{"id":5214,"date":"2022-05-05T12:28:01","date_gmt":"2022-05-05T17:28:01","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/starting-a-business\/how-can-new-businesses-attract-retain-talent.html"},"modified":"2026-06-11T16:20:00","modified_gmt":"2026-06-11T21:20:00","slug":"how-can-new-businesses-attract-retain-talent","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/how-can-new-businesses-attract-retain-talent.html","title":{"rendered":"How Can New Businesses Attract & Retain Talent?"},"content":{"rendered":"\n
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How Can New Businesses Attract & Retain Talent?<\/h1>\n\n
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\n By FindLaw Staff<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
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Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n <\/div>\n \n

\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

New businesses can attract and retain employees by prioritizing worker satisfaction and effective management. This reduces the immense costs and lost time associated with hiring. Ultimately, a successful retention strategy fosters organizational stability, boosts morale, and maximizes long-term profitability.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

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In the past several years, it has become increasingly difficult for businesses to attract and retain talent<\/span>. Every day, U.S. employers spend $2.9 million<\/u><\/a> on finding and hiring new workers. This high turnover rate contributes to increased costs and hours devoted to finding and training new employees.<\/p>\n

With the growth of the internet and online work opportunities, many people in the workforce are turning to freelance work because of the freedom, growth opportunities, and personal benefits this type of work provides. Companies can do a lot to attract these workers by building strong financial foundations, creating a positive company culture<\/span>, and developing robust benefits packages<\/span>. If you recognize this trend and take active steps for employee retention<\/span>, you will save money and time, and generally become more profitable.<\/p>\n

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Make Your New Business Attractive to Winning Talent<\/h2>\n

If you want to attract and retain talent<\/span>, then you need to make your business appealing to prospective employees. People aren\u2019t just coming to you for a job. They are looking for a rewarding work experience, a healthy work-life balance<\/span>, and benefits. You can provide this by building a winning company culture<\/span>, creating an employee referral plan, and offering appealing perks and benefits to boost employee satisfaction<\/span>. And if you\u2019re just starting a business<\/u><\/a>, attracting talent is essential.<\/p>\n

Create a Winning Company Culture<\/span><\/strong><\/h3>\n

A winning company culture<\/span> is crucial. Your workplace culture<\/span> pervades everything you and your employees do. It is reflected in the language you use in your job posts and onboarding<\/span> materials, the way you conduct your meetings, and the events you host for employees.<\/p>\n

Focus on developing a positive company culture<\/span>. When you start your business, you should identify your company\u2019s values<\/span>. Then find ways to share those values with your employees. For example, if you value community, then promote group activities among employees to grow your company\u2019s internal sense of community. You can also incentivize employees to volunteer at local nonprofits<\/u><\/a>, which will improve your company\u2019s relationship with the people who live in the community you\u2019re based in.<\/p>\n

Make sure that you stand by your values. Your actions reflect those values and should further the development of a positive company culture<\/span>. Unless they work remotely, your employees will be spending at least forty hours per week at your workplace. You want to make them want to spend so much time there.<\/p>\n

Create a Referral Plan<\/strong><\/h3>\n

Encourage your employees to help find new talent. An employee referral program allows your employees to earn rewards when they refer qualified applicants to your company. You can benefit from your employees\u2019 professional and social connections, which can help you identify talent that you might not be able to reach otherwise.<\/p>\n

The rewards your employees can earn through referring new applicants can include cash incentives, extra days off, an extra-long weekend, or an employee event. Employee referral plans are also great for employee morale.<\/p>\n

Offer Appealing Perks and Benefits<\/strong><\/h3>\n

When a candidate first interviews for a position at your company, odds are that they are most interested in wages and benefits<\/u><\/a>. However, many employees are also interested in workplace benefits and perks that will promote a healthy work-life balance<\/span> or improve their mental and physical well-being.<\/p>\n

When setting up your benefits package<\/span>, be sure to offer competitive paid time off, including vacation time and sick days. You should also consider how much parental leave you will offer to your employees. Other possible benefits include health insurance, dental and eye-care insurance, and supplemental insurance.<\/p>\n

The perks you offer can help you stand out from other companies. For example, you can provide gym memberships or fitness reimbursements (this is especially important for remote workers) or offer monthly spa visits to promote relaxation and wellness. You can offer commuter assistance by providing help with gas costs. Tuition reimbursement would also help you stand out.<\/p>\n

Some companies have even begun to offer flexible scheduling. This lets your employees shift their daily work hours to when they work best. You could even allow for remote work<\/span> on certain days of the week.<\/p>\n

Employer-Employee Interaction<\/h2>\n

From time to time, employees will leave your company. They may have any number of reasons. But one should never be because their supervisor is toxic. A toxic supervisor can have a devastating impact on a workplace.<\/p>\n

An employer or manager dictates employees\u2019 schedules, assigns projects, and has a direct impact on workplace morale. Employees have little choice if they are forced to work with a toxic supervisor: they can either suffer in silence, or they can leave the company entirely.<\/p>\n

If you find this problem in your company, solve it immediately. If it continues, you will lose good people and potentially your good reputation. Few people will apply to work at a place with a bad reputation.<\/p>\n

Additionally, employees are interested in career growth<\/span>. You can retain employees if they see a career path<\/span> at your company. Create a mentorship<\/span> program and encourage hiring processes<\/span> that promote from within the company. You may also want to encourage professional development<\/span> by providing tuition reimbursement or reskilling<\/span> workers.<\/p>\n

Ensure that Your Company Is Financially Stable<\/h2>\n

Bad news doesn\u2019t stay hidden for long. If your company is struggling financially, then prospective applicants are likely to hear about it. If you want to attract new employees, as well as keep the ones you have, you will need to make sure that your business is successful.<\/p>\n

Pay close attention to your business operations<\/u><\/a>. Strengthen your company\u2019s financial health by improving your record keeping, putting a renewed effort into marketing and advertising, and making sound financial decisions.<\/p>\n

Get Legal Help<\/h2>\n

You may want to consult an HR professional<\/span> or business employment lawyer<\/a> to help create policies for attracting and retaining employees. Small businesses<\/span> benefit from low employee turnover which benefits their bottom line.<\/p>\n<\/div><\/div>\n\n\n

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