People want more from their next job — real, tangible perks and compensation that values what they bring to a team. Ping pong tables and bean bags in the office (if there even is an office) not so much. No amount of cute perks can make up for a lack of real opportunity.
A great initial benefits package can get the best talent through the door to start. But keeping the best talent, pushing them to grow, and creating a mutually beneficial upward trajectory for both employee and company is the ultimate test.
The real challenge lies in retaining top talent and offering them compelling reasons to stay and grow within the company, rather than have them seeking opportunities elsewhere. With innovative recruitment strategies, plus progressive career development programs, even small businesses can build a loyal, engaged workforce.
SMBs must go beyond traditional recruitment
To attract the most talented people, small companies need to rethink their approach to recruitment. Traditional job postings and generic hiring practices are becoming obsolete. Job seekers expect more personalized and engaging recruitment experiences now.
Forward-thinking strategies that do just this have more chance of being successful in securing top-tier talent, as the way we job hunt, interview, hire, and work evolves.
Lead with pay transparency and a strong employer brand
Salary is typically the biggest drawer for most job candidates. Followed closely, if not jointly, by real work flexibility options. Being genuinely competitive in these areas — as well as being transparent about the offer from the start — goes a long way to define a company as having a culture that respects a candidate’s skills, experience, and ability.
It’s not fair or wise to expect jobseekers to look past inadequate pay packages in favor of elements such as weekly team socials, free fruit, or a cycle to work scheme.
Candidates also judge companies by how they brand themselves. By building a strong employer brand — whether it’s traditional, young, cool and modern, or bold in a trendsetting way — small businesses can bring new hires into the fold as part of the big picture, something enterprises simply can’t do.
Company culture is about action, not inclusivity statements
Company culture comes into play here too. You want to show that you’re inclusive and that you value employee wellbeing. But, this is something a company has to prove over time, from the hiring phase to onboarding and beyond. It’s the employees who will ultimately decide how they measure up on these important factors.
Is the company actually inclusive? What does the leadership team look like? Do the benefits just make things more fun, or do they support a variety of diverse employees? Things like parental leave that benefits both parents, adoption leave, flexible work hours, and remote options all do more to grow culture than mandatory company socials.
Get them in it for the long haul
Research shows that almost 95% of employees would stay at a company longer if it invested in their career development . To keep the best talent, companies must provide clear paths for growth and meaningful incentives. Here’s how to make a bold start with building a talent pipeline with longevity.
Clear career growth pathways and internal mobility
Career stagnation is one of the primary reasons employees leave companies. To combat this, organizations should create transparent career development plans, making sure employees understand how they can advance within the company.
Companies like Amazon and IBM have embraced this by offering programs that allow employees to transition into new roles or departments, encouraging internal mobility rather than external exits.
For example, Amazon’s Career Choice Program offers employees prepaid tuition and resources to pursue roles both within and outside of the company. This investment in their future not only enhances retention but also ensures employees feel supported in their long-term growth.
Continuous learning and development opportunities
With a job somewhere else always just around the corner, continuous learning is essential for keeping employees engaged and competitive. Companies that offer robust professional development programs are more likely to retain top talent.
In 2018, AT&T invested over $1 billion in retraining its workforce, providing its employees with online courses, certifications, and training in emerging technologies. As a result, employees felt empowered to grow within the company, and AT&T reaped the benefits of a more well-rounded, agile workforce.
The World Economic Forum’s Future of Jobs Report (2023) predicts that upskilling and reskilling will be critical in addressing future workforce challenges. By investing in development programs, companies can retain employees while equipping them with the skills needed to navigate industry changes.
Flexible work arrangements and real work-life balance
The global shift toward hybrid and remote work has made flexibility a top priority for employees. Now more than ever, a lack of flexible work options, such as remote work, or a lack of flexibility with start times push employees into the arms of other companies (ones that are serious about adapting to the future of work).
Companies that offer flexible schedules, remote work options, or compressed workweeks stand a better chance of retaining their top performers. Take Spotify, who’ve embraced a work from anywhere policy, allowing employees the freedom to work wherever they are most productive.
This level of trust and flexibility is increasingly a key factor in attracting and retaining talented professionals. A tech giant like Spotify adopting this approach likely means they’re getting ahead on something that will become the norm in years to come. For small businesses, which cannot afford to focus on outdated measures like hours worked at the expense of outcomes achieved, flexibility is the first step toward focusing on the prize.
