Are These Three Small Business Challenges Keeping You Awake at Night?
Running a business has never been for the fainthearted, but some of the challenges of doing business can be particularly daunting. I recently spoke with Julie Arzonico, Senior Director of Market Insights at ADP, about the results from the "ADP 2015 Midsized Business Owners Study" and the business challenges faced by midsized companies. Although I spend most of my time writing about small business, after talking with Arzonico, I recognized similar themes I often hear when speaking to small business owners.
Employee Engagement
ADP defines employee engagement as, “[A] workplace approach designed to ensure that employees are committed to their organization’s goals and values, motivated to contribute to organizational success, and are able at the same time to enhance their own sense of well-being.”
According to the "ADP 2015 Midsized Business Owners Study," 76 percent of responding business owners were concerned on whether or not they were successful at meeting the goal of an “engaged” workforce.
“Only about half of the people we surveyed felt like their organizations were doing ‘extremely’ or ‘very well’ at engaging their employees,” says Arzonico. “Younger workers in particular don’t respond well to the ‘you’re lucky to have a job’ mentality and ignoring employee engagement has the potential to hurt many businesses. As a result, this is top-of-mind for many business owners.”
Although Millennials get called out for expecting something more in the workplace, I think workers of every generation want to feel like what they do matters to their companies—as well as gives them an opportunity to grow their own careers. Most people want to contribute to something meaningful, but they also want to do something that contributes to a rewarding life and career.
How do you know if you have employee engagement issues? Do you have a higher-than-average employee turnover? If it feels like you have a revolving door of employees coming and going, it could be a warning sign that you need to work on engaging them.
Improving Employee Engagement
Over the course of my career, I’ve come to appreciate that most people want to do a good job and be successful. Doing that requires they know how you define what doing a good job includes.
It’s also important to make sure you don’t unknowingly hinder your employees' ability to engage by creating processes or an atmosphere that demotivates employees. Most people want to understand the value they create, have a little bit of autonomy when it comes to how they do their jobs and whom they work with, and want to feel appreciated for what they do.
Talent Management
Talent management—or in other words—finding, hiring, and keeping the best talent is a concern to these business owners. Roughly half of those surveyed expressed concern over finding the right people. And, less than 20 percent feel confident they have the right tools to find, grow, and retain talent.
Although about the same percentage are “completely confident” they have the tools they need to find and keep the best talent, that’s a relatively small group. I don’t think it matters whether you are a midsized business or a small business, finding and keeping the right people can often make the difference between a business that is thriving and one that struggles.
“There seems to be a disconnect between what [a] workforce needs and what’s going on within their businesses,” says Azonico. “Most business owners would argue their biggest asset is their employees. To keep and grow your best talent, you need to focus on the workforce.”
Finding and Keeping Your Best Employees
Keeping your best employees doesn’t depend on how much you pay them, but it’s part of the equation. It’s also about making sure they understand how their efforts contribute to the success of the business, giving them opportunities to learn new skills, allowing them to make decisions within the realm of their role, and recognizing them for the value they provide. If your employees can see a future career path with you, they will be less likely to go looking for another opportunity where they think the grass might be greener.
It’s also important to stay up-to-date on industry trends, know what companies like yours are doing to keep their best employees, and identify who your key people are. Watch for signs that these employees might be considering a move so you can take proactive measures to keep them. You can offer a raise, additional responsibilities, a new job title, or additional training or leadership opportunities. Investing in your employees shows them they are valued and appreciated.
Compliance
Compliance is a big concern for many small businesses. Government regulations and new government mandates can be stressful for many business owners. What’s more, it also introduces a level of uncertainty that can be unsettling to small business owners seeking to be compliant.
Jeff Stibel, Vice Chairman at Dun & Bradstreet, suggests the real threat to small business growth isn’t the current state of the economy or the threat of another recession. He says, “It’s uncertainty."
According to the ADP report, “Complying with government regulations is a tough job, even for large organizations with the best resources. For midsized businesses with limited resources, facing compliance fueled by increasing layers of regulatory complexity can have a direct impact on profitability.”
This also applies to small business owners and is a concern for them too.
