3. Be superior in recruiting and retaining employees.
Rudy Karsan, CEO, Kenexa.
Certain studies indicate that without migration, the United States will be losing more employees through attrition, namely retirement, and other terminations from the labor force versus new entrants coming into the work force.
Small businesses are going to have to be extremely vigilant about ensuring that their employee pool consists of highly effective individuals who are top performers in their organization and meet the values of their business.
In order to take advantage of this trend, I would recommend that the small business owner do a few things:
- Have strong measurement around employee performance. These measurements should be individually related to the various functions that employees perform.
- Develop measurement techniques to ensure that the existing work force is engaged, motivated, and willing to outperform customers' expectations.
- Learning is a primary drive for employees. Make sure that there are adequate vehicles through which your employee base can learn.
- Small business owners should make it incumbent that they meet with, on a face-to-face basis, every employee in the company. Suggested guidelines are: Less than 50 employees, meet at least twice per year; significantly less than 50, meet once a quarter; more than 50, develop other communication vehicles including written notes and e-mails to ensure a relationship exists between the leader and the organization.
Robert Hoffman, CEO & founder, HRAdvice.com.
According to Electronic Recruiting News, for the 15 years beginning in 2000, the number of 25- to 44-year-olds in the economy will decline from the 1999 peak. The decline will be steep, as there will be 15% fewer workers in this important age group than we have today.
Attracting and retaining the right skills, can be accomplished by practicing the following techniques:
- Determine the singular most compelling reason to join your company. Carve a recruiting niche similar to a product niche. Make sure everyone in your industry and geography knows the reason to join your firm. Determine what makes your business different from the rest and sell the concept to recruits, relentlessly.
- Use a skills assessment in the targeting and selection process. For example, if you need creative marketing plans, have candidates produce marketing collateral for you during the assessment process. Merely having the ability to describe marketing plans is not enough. Require specific examples.
- Develop networking relationships to identify the talent you seek.
- Treat your potential employees as customers. Return calls, get them excited about the position and company and use them to enhance the reputation of your business in the community.
- Create innovative attraction tools designed to promote retention, such as sabbaticals after five years of employment, subsidizing graduate degrees, or other non-financial incentives.
4. Gain access to capital by achieving customer traction, validation, and growing revenues.
Guy Kawasaki, cofounder, chairman & CEO, Garage.com.
The most important issue will be access to capital. Many innovative and growing young companies can't raise the capital they need to survive and flourish in this tough environment. Smart startups will do whatever it takes to get customer traction, validation, and, most importantly, significant and growing revenues. Revenues and customer traction are critically important to illustrate to potential investors that the company has tremendous potential and deserves an investor's attention and capital.
5. Spend more on technology.
Bradley D. Brown, chairman of the Board, cofounder, TUSC.
Accept and recognize that you (along with every business) are in the information technology (IT) business. Take advantage of this current time-standing-still moment and invest in IT and you will outpace the competition.
Lillian Vernon, founder & CEO, Lillian Vernon Corp.
The right computer systems offer companies of all sizes the opportunity to expand their business efficiently to save time and money. The key is to invest in state-of-the-art technology and good information technology professionals. You might need to hire an information technology consultant who offers a full range of services but be sure to check references carefully.
Glenn Weadock, president & cofounder, Independent Software, Inc.
Companies that can take a hard look at sophisticated computer and communications equipment and software and make decisions based on real world business needs will gain a leg up on companies that simply automate because they feel they must.
