Ever wonder how your small business stacks up against the competition? Or how you could ever compete with the big dogs when it comes to pay? Turns out, you may be at a greater hiring advantage than you think.
In a recent analysis of Homebase hiring data, Homebase Head Economist Jason Greenberg found that businesses with just one to four employees are typically willing to pay target hourly wages up to 10% higher than those with 20 to 49 employees — and even those with up to 250. Which makes the smallest businesses worthy competitors in a tight labor market.
Source: Homebase hiring data (January 2021 – March 2022).
How can the smallest businesses afford a bigger paycheck?
It all comes down to an edge in productivity. Looking into sales data for a select sample of Homebase customers, Greenberg finds that businesses with one to four employees earn approximately $4,500 more per month per employee than businesses with 20 to 49 employees. So, on a size-adjusted basis, they’re earning enough revenue per employee to pay a higher wage.
What does this mean for small business owners?
If you’re looking to fill a role on a team of fewer than four employees, you may find that you’re in a good position to compete with larger companies in terms of pay.
And if you’re not? Not to worry. There’s still plenty you can do to set your small business apart with worthy candidates — especially in today’s evolving labor market.
In a recent survey of 2,000 hourly workers, Homebase found that good leadership is more important than good pay. And that’s not all candidates are looking for in a job.
In order of importance, these are the top 10 factors hourly employees consider in a job offer — proving that being a better boss often pays more than handing out a better paycheck, no matter the size of your business:
- Company leadership
- Pay
- Great co-workers
- Flexible work hours
- A predictable work schedule
- Company culture
- Learning and development opportunities
- Company commitment to sustainability and the environment
- A short commute
- Health insurance
Homebase can help
A little tech goes a long way when it comes to attracting — and retaining — hourly workers. And Homebase offers all the tools you need to do it all in one easy app.
Here are just a few of the ways Homebase helps you build, manage, and take care of your small business team:
Hiring and onboarding: Post jobs, track applicants, and onboard new employees with ease.
Scheduling: Give your team the predictability and flexibility they need with an automated process that allows them to easily submit availability and time off. All while making it easy for you to build the schedule — and make and share changes on the fly.
Time clocks: Make work easier for everyone. With the Homebase app, your team can clock in and out right from their phones (or just about any other device). It also tracks breaks and time off, making compliance and payroll prep a breeze.
In-app messaging: Keep your team informed and connected around everything from open shifts to company values and learning opportunities — with built-in messaging, reminders, and real-time alerts.
Employee happiness: Use the Homebase Shout Out feature to recognize your team’s contributions and build a culture of acknowledgment and appreciation. Plus, collect feedback to keep tabs on how your team is feeling after every shift.
Early access to wages: Help your employees get ahead and stay on top of their finances at no cost to you or your business. Homebase gives your employees early access to up to $300 of their wages with zero interest or fees.
Remember: This is not legal advice. If you have questions about your particular situation, please consult a lawyer, CPA, or other appropriate professional advisor or agency.
