Skip to main content

Small businesses scramble to keep top staffers

By WTOP Staff

JOYCE M. ROSENBERG
AP Business Writer

NEW YORK (AP) — People are quitting their jobs at a faster clip and that’s pushing small business owners to work harder to hold onto top talent.

Dance studio owner Andrea Bisconti has experienced the challenge firsthand. When Kellie Love, an instructor there, said she was planning to leave to start a business of her own, Bisconti decided to act. Love inspires students to keep coming back for more lessons and brings in more than a quarter of the studio’s revenue, says Bisconti, owner of a Fred Astaire Dance Studio in Willoughby, Ohio.

“My most terrible fantasy was I would see students walk out the door in droves and I would be scrambling,” Bisconti says.

As the economy and job market improve, keeping the best employees is becoming vital for small businesses. Forty-three percent of owners are working to keep top staffers, according to a recent survey by Principal Financial Group. The reason: A growing number of employees are giving notice. The Labor Department reported more than 2.5 million people quit their jobs in July, up from 2.3 million a year earlier.

The trend is expected to continue. Thirty-eight percent of workers plan to change employers in the next five years, according to a 2014 survey by the management consultancy Hay Group. That’s up from 30 percent in 2010.

Bisconti figured out a way to keep Love. They are negotiating to make her a business partner. Other owners are using strategies such as communicating and coaching, creating a healthy environment and giving raises.

COMMUNICATE AND COACH

Jon Lal talks continually with the 25 employees of BeFrugal.com, walking around the office at the start and end of the day and chatting about work and staffers’ personal lives. He brings lunch in for everyone once a month.

The conversations give Lal a sense of whether staffers are satisfied or want to advance. He has kept one employee for eight years by giving her a series of new assignments to keep her motivated.

The approach is critical to retaining employees and avoiding unexpected resignations at the Boston-based company, which runs a website with coupons and cash-back deals, he says.

“If (a departure) comes as a surprise to you, very often it means you have not been in very close touch with what’s going on with that individual,” Lal says.

Communicating regularly with employees also gives owners a chance to provide feedback, something staffers want, says Michael Timmes, a consultant with HR provider Insperity, based in Houston. And it’s an opportunity to teach employees new skills.

“People want to be coached (and) want to be given guidance,” Timmes says.

A HEALTHY ATMOSPHERE

At FutureAdvisor, head of recruiting Chris Nicholson polled the investment advisory company’s 30 employees about why they stay. Most said it was the positive atmosphere created by the San Francisco-based company’s owners. They mentor staffers, set realistic goals and promote a healthy balance between work and their personal lives, Nicholson says.

“If the top management has their heads screwed on straight, the whole organization that grows out around them is going to be in a lot better shape,” Nicholson says.

Legacy Publishing trains its managers to speak to the company’s 95 staffers in a positive way, to give constructive criticism and to pay attention to workers’ quality of work life, says Rhonda Tracy, director of human resources for the Westbrook, Maine, company, which makes instructional software.

“We spent a portion of a meeting yesterday coming up with ways to make the employees’ days better,” Tracy says. One solution: Getting rid of some of the small, tedious tasks that can frustrate or bore them.

SHOW THEM THE MONEY

Owners and HR consultants say most people don’t leave a job solely because of pay unless another employer offers them so much money they can’t refuse. Job satisfaction is more important for many employees. But pay can be an issue at companies that slashed salaries during the recession, says David Lewis, president of OperationsInc, a human resources provider based in Norwalk, Connecticut. And workers at many of those businesses had to take on additional responsibilities as jobs were cut. They’re still carrying a heavy workload.

“At some point, it’s no longer sustainable to give people 2 or 3 percent increases on a base salary you’ve already reduced in some cases by 20 percent in 2009,” Lewis says.

____

Follow Joyce Rosenberg at www.twitter.com/JoyceMRosenberg

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
Read Next Story

Related News

Frustration grows in Venezuela as earthquake death toll reaches 1,430

Israel and Lebanon sign framework agreement with US in ‘first step’ toward peace, Rubio says

Trump-endorsed populist poised to become Colombia’s next president as rival challenges vote