getting more money doesn't always mean keeping more money. For many employees, being in the right bracket is of utmost concern. They're always calculating the amount they get to keep versus the amount of work they have to do. You don't always have to push for the biggest numbers; sometimes, you just have to offer the right ones. Talk to an accountant and find out what amount would be best.
A Great Schedule
Small business and startups are known and feared for their hours. Crunch times can come at any given moment, which can result in high workloads and overtime. This can throw work-life balance out the window, and that's something no amount of money can make up for.
Offering a schedule that allows for the work-life balance -or at least makes attaining it viable - can tempt top talent into accepting a position at your small business. You don't even have to cut down on hours just to get them. Sometimes, offering the option to telecommute or flex hours can do the job.
Logistics doesn't just matter to your product and supply lines, it matters to your employees. Long commutes coupled with a high-cost of living can dissuade top talent from joining you. Putting up your offices in easy-to-reach and safe areas can be extremely tempting to the average employee.
Being in an easy-to-access place can make it more tempting to choose you over companies who offer higher compensation for many reasons. The cost of commuting, for example, may invalidate the value of higher pay. As an additional bonus, your employees will likely come to work happier than people who had to go shoulder-to-shoulder on the train.
Offer More Opportunities
Most of your employees don't have working for you as their end goal. They may like working for you, they might even like you, but chances are they've got something bigger planned. If you're smart and have the right connections, you can use that to your advantage.
A well-connected small business will not only get more opportunities for itself, but it can offer similar advantages to their employees. Offering less pay won't matter if you can prove that you can offer them valuable opportunities, such as work in a competitive industry or training opportunities under big names. Flex that brain and figure out what you have to offer that will help your employees be better.
Have Great Benefits
Money isn't the only thing your company has to offer. Benefits, like dental and medical, can often tip the hiring scales in your favour. Even a retirement account can make your small business far more appealing to potential employees than big companies who don't offer the same coverage.
Money isn't everything, but it is important. Even will all these, you may still end struggling to find great people to work for you. If your small business is struggling to work with what it currently has, considering finding more funding to help ease the load and compete with a bigger compensation package. Don't force the issue if it isn't working. Find solutions.