Recognition, compensation, and purpose-driven incentives
While career growth and flexibility are vital, competitive compensation packages that advance with career journeys and growing meaningful incentives also play a significant role in retention.
Initiatives such as aligning compensation with company performance through bonuses or profit-sharing helps create a sense of ownership and loyalty among employees. These also incenvitize employees to give their best and strive to continuously, learn, develop expertise and new skills, such as management.
Think about it: at big companies, it’s easy to feel like another cog in the machine. Small businesses can go one step further by connecting employee performance to company growth and rewarding accordingly with recognition, bonuses, stock, and a host of other perks that make employees know they matter.
Tapping into the ‘bigger mission’ psyche
Employees who feel they are contributing to a larger mission are more likely to stay engaged. For example, Patagonia offers its employees the opportunity to take paid time off to work on environmental causes , linking their personal values with the company’s purpose.
These meaningful initiatives help to keep an employer and employee aligned on causes that are important to them both.
Maintaining positive career trajectories for talent
Retaining top talent isn’t just about offering benefits, though these are an important part of the process. Employees often want to feel they’re on a growth trajectory within an organization. This means creating a workplace where employees can imagine their long-term future, and see how their role can evolve.
Mentorship and coaching programs
Structured mentorship and coaching programs can play a pivotal role in employee retention. Mentors provide guidance, help employees navigate career challenges, and offer insights into future opportunities.
Companies like Google and General Electric have long-standing mentorship programs that pair senior leaders with emerging talent, helping to build a culture of knowledge sharing and career growth. At Remote, our marketing team has an internal marketing mentorship program, in which employees can train up their skills across the board. Content marketers can learn from product marketing leaders, or partnership team members can connect with campaigns managers. Again, the more small businesses give employees opportunities to grow, the more likely employees are to showcase their newfound talents at the company where they learned.
Employee-led initiatives and ownership
Creating an environment where employees feel a sense of ownership over their work can lead to long-term loyalty. Empowering employees to lead initiatives or contribute to strategic decisions can motivate them — their successes are now the company’s successes, and vice versa.
Spotify’s autonomous squad is a successful example of this. This scheme encourages their employees to take ownership of projects through a set structure, where teams have the freedom to innovate and drive their own initiatives.
Inclusive leadership and diversity initiatives
Companies that champion (internally, externally, and from the top down) diversity, equity, and inclusion (DEI) not only attract a wider pool of talent but also retain it.
According to McKinsey’s Diversity Wins Report (2020), companies in the top quartile for gender and ethnic diversity are 25% more likely to outperform financially. Inclusive leadership helps employees from marginalized groups tap into clear pathways towards career growth.
But diversity statements alone are not sufficient. If leadership teams don’t reflect diversity, and if benefits do not appeal to diverse groups, the company will necessarily attract the same type of people over and over. Make flexibility a core part of benefits, and a wider group of people with different lifestyles — parents and singles, city dwellers and rural remote workers, people of all races and genders — will feel they belong.
Building careers, not just filling roles
Small businesses that want to attract and retain top talent must go beyond traditional hiring and retention strategies, focusing instead on building careers with purpose, growth, and engagement. Companies with limited budgets can’t always compete on salary, but not everyone wants to work at a massive corporation. Any business that wants to go big must first lean into its strengths as a small player to attract and retain the right people.
Innovative hiring practices, combined with a deep commitment to career development, flexible work arrangements, and meaningful incentives, can create a workforce that not only stays but thrives for a small business looking to make it big.
Global growth simplified: How Remote helps TheyDo attract top talent
Remote has been instrumental in helping TheyDo , a globally distributed company, overcome the challenges of global recruitment.
By streamlining hiring processes and providing expert guidance on local labor laws, Remote enables TheyDo to tap into a limitless talent pool without compliance risks. Remote offers simple onboarding and payroll , allowing TheyDo to recruit top-tier candidates with speed and precision. This partnership empowers TheyDo to scale efficiently while focusing on innovation and building a world-class team.
“Remote helps us unlock unlimited talent pools, and having the best talent gives us the greatest chance of business success. They enable us to onboard quickly and seamlessly, providing specialist knowledge on local labor laws. This combination of expertise, speed, and quality creates a win-win situation for both the candidate—our new hire—and for TheyDo.” Matt Moralo Langan, Head of People
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