by Ray Hayes
Small business owners are filling tons of job vacancies as a result of less federal regulations and tax cuts. A report from the National Federation of International Business (NFIB) indicated that in July 2018, small business owners added the most workers per firm since July 2006. Despite this positive, according to the NFIB, nearly one in four small business owners cannot find qualified workers making it one of the most important business problems in today’s economy.
The NFIB report conclude that, “more firms are looking for workers than workers looking for a job.” Most small business owners have even stated that if they had any extra capital they would use it to invest in employees. With small business lending steady increasing, we may expect a surge in hiring.
Patrick West, the owner of Be The Machine in NY, spoke about how his company will be investing in the near future due to the increase of small business lending. “The roller coaster ride of incoming and outgoing funds will never end, but a line of credit allows us to endure it without major worry. While our company has achieved profit and growth each year, I feel there is not enough time and resources out against future revenue streams. I’m too busy running a business to find new clients. We will dedicate a healthy amount of our money to new sales reps in the hopes they will succeed and give us a great return on our investment.”
Finding qualified workers for small business is already tight but when you add in paying them a competitive wage, in comes another problem. In an effort to attract more talent, owners are forced to compete with counterparts by offering higher wages. Some owners are also developing creative ways to level the playing field by offering bonuses, gifts, benefits, and paid monthly sabbaticals.
Michael Sims from ThinkLions provided another way his company is investing and competing with his competitors. “Over the years, we have found that by sponsoring our team members in new trainings, courses and educational opportunities, they are able to build their skills and abilities, which advances them professionally while immediately benefitting our business.”
As competition intensifies to attract the best talent, a borrowing strategy is a must and owners must make hiring a top priority while also publicizing employee training, advancement opportunities and other benefits that are not available at other companies.