Attracting and retaining key employees is a pressing challenge for small business owners. Small businesses are uniquely susceptible to the loss of a key employee. This has been particularly true over the past few months during the Great Resignation, as employees reevaluate their current work arrangements.
According to a recent Allianz Life Insurance Company of North America (Allianz Life) study, the majority of small business owners said they have difficulty attracting or recruiting key employees (77%) or expressed concern about the loss of a key employee (77%).
Small businesses rely heavily on their key employees to grow the business, retain important business relationships, or provide specific knowledge or skill sets. The total compensation package offered to key employees is part of the employer’s value proposition to them. As part of this, small business owners can use compensation strategies and special benefits to help recruit, retain, and motivate key employees.
A financial professional can help small business owner clients assess different forms of compensation and benefits strategies to retain, recruit, and motivate the talent they need to succeed.
To determine what type of compensation strategy will work best for a small business and its employees, owners will need to define and prioritize their goals. A business owner who wants to sell in the next few years will likely benefit from a different strategy than an owner who is looking to expand into new markets.