There have been times in recent history where finding quality workers has been more difficult. People are quitting their jobs across the board and many industries are wildly understaffed. The conventional wisdom is if you can’t find the right workers, increase the pay and better workers will come along. But what do you do if you simply can’t afford to pay any more? Here are three strategies you can use to attract employees when you can’t afford to pay more.
Allow Flexibility
If you can’t pay more, you need to offer other amenities and benefits that other jobs don’t offer. One of the best things you can offer is flexibility. If you allow your workers to choose their own hours, or set their own schedule, they have a lot more autonomy in choosing how they fill their day. This type of freedom with work can make it easier to find employees willing to work for less pay. When you give your employees greater flexibility to choose their hours, workdays, and days off, you are allowing them to be in control of their life, and that independence and freedom can be worth the lower pay for many people.
Offer Equity Compensation
Another option to offer employees rather than more money Is to offer equity compensation. Equity compensation is when you give your employees stock in the company instead of more pay. This helps keep your workforce engaged in the business, as when the business succeeds, their equity will be worth more. Many startups use equity to attract new employees and partners. The idea of giving employees stock in the company as part of their compensation package can be very attractive for employees, particularly those who see your business growing and succeeding. They will then have a vested interest in your businesses success and are likely going to work harder to bring that to fruition.
Offer Generous Benefit Packages
If you can’t offer money, you should try to offer generous benefit packages. Match 401k contributions, offer quality health and dental insurance, and even offer more vacation days, more parental leave, and more sick days. When employees feel that their needs are being taken care of, they may be more willing to forgo a higher salary to work for your business. The better your benefits are, the more attractive you will be to employees.
Hiring is never easy, and in the current labor market, it may have never been more difficult to attract quality employees. If you can’t offer a higher wage, then you may feel stuck behind. But try these three strategies to make your business more attractive to employees without raising your pay and see the impact it can have on your ability to hire quality employees.
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