Small businesses are feeling the squeeze. Big corporations have deeper pockets, flashier benefits, and endless resources to attract top talent. But here’s the truth: competing isn’t about money – it’s about strategy.
In a recent LinkedIn Live, Cory Raggi and Greg Cullen broke down the biggest mistakes small businesses make when it comes to hiring and retention—and the strategies that actually work.
- Know Your Challenges—Because No Two Businesses Are the Same
The first step in solving the talent crisis? Recognizing that your business has unique hiring challenges. Industry, location, company size, and workforce demographics all play a role.
“If you don’t understand your specific challenges, you’ll waste time and money on the wrong solutions,” Cory said. Small businesses often have advantages—like agility, culture, and personal leadership involvement—but they need to leverage them in the right way.
Rather than copying what larger companies do, focus on what makes your business stand out and build your hiring and retention strategy around that.
- Work with Partners Who Put Your Business First
Small business owners wear a lot of hats, but benefits and HR strategy shouldn’t be a DIY project. The right advisors can help you navigate complex benefits options—but only if they’re truly looking out for your best interests.
One example? Child Health Plus, a program that provides affordable healthcare for employees’ families. “Most brokers won’t even mention it because there’s nothing in it for them,” Greg explained. But when small businesses work with partners who prioritize their needs over sales quotas, they find cost-effective solutions they didn’t even know existed.
- Develop Your People—Or Someone Else Will
Hiring is hard, but retention is even harder—especially when employees don’t see a future at your company.
“People don’t just leave for a bigger paycheck,” Cory said. “They leave when they don’t see growth.”
Small businesses may not always have clear-cut promotion tracks, but that doesn’t mean they can’t develop employees. Stretch assignments, mentorship, and cross-training can help employees gain new skills and feel more invested in the business. The more they grow, the more likely they are to stay.
- Offer Competitive Benefits—Without Overspending
A strong benefits package doesn’t have to break the bank. Small businesses don’t need to match Fortune 500 perks—they just need to be strategic.
Greg emphasized that many business owners assume high-quality benefits are out of reach, but there are affordable ways to structure benefits that employees actually value. From flexible health plans to employer-matched contributions, small businesses can design packages that keep them competitive without draining their budget.
- Make Sure Employees Actually Use Their Benefits
Even the best benefits package is useless if employees don’t understand it. Too often, businesses spend money on great plans but fail to educate employees on how to maximize them.
“Benefits are like gadgets—most people only know how to use a few features,” Greg explained. If employees don’t understand how their health plan, HSA, or retirement options work, they won’t see the full value of what you offer.
Cory added, “Helping employees make smarter benefits decisions is like giving them a raise—without increasing payroll.” A simple seminar or one-on-one guidance can go a long way in making employees feel supported and financially secure.
Small Businesses Can Win—If They Play Smart
The talent crisis isn’t going away, but small businesses don’t have to lose. With the right approach—focusing on their strengths, working with the right partners, investing in people, structuring affordable benefits, and educating employees—they can attract and retain top talent without trying to outspend the competition.
“The businesses getting this right aren’t just hiring better,” Cory said. “They’re creating workplaces where people actually want to stay.”
Want to learn more? Watch the full LinkedIn Live replay here: https://www.linkedin.com/events/thetalentcrisis-howsmallbusines7303517424807469056/theater/