Once a week, BizEngine will deliver a roundup of small business news and advice from around the nation.
Recruiting Costs High For Small Businesses
You may have suspected that you spend more to find the ideal employee than large corporations with their cash-inflated muscles. If you have, you’re correct.
The Wall Street Journal reports that companies with over 10,000 employees pay about $1,949 per employee. That’s a little more than half of what mid-sized and small firms pay, which is in the range of $3,600. That’s a pretty staggering difference.
What’s behind it? It’s pretty easy to explain, actually. Smaller businesses are less likely to have sizeable hiring and recruiting departments, forcing them to outsource some aspects of their hiring processes. If they don’t, their handful of employees may have to put in significant overtime or purchase software solutions that allow them to more easily process applicants. Those costs add up quickly compared to at large businesses, which usually have large human resources departments and can sift through potential hires with greater ease.
There’s more interesting stuff in here—did you know that manufacturing jobs cost an average of over $6,000 to fill?—but it’s the small business impacts that I’m most interested in. It turns out that hiring an extra HR employee or two might save you significantly over the long haul.
Giving Small Business Saturday A Boost
This year’s Small Business Saturday was a success. It just wasn’t as big a success as many had hoped for.
That’s reflected in this new Portfolio article, in which author J. Jennings Moss—not the editor from Spider-Man, sadly—recounts his own experience at Small Business Saturday in New York City. He found a largely disinterested public, deals that weren’t incredibly compelling and a lack of a major marketing push from anyone besides American Express.
There are smart ideas in this article about making the unofficial holiday, which was in its second year, a little more enticing. I particularly like this one:
Do a better job of identifying participants. All the general promotion in advance won’t mean anything if you don’t know where to go for the deals. And barring some local media outlets’ listings, there wasn’t any central spot online to visit to find out who was offering what specials. The Small Business Saturday website, which was the work of American Express, had no such functionality.
It’s an excellent point. This was supposed to be a unified, nationwide kind of movement, but it ended up feeling rather insular. If advertisers and merchants made an effort to pull it all together in some fashion—Moss suggests block parties, but that’s just one possibility—then next year could be much bigger.
I’ll be interested to see what Small Business Saturday looks like next year. If they add fireworks, I’m there.
Last week, we interviewed small business marketing expert Patrick Strother. If you missed it, get caught up on some great nuggets of wisdom right now.