Business structures and forming your business
Understand the differences between a Sole Proprietorship, Limited Partnership, Limited Liability Partnership, Limited Liability Company, S Corporation and Corporation.
As a business owner, it is essential that you attract good employees. Likewise, you’ll want to retain them as more knowledgeable, experienced and skilled employees likely means a more successful business. Further, when employees like what they do, it leads to higher employee job satisfaction and better customer service — the latter of which may give your company a competitive edge in the marketplace.
Bureau of Labor Statistics research reveals that the average American holds a little more than eleven jobs throughout their working years. This number is rising, particularly with the millennial generation. In light of this, a business owner needs to ask themselves: 1) how can they attract top talent to their company and 2) how can they encourage their employees to stay.
The answers to these questions will be found by addressing several factors, including the compensation package, company culture, management style and employee career development.
First, it is important for an employer to provide a fair compensation package to both attract and retain top quality employees. That said, it is obvious that an entry level employee would not expect to receive the same compensation package as that of a CFO. However, if two employees are performing the same jobs, have the same responsibilities and are performing equally, they likely expect to receive the same compensation.
A fair compensation package would include competitive pay and a benefits package that may include disability, health and dental insurance, vacation time, and other amenities such as flex vacation time.
Technically, a company’s culture is a combination of several factors including its values, visions, beliefs and habits. More informally, company culture relates to the level of acceptance, flexibility, teamwork and management supportiveness. The more satisfied employees are, the more they tend to get along better with their co-workers, and the increased likelihood that they will be happy to come to work each day.
When prescreening job candidates, consider if they appear to be a good fit for your company's culture. If not, there’s a good chance you will not see an optimal performance from this employee, and there’s a high likelihood you will not retain them either.
In an April 2016 survey "Should Leaders Focus on Results, or on People?", posted on LinkedIn by Dr. Travis Bradberry, good leaders were considered those that focus on results while exhibiting strong social skills. However, they show a balance of both.
For instance, only 14 percent of people surveyed said that leaders who are results-focused, but had weak social skills, were considered great leaders. On the other hand, 12 percent were considered as great leaders if they had strong social skills but lacked in focus. Perceived leadership abilities climbed to 72 percent when people had both qualities.
Employee retention and management style are crucial to the success of a business. Without an effective strategy for both, it can be more difficult to attract the right talent and reduce turnover.
You can involve your employees in the recruitment process and improve your management style by asking them questions to determine what it was that attracted them to your company, what keeps them engaged and what motivates them.
Employee Career Development
Staff development is also essential. This means it is important to provide training programs, educational opportunities and coaching to your employees. You can attract talent by letting potential employees know that your company will help them in planning their chosen path, setting strong goals and providing them with the support they need to achieve these goals. Doing this will increase engagement and retention.
Job satisfaction is the best thing you can offer your employees. When they are satisfied with their jobs and are happy, they are more productive and willing to do what it takes to help your company succeed. This is a win-win for everyone.
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