ST. LOUIS--(BUSINESS WIRE)--
Recruiting and retention are among the top challenges facing small and
mid-sized businesses according to a recent Enterprise Bank & Trust Think
Tank survey.Responding to an increasing need for companies to
gauge staffing recruitment and retention practices, Enterprise Bank
surveyed 110 of its corporate clients to learn of shared challenges and
opportunities. The survey results provide rationale for what’s happening
in today’s economy and offer solutions for achieving improved efficiency
and financial goals.
"The financial repercussions of inefficient staffing practices spread
beyond budget categories," saidJim Lally, President and CEO of Enterprise Financial Services Corp
(NASDAQ: EFSC). "Ultimately, they can cripple a company's overall
profitability."
Strong Economy Making Recruitment Tough
Recruiting and retention were among the top three business issues for 80
percent of the survey respondents.
Finding the right people is far more challenging than retaining them or
managing them, according to the survey. The most compelling statistic
impacting staffing is that unemployment has fallen below 4 percent for
the first time since 2000, according to the U.S. Department of Labor.
At Phoenix, Arizona-based SmartPractice, a family-owned health care
services company, VP of Human Resources Michelle Shaw says the company
maintains a top notch wellness program including onsite clinic, gym,
educational classes and counseling. "Our wellness benefits are a reason
people come to us, and a reason people stay. We work hard to be
innovative in retention so that joining SmartPractice is a career move,
not just the next job."
"Turnover is costly for many reasons, which is why we heavily focus on
developing and engaging our current staff. This benefits our bottom line
and supports the livelihood of our culture,” Shaw said.
For smaller companies with under $1 million in revenue, 83 percent
listed that finding the right people is the most challenging issue.
“Smaller companies wind up having to work harder to communicate why
candidates would want to work there,” said Larry Weinberg, president of
staffing firm, Accounting Career Consultants in St. Louis, Missouri.
Specific issues include the shift of employee expectations, especially
among the millennials and underqualified workers that require additional
training and skills development to meet job expectations.
Construction and distribution industries report the greatest challenges
finding qualified workers.
“We have ventured into a greener and less experienced market,” said
Mollee Wilkerson, human resources manager at Ernest-Spencer in Meriden,
Kansas. “That’s why we established the Ernest Spencer Welding School. We
have a welding expert on staff dedicated to working with entry-level
employees and developing them. Potential employees can apply with very
little experience and if they have good attitudes and life skills, they
can take advantage of this opportunity.”
Low employee engagement and morale was ranked in the top three
challenges by 45 percent of respondents. The healthcare industry
reported an increased challenge with low morale, with 67 percent.
Workplace Culture – Investing in the Emotional Needs of Staff Beyond
Salary
Companies often do a good job of addressing the rational needs of
employees. Salaries and bonuses were ranked as the most effective way to
address staffing issues among 53 percent of the respondents. What
companies often fall short on are the emotional components. This
involves thinking about a nurturing culture, which is subjective and
different by industry, but was mentioned frequently in the survey
feedback. While some aspects of culture are about attitude and approach
– being respectful, inclusive, communicative and trustworthy – other
opportunities can be simple and fun.
“This is where small and midsized companies can create a real advantage
– by being more nimble,” said Jeff Fromm, president at FutureCast in
Kansas City and co-author of three books on consumer trends and
millennials. “Things like leadership training, team-building activities,
flexible work schedules and even bring your dog to work day can create a
more desirable environment for some employees.”
In addition, training and coaching ranked at the top for companies in
both the $1-5 million and $5-50 million revenue ranges. Increased
manager coaching was reported as the top tactic for companies with more
than $100 million. While not ranking as high among small and mid-sized
businesses, coaching is one of the tools being used to address staffing
issues among all revenue brands.
Things to Consider: A Checklist
Based on the survey’s
results, Enterprise Bank & Trust derived an actionable checklist to
help companies increase overall efficiency and profitability.
Considerations include:
-
Audit internal process
-
Invest in training and coaching
-
Evaluate culture
-
Mentor both ways
Enterprise Bank & Trust has a complete survey report including a
detailed analysis available upon request.
About Enterprise Bank & Trust
Enterprise Financial Services Corp (NASDAQ: EFSC), with approximately $5
billion in assets, is a bank holding company headquartered in Clayton,
Mo.Enterprise Bank & Trust operates 28 branch offices in the St. Louis,
Kansas City and Phoenix metropolitan areas. Enterprise Bank & Trust
offers a range of business and personal banking services, and wealth
management services. Enterprise Trust, a division of Enterprise Bank &
Trust, provides financial planning, estate planning, investment
management, and trust services to businesses, individuals, institutions,
retirement plans and non-profit organizations. Additional information is
available at enterprisebank.com.
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Enterprise Financial Services Corp
Karen Loiterstein, 314-512-7141
kloiterstein@enterprisebank.com
Source: Enterprise Financial Services Corp