On today's rundown: unemployment rates are at a record low, which means small businesses are finding it difficult to recruit and retain talent.
Welcome to the Small Business Run Down. Every day, we bring you stories and trends that impact small business owners and their workforce.
To start: the tight labor market and student loan assistance programs for employees, followed by the cooling small biz market. And for dessert: the Freakshake.
Tight labor market forces SMBs to attract and retain workers
The unemployment rate is at an almost-record breaking fifty-year low and small businesses are experiencing added pressure to both attract and retain workers. Although hiring among small businesses is slowing, wages remain high and SBOs are turning to fintech lenders as a means of expanding salaries and benefits packages.
The Number: 2X. The Department of Labor’s February Jobs Report indicated that nearly twice as many people quit their job in 2018 (40.1 million) than were fired or laid off (21.9 million).
The Quote: “It’s not difficult to see the connection between these statistics: SMBs are losing talent to larger companies, and salary is likely a key factor.”
Student loan assistance programs valuable tool for attracting talent
Looking for another way to attract new talent to your workforce? Consider creating a student loan assistance program for employees. A great way to attract Generation Z workers, these programs can help ease the debt burden through monthly payment or employee match programs.
The Number: 54%. A recent survey of 18-24 year olds found that 54% would rather have employers offer a student loan assistance program than a 401(k) match program.
The Quote: “Women and racial minorities are much more likely to carry student loan debt than white males, so this benefit alone could attract more diverse applicants.”
Thinking of selling your business? The boom market might be cooling…
Although sales remain strong overall, recent data indicates that the market for buying and selling small businesses appears to be cooling. A number of factors play into this slowdown, including a low unemployment rate–indicating job satisfaction–and high profits. Even though the Federal Reserve has no plans to raise interest rates again this year, the economic forecast may also be giving would-be buyers reason to pump the brakes on plans to acquire new companies.
The Number: 6.5% The number of small businesses sold in the first quarter 0f 2019 fell by 6.5% from the same time last year.
The Quote: “We are seeing signs that the market could become more challenging in the future with interest rates rising and financing becoming both more expensive and harder to acquire.”
“Freakshake” trend highlights power of social media marketing for SBOs
Restaurants around the globe are capitalizing on a super-sweet social media marketing trend: The Freakshake. Started in Australia in 2015, this viral marketing sensation demonstrates the power using social media and SEO strategies to attract customers for your business. Plus, it just looks really delicious, too.