Viewpoint

Viewpoint VIEWS, PERSPECTIVES AND READERS’ LETTERS

Are you giving employees something they care about?

By Austin Harley

Small businesses are in trouble.

In the past two years, we’ve all experienced delays in product delivery, reduced operating hours at a favorite business and store fronts with help wanted signs lining in their windows. If you spend time talking to business owners, you’ll hear about the same thing from all of them: employees are leaving their jobs at alarmingly high rates, and it’s plaguing the business’s ability to grow and, in some cases, survive. Small businesses especially have been affected by the pandemic, by the instability of the supply chain and record high inflation, by competition from large retailers offering products and services that a small business simply cannot compete with, and the list goes on and on.

But I do not believe that pandemic fallout is the biggest challenge facing employers today. The inability for our small business owners to find, hire and retain quality employees to complete the labor-intensive task of keeping a business running efficiently and effectively is one of the most catastrophic problems they face. The Great Resignation

According to the U.S Bureau of Labor Statistics, there were 10.6 million job openings on the last business day of November with only 6.3 million Americans being unemployed. If you do the math, it’s not looking good for business owners.

Some could argue that business owners could simply pay their employees more to retain employees in this tidal wave of resignations. Others may argue that they need to offer employees flexible work hours, more vacation time or the ability to work from home. These are valid points and can certainly make for a worthy debate. But I challenge you to dig deeper as an owner and ask yourself is this what employees really want? Is this what’s keeping the working-class up at night?

I don’t believe you’ll find any of the answers listed above.

According to a study done by the American Psychology Association, those with a household income of less than $50,000 report that money is a significant source of stress, while 59% of those making above $50,000 say the same. From that statistic alone, one may be able to conclude that Americans need help, but where do they get it?

In a recent survey conducted by Fisher Investments, 77% of respondents prefer to work for an employer that offers 401(k) plans over one that doesn’t. In a working paper released by the Rand Corp., researchers found that 73.7% of employees will consult with an advisor about their personal finances if one is made available to them. These statistics prove that employees want help, but they don’t have the confidence nor the time to seek it out on their own. This outcry could be the golden staff used to empower employers looking to hire and retain the best talent in the market. The 401(k) solution

In today’s competitive business environment, it’s rare to find a company with more than 10 employees not offering some sort of retirement benefit. Does it help set you apart from competitors by offering a match? According to data sources such as the U.S. Bureau of Labor Statistics and Fidelity, for the past decade, the national average 401(k) match has fluctuated between 3% and close to 5%. With that being said employers seem to think that offering a basic retirement benefit is going to give them the edge needed to attract and retain top talent and this is simply not the case.

How do employers set themselves apart?

In my opinion, just like in many business models in the modern economy, service is king. Employers will need to get serious and creative when it comes to choosing the right education program to offer to their employees. The financial wellness that your employees are craving isn’t an overworked human resources employee enrolling participants into a cookie cutter, overpriced, underperforming target date fund. Or an advisory firm introducing your employees to their third new “advisor” in the last 12 months who simply introduces themselves via email, ask employees if they have any questions, and they don’t see them again for six more months.

How about the 1-800 line that employees are referred to? Not sure about you but to me 30-minute wait times just to talk to a stranger about my finances doesn’t sound ideal. What a way to gain an employee’s trust and show them how much you value their hard work.

Just as any person who seeks out financial advice individually, employees deserve an advisor who is going to take the time build a genuine relationship and really get to know the participant, who is going to build out a wholistic financial plan catered towards their individual needs and desires. They need a friendly

AUSTIN HARLEY face who they know, like and trust to help them make the kind of decisions that are going to affect them and their loved ones for the rest of their life. The truth

A small business’s ability to grow is almost entirely dependent upon its ability to hire and retain key employees. As Richard Branson, CEO and founder of the Virgin Group, said, “Clients do not come first. Employees come first. If you take care of your employees, they will take care of the clients.”

Before you begin to offer your employee’s a host of things you’re not sure they care about, read between the lines and give them something you know they want. Give them the ability to go to sleep at night knowing they have an employer willing to expend the time and resources to offer them financial security, the benefit of a lifetime.

Austin Harley is managing director at Roadstead Capital Partners LLC in Charleston.

We want to hear from you

Write: Andy Owens, Executive Editor Charleston Regional Business Journal 1802 Dayton Street, Suite 101 North Charleston, SC 29405 Email: aowens@scbiznews.com