Organizations as of now, amidst the global competition are looking to increase their market share and to improve their market competitiveness through expanding their portfolios. Business enterprises are facing challenges of launching new products and services every other day and therefore one can see a direct impact on demand for talent across a number of key disciplines. Especially for small and medium sized businesses recruiting and retaining top employees is a major cause of concern for these organizations. According to the Arthur J. Gallagher & Company Survey, the second largest challenge that employer participants reported was attracting and retaining a competitive workforce.
According to CHASE survey, about 29% of employers were extremely concerned about the limited supply of skilled candidates. Some of the strategies these employers adopted to retain their top employees included the offering of higher wages or compensation to the targeted candidates. The survey also revealed that small business enterprises are also about two and half times more willing to accept lower skill sets at a lower wage to secure talent in place. There exists alternative ways for small businesses to recruit talented employees such as including employee referrals, adding a career site to the company webpage, advertising on online job boards, using social media to recruit employees etc.
There also exists alternative employee retention tactics or strategies such as creating a high feedback environment, customizing benefits strategically and boosting employee morale. In addition, small-scale businesses face enormous challenges in finding new customers as they lack astronomical budget that larger corporation do. As a result, lack of budget does hinder them when trying to compete with larger companies for implementing corporate advertising and marketing strategies. The problem of recruiting and retaining employees is more severe in the case of IT companies where there already have a higher percentage of attrition and lack of talented employees.
The role of staffing agencies or firms is quite important such as in helping organizations in bringing the right talent to these organizations and in providing different staffing solutions to help them in retaining the talented or top employees. On the other hand, employer brand also plays a crucial role in attracting new staff to business. It also ensures that the existing workforce is fulfilled and the employees are productive and committed in achieving success for their employer or organization.