Small Business Month in May and Small Business Saturday — the “shop small” holiday that falls on the last weekend of November — are annual celebrations of small retail businesses. They aren’t all about profit, though. They also help strengthen community ties and customer relationships.
While nonretail businesses may not have their own day, they also need to build customer loyalty and satisfaction, which means they need enthusiastic, committed employees to support them. However, keeping workers engaged and motivated is a persistent challenge for many managers of small and midsize businesses.
If you’re a small business employer struggling with this issue, here are some ways to show your employees how much they matter — and remind them why working for your organization can be rewarding for them, too.
A well-crafted employee engagement strategy is essential for sustainable growth and long-term success. Engaged employees are more likely to be invested in their work and more committed to organizational success. For small businesses, where every team member plays a critical role, fostering engagement is not only a driver of performance but also a key factor in building resilience and a positive workplace culture.
Many workers today expect employers to provide hybrid and remote work options. These arrangements can improve employee engagement and drive productivity. They can also help your small business attract and retain top talent, in addition to boosting employee morale.
If your business model can’t support hybrid or remote work, consider other arrangements such as flex time, which allows workers to determine when they start and finish their workday. Even a small adjustment in hours can make a commute smoother, a school pickup less rushed — and an employee happier.
Another option is increasing salaries for in-office workers. For roles that can be performed remotely, more than 60% of small business managers now offer higher starting salaries to new hires willing to work in the office, either full- or part-time. Offering pay raises shows employees how much you value in-person collaboration and appreciate their commitment to work on-site.
Providing competitive pay is critical to driving employee engagement — and retaining a loyal workforce. Do your research to find out what your competitors offer, and make sure you’re paying the market rate or higher. (Most likely, your employees have already done their homework, too.)
Regularly benchmarking your salaries and making adjustments can help employees feel they are being fairly compensated, keeping staff retention and engagement high. For insight, you can consult Robert Half’s latest Salary Guide, which reports national average starting salaries for hundreds of positions. And our Salary Calculator can help you localize figures for your area.
Perks are those extra frills that help distinguish you from your competitors in the minds of your employees and show appreciation for their hard work. You don’t have to reach for extravagance when creativity can be just as effective. A monthly subscription to a popular entertainment streaming service, a subsidized gym membership, or an office- or home-delivered lunch on the last Friday of the month are all modest investments that can bring a smile to a worker’s face.
An employee recognition program is another way to help buoy employee morale. Numerous studies confirm that workers who receive recognition are much less likely to be burned out, and more likely to be engaged and loyal. So, take time to spotlight staff for specific achievements. Whether it singles out the accomplishments of one worker or an entire team, public recognition for a job well done should be a part of any workplace culture. Even a personal note from senior leadership can go a long way toward helping employees feel like they make an impact.
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Another way to keep employees engaged is to help them visualize their future with your company. Provide clear pathways for career growth, from promotions to skill-building opportunities, and regularly discuss professional development with your employees. Talk with them directly about their individual career goals and discuss strategies to help them advance toward them.
Keep in mind that professional development is a win-win. Here are a few ideas to try:
Financial support for learning: For the truly industrious employee, one who’s willing to give up their evenings or weekends to study, consider offering reimbursement for college tuition or professional certification fees. If the budget for your small or midsize business can’t support these options, look for affordable group memberships at LinkedIn Learning or other e-learning training sites. Training can serve a dual purpose when you invite employees to share what they learn with other team members (however, don’t make it a requirement to receive the training).
Cross-training: No matter the size of your business, cross-training is a smart practice. Training staff in roles not typically assigned to them allows employees to gain skills and experience. They can also get an inside look at jobs they might be eyeing but are uncertain whether they want to pursue. Cross-training also gives your organization the backup it might need when someone is out for an extended period.
Mentoring: Sometimes, the best resource for learning and development is just down the hall. Ask your most seasoned employees to share their knowledge with colleagues, either through organized training sessions or continuous mentoring. If you can, give them a bonus or some other reward for the extra investment of their time.
Many consumers are passionately loyal to small businesses. They value the personalized service, uniqueness and community roots these companies display. That smallness, that intimacy, should be reinforced as part of your company culture.
Your team members already know how to make a client’s day, whether it’s a prompt and tailored response to a service request or simply remembering the client’s first name when they interact. If a customer is delighted, make sure all your team members hear about it. Praise employees when they accomplish something a bigger firm would struggle to handle. Instill pride in your staff by reminding them why a small or midsize business is a great place to work.
If you know how to manage employees in a way that helps them become more customer-centric, you can see many positive returns for your efforts, including a good business reputation and repeat customers.
Many successful small businesses cultivate a “family” feel that keeps employees connected. You can foster a collaborative and welcoming environment that recognizes everyone’s unique point of view to keep employees energized and engaged.
Create opportunities for team members to get to know each other outside of work. Host a pizza party, schedule a Zoom happy hour, or sponsor an employee networking group, after-work club or sports team to help people bond on a personal level. Social activities are especially important for remote workers who may miss out on in-office conversations or activities that can help employees feel like part of the team.
Don’t underestimate what you can do to improve engagement and boost employee morale as a manager. By and large, workplace culture is an organic, amorphous order of attitudes, practices and values. It can’t be codified, nor can it be created and imposed by a firm’s leadership. But company policies, a strong employer brand and your personal behavior can influence the culture of your small or midsize business and how employees help to shape it.
Demonstrate support, inclusivity and empathy through your own actions. Give your employees a sense of empowerment. When workers can make decisions on their own or with minimal direction, they will feel more invested in their roles and responsibilities.
Don’t let your employees slide into burnout. Instead, enthusiastically promote the importance of maintaining a positive work-life balance . If an individual or team is struggling to meet an important deadline, either bring in contract professionals to help or put aside your own work and pitch in yourself.
Mastering how to manage employees in a small or midsize business successfully includes understanding what strategies work best to boost employee morale. There is no one-size-fits-all approach, unfortunately. What works for a small legal practice might not fly at a fast-growing accounting firm or a boutique marketing agency. But you can quickly make a great deal of headway by showing your team your appreciation, respecting their needs and limits, and offering them engaging and meaningful work.
