The 2019 Small Business Growth Index of Capital One reveals the strategies of small businesses in the U.S. to best recruit and retain top employees.
The first strategy is to provide competitive compensation. According to the index, 76% of the respondents said they are providing competitive or industry leading salaries. They are also paying fairly, with 81% saying they have no gender pay gap.
The second is offering generous employee benefits. The survey found that 47% of business owners are providing more employee benefits and 43% are marketing their business as a great place to work. It was also found that millennial business owners are more likely to offer more benefits compared to Gen X and Baby Boomers.
A related study by Pentegra titled Millennial Benefits Trends Report reveals that 97% of employees consider benefits when applying for a job, with 39% rating 401(k) plans as “extremely important.” From the HR side of the survey, 64% of job applicants rated health insurance and 55% rated vacation as “extremely important.”
The third is providing flexible schedules and work spaces. The 2018 Work Environment Survey found that 58% of employees expect flexible working hours from their next employer and 73% said a flexible schedule is in their top two reasons for staying with a company. The study also found that 83% of employees said they have their best ideas when working in flexible space options.