Recruiting and Retention Issues with Small and Large Companies

By Megan Martin

High-level accounting and finance professionals often have a strong preference when it comes to signing on with a large or a small company--each type has its plusses and minuses for prospective employees.

Because of the different cultures of these companies, each deals with its own set of recruitment and retention issues. Larger companies have the benefit of having more name visibility in the marketplace, as well as funding to attract and keep top talent, but small companies can often offer a more relaxed work environment and more flexibility. Of course, there are exceptions to every rule: Some small companies are just as competitive with salaries and benefits, and just as profit-driven. And, some larger companies offer flexibility.

“Recruiting and retention is really about making sure the chemistry is right between your organization and the candidate. Whether the candidate understands the culture, and whether they can adapt and flourish there,” says Peggy DeMuse, Managing Director of SALO Project.

Here are some of the biggest recruitment and retention challenges faced by large and small companies alike, as well as some suggestions for how to work around them.

Small Companies

Candidates sometimes subscribe to the belief that smaller companies are less stable than large corporations: “Small companies don't have as much exposure in the marketplace. They don't get the spotlight and market intelligence, so you have to really work to provide more education about who you are,” says Julie Tanaka of SALO Project.

Upward Mobility

Sometimes recruits assume they will have few opportunities for growth at a small company. To reassure top candidates, it's important to stress how much employees can learn.

“Small companies offer more flexibility and less need to ‘go by the book.' This means more of a person's talents can be used. Not only do employees get more experience, but they tend to be happier in positions where their abilities are used more effectively,” says Richard B. Wright in his Chief Executive article “The Advantages of Being Small and Private.”

By wearing many hats, employees can learn a wide range of skills, get a better view of the company as a whole, feel like a powerful part of the organization, and grow as the company grows.

Let recruits know they will have opportunities to take initiative and be a part of the decision-making process. If they can see that the company is growing, it will be clear to them that they can grow with it.

Large Companies

Candidates may fear they will be nothing more than a number in a profit-driven world.

To alleviate this concern, make candidates feel at home from the very beginning of the hiring process. There are many ways to let candidates know that they will be part of a team rather than isolated in a cubicle: “Personality plays a significant role,” says Warren Lochner of SALO Project. “Does the candidate get a sense that their managers will be approachable? Do they believe this company will care about them?”

Show candidates what you have done to take employees' personal needs into account—does your company offer scheduling flexibility? Do you encourage employee outings so members of the organization can get to know one another? What is your performance evaluation system like? Emphasize the ways in which your company works to make people feel at home.

Red Tape

“Some bigger companies have so many processes in place they can't get top talent hired quickly. People, especially ‘A' Players, are looking at multiple positions, and large companies sometimes lose top talent because the process takes too long,” says DeMuse.

The most important piece of the recruitment process is to have a consistent plan in place. “Have a set plan you go through, a core group of questions you ask to compare candidates. Bring structure to it,” says Lochner.

While it's important to take enough time to make the right hiring decision, it's also important that you make it quickly enough that you don't lose top talent. Do whatever you can to speed up the process while making the right decision.

Retention Issues: Small and Large

Retention issues for small and large companies are surprisingly similar: “I always look at retention as: Does the employee feel valued? Are they challenged in their role? Are there opportunities to progress? Are they fairly compensated? If they are not finding all of these in their current role, they may look elsewhere, especially if they're missing more than one,” says DeMuse. “All types and sizes of companies struggle with these issues.”

Value

“Be creative and have a variety of programs that support your employees as people,” advises Tanaka. “People want to be happy in their jobs and have the opportunity for social activities, to be mentored, or to mentor others.”

Lochner agrees: “There are lots of things you can do to make people feel valued, from positive feedback to listening to employees' concerns to accommodating their desires for a flexible schedule.”

On a more practical level, DeMuse recommends ongoing career growth/performance discussions, as well as job satisfaction discussions on a regular basis. At large companies, employers may have yearly reviews, but employees may get lost in the shuffle on a daily basis. At smaller companies, while employees may get project-to-project feedback, a formal performance review system may not be in place.

Challenge

At large companies, employees are often confined to a very specific role, whereas small companies need more generalists, with flexible capabilities and the ability to juggle many different tasks. In either case, employees need to feel challenged in their roles.

For a small company, this may mean reassigning lower-level tasks in exchange for a higher-level project that will allow employees to concentrate and build knowledge in a specific area of interest. And, sending an employee to a conference or career development seminar can give an added boost.

Progress

An employee's sense of progress is often highly dependent on communication from managers. If you're aware of what an employee's future holds at your company but they aren't, it can create serious problems.

“All companies need to think about succession planning, and the next opportunity for each employee. If you're not thinking about it, they are,” says Tanaka. “You need to show employees there is a visible career path for their future.”

While large and small companies struggle with recruiting and retention issues, the bottom line is that they have to understand candidates' and employees' needs, and be willing to show they see potential in their employees and can help develop them long-term.

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