Hiring top talent is one of many ways to succeed in business.
But, for small business owners, it might be the wrong way.
Instead of chasing after top talent they can't afford or compete for, small business owners should focus on finding and hiring the excellent talent they can nurture and retain.
This way, they can build a solid foundation for their business and achieve their goals without breaking the bank.
Everyone knows that hiring top talent is crucial for the success of any business. But everyone also knows that hiring top talent is expensive and competitive, especially for small business owners with limited resources and fierce competition from larger companies.
According to a survey by Indeed, 61% of small business owners struggle to find qualified candidates for their open positions, and 42% say that salary expectations are the biggest challenge in hiring.
According to a report by Glassdoor, the average salary for a software engineer in the US is $103,000, while the average revenue for a small business is $388,000. Hiring one software engineer could cost more than a quarter of a small business's revenue.
So how can small business owners attract top talent without breaking the bank?
The answer is simple: they can't. And they shouldn't try to.
This sounds harsh and discouraging.
No one wants to admit they can't afford to hire the best people for their business.
No one wants to give up their dreams of growing and scaling their business.
According to a study by Harvard Business Review, 72% of entrepreneurs are optimistic about the future of their business, and 57% expect to increase their workforce in the next year.
But staying silent and ignoring the reality of the hiring market is not helping anyone. It's only leading to frustration, disappointment, and wasted time and money.
If small business owners continue to chase after top talent they can't afford or compete for, they will end up with one of two outcomes:
They will hire someone overqualified and overpaid.
They will hire someone under-qualified who under-performs.
Either way, they will lose money, productivity, and morale. They will also lose the opportunity to hire someone who is a better fit for their business and culture.
So what can small business owners do instead? They can focus on finding and hiring good talent rather than top talent.
If small business owners shifted their mindset and strategy from hiring top talent to hiring good talent they can nurture, they would see many benefits:
Find more candidates who are qualified, motivated, and loyal.
Offer more competitive and realistic compensation packages.
Build more robust and happier teams that share their vision and values.
Ultimately, they could grow their business faster and more sustainably.
They would also contribute to the economy and society by creating more jobs and opportunities for people who are not necessarily at the top of their field but are still capable and willing to learn and grow.