Small businesses are increasingly offering flexible working hours and pay transparency in a competitive talent market.
Tom Sullivan
Senior Vice President, Small Business Policy, U.S. Chamber of Commerce
Small businesses face plenty of challenges, especially when it comes to competing with larger businesses to attract and retain the best talent. Knowing what qualities to look for in a new hire — and having awareness of the latest trends around what workers value — can really pay off for a small business owner in a competitive market.
Recent research from the MetLife & U.S. Chamber of Commerce Small Business Index found that there are some skills that are highly valued by small business owners right now. Two in three small businesses say they are more likely to hire an entry-level employee if they have previous leadership experience. Many are also looking for applicants with knowledge or training in artificial intelligence (AI).
When it comes to attracting new talent, small businesses are employing a variety of offerings. The most popular things small businesses say they plan to offer to attract talent in the next year, according to the Small Business Index, are flexible working hours, listing the compensation of open positions, increasing pay, and offering sick leave.
Trend alert: pay transparency
Most small businesses (67%) are planning on offering flexible working hours, the most popular offering of those listed, but pay transparency is a close second, with 62% planning to list the hourly pay or salary range for each open position in the job description over the next year.
In just two years, the popularity of pay transparency has increased significantly, from just 50% saying they plan to offer this in 2023. It’s especially important to younger small business owners. Three in four Gen Z- or Millennial-owned businesses say they are likely to report plans to offer salary transparency. One in 10 small businesses says simply having young workers has increased salary transparency at their business.
What small business owners are saying
Here’s how members of the U.S. Chamber of Commerce’s Small Business Council are making their job openings stand out in a competitive talent market:
“We offer competitive wages and a robust benefits package, including employer-paid medical coverage, generous PTO, and matching 401(k) ontributions,” said Heleena Sideris, general manager of Park City Lodging in Park City, Utah. “Additionally, we prioritize professional growth by investing in employees through business coaching, company-wide strategic retreats, industry conference participation, and professional certification programs.”
“We offer flexible hybrid work schedules and will continue to do so, providing an office space but also allowing for work from home,” said Michelle Mekky, the president and founder of Mekky Media Relations in Chicago, Illinois. “We dedicate any extra profit to taking my team on a retreat for bonding and providing wellness events each quarter. My senior team has now been with Mekky Media for five to seven years, and I am proud of the stability we have created by continuing to evolve with the needs of the staff and putting our people first.”
