Small companies often times do not have the resources to outbid bigger companies for talented employees.
However, they have many other advantages when dealing with retaining talent. Talented people need to be challenged to feel self worth. In large companies, that sort of impact is difficult to measure. There isn't a lot of satisfaction in being commoditized.
Workers need to see their impact put into use. This is where small businesses excel. In small businesses, workers can see their impact on everything from policy to the bottom line. Other things like culture and innovative perks give employees incentive to stay in a small tight knit company.
Small companies are usually more flat than large organizations. This is partially because there simply are not enough people to go vertical, but it is more than that. Small companies rely on employees for innovative ideas and suggestions on every level. In this way, the company culture can be more of a family or team oriented atmosphere.
Instead of a "work team" it actually can feel like a real team, where everyone wants to be there and works towards a common goal. This makes employees happy and feel like the company actually cares about them. This is a sharp contrast to a mostly cold, calculating corporate world.
There could be a series of five articles written solely on the different perks that a company could offer their employees. Some things I've already written about include gym memberships or in house work out rooms. This can help morale and the health of your workforce.
Also, some companies offer fully stocked kitchens so employees can have lunch at work. I know that one gathering area at a firm I worked for is a fully stocked drink station. Everything from teas and coffees to soda were stocked