Small businesses need to flaunt their assets when hiring new employees

If you’re a small business, odds are you’re looking to staff up in 2014.

The question is whether you’ll be able to.

Start with those hiring trends: Companies with 100 or fewer workers are definitely feeling better about the year ahead, and that should mean more hiring, experts say.

Seventy percent of small companies are optimistic about what’s ahead for the economy and their business in the next 12 months, according to the Jan. 2 SurePayroll Small Business Scorecard. That was up from 55 percent a year ago. What’s more, only 12 percent of owners said they expect to see less business early in the year. Half forecasted growth.

Put it all together, and those sentiments could mean more full-time small-business hiring this year, SurePayroll President and CEO Michael Alter said.

Bill Werksman, managing partner of Las Vegas staffing firm Resource Partners, agreed small companies will be in the mood to recruit in 2014.

“They’ll hire a bit better than they did in 2013. I think the overall mood of the economy is a little bit better, and there’s more optimism in terms of the marketplace,” Werksman said. “Especially in Las Vegas, a lot of service-related businesses are doing very well and starting to see a little bit more of an upward climb in revenue.”

But does your small business have what it takes to compete for the people who will help it grow? It’s not easy to stand out when you’re competing for the best workers against some of the nation’s biggest companies. After all, they have benefits to spare — everything from retirement plans with corporate matching to fully stocked employee cafeterias. They’re also likelier to weather the storm and stay in business during economic downturns. That safety appeals to a lot of potential employees.

All of that doesn’t necessarily mean your smaller firm will lose out in a head-to-head battle for a job candidate. Small businesses have their advantages, but you need to know what those edges are, and how to play them up when you’re recruiting.

“It will be tough, but I think small businesses have a unique value proposition they can make to candidates,” Werksman said. “A big company is not for everybody. A good percentage of Americans — maybe 80 percent to 85 percent — work in smaller companies, so smaller businesses are something a lot of people are attracted to.”

Here’s how to start reeling in the catches that are best for your business.

First, it may go against the grain of your more casual workplace, but you need to get more formal when you’re looking for new employees, Werksman said.

“Small businesses struggle with the mechanics of hiring because oftentimes, their process is informal. So try to get some formality,” he said. “Try to have a great job description written. First and foremost, you have to truly understand the exact skills set you’re looking for.”

Once you’ve nailed down the specifics of your job opening, understand how you can be different from a big operation, and look for ways to play up those differences when you’re interviewing — especially if you’re going after younger workers.

“The workforce is evolving, and younger generations moving into the workforce are much more entrepreneurial than employees historically have been,” said Justin McVay, director of the UNLV Startup Center. “They don’t necessarily want that job and pension, with the idea of retiring in 20 years. They get more satisfaction from knowing they make a difference.”

Tops among the intangible benefits of working for your small company? Flexibility.

Big companies have “playbooks” they have to follow to the letter with each worker on everything from vacation time to holiday pay, McVay said. A small firm, on the other hand, has more leeway with individual workers on perks such as flextime, telecommuting and paid time off. Your smaller company could even allow employees to bring their dogs to work on Fridays, for example — a move that few big corporations would ever entertain.

Employees with small operations also have a direct line to the owner, CEO and other key people, McVay said.

“You’re not burdened with the hierarchies of bureaucracy, or of supervisor upon supervisor,” he said. “You can offer accessibility to leadership, and the ability to be nimble and make decisions quickly. Your employees can come directly to you and have a discussion about important decisions. Being able to walk into the boss’s office any time and get a ‘yes’ or a ‘no’ from the head person is really important to many job seekers.”

With that access comes the opportunity to make a difference every day.

“People have a larger stake in a smaller company or startup,” McVay said. “They can actually see on a day-to-day basis the fact that they’re making a large difference in the company. If you have three or five employees, each person is drastically making a difference to the success of the company. That may be more difficult to see when you’re part of a big corporation.”

Working closely alongside a few people also fosters a “collegial atmosphere, closeness and loyalty,” Werksman said.

All of those benefits mean nothing if you can’t get them across to potential hires. So Werksman recommended doing some work up front during an interview to understand which extras appeal the most to an individual candidate. Skip the standard questions about biggest flaws and best results, and ask instead what the candidate wants.

If she says she wants to feel like she has a voice in the operation, let her know that you’re able to listen to all of your employees. If a single dad wants to be around more for his kids and save on child-care expenses, talk to him about telecommuting.

And don’t be subtle about any of your perks.

“It’s best for a smaller business to hit the candidate over the head with this information,” Werksman said. “A smaller company has to understand they’re being interviewed as much as they’re conducting an interview. Get those benefits out on the table early on with candidates, and make sure they’re very evident in the discussion about your company’s atmosphere.”

Finally, don’t assume you can skimp completely on traditional benefits just because you can guarantee a little flextime. Most candidates still expect to see basic health coverage and paid time off, even if they’re weighing an offer from a small company, McVay said.

You can find affordable ways to provide those benefits, he said.

Join a local chamber of commerce that buys health insurance as a larger group to find more affordable premiums, for example. Or sign up with a professional employer organization, which handle outsourced HR tasks for small firms. Through a PEO, you can get your payroll done, buy health insurance and even get help with hiring, training and development of company policies.

Also, consider offering strong candidates an equity position in your company, McVay suggested. It doesn’t have to be much — even 2 percent or 3 percent could mean a lot to a worker with an entrepreneurial bent.

“An equity stake can mean a return on investment of time and energy for the candidate,” McVay said. “And it’s something you wouldn’t necessarily see in a big corporation unless you’re a higher-level executive. For someone to know they have a vested interest in the success of your company would certainly add to the overall compensation package.”

Contact reporter Jennifer Robison at jrobison@reviewjournal.com. Follow @J_Robison1 on Twitter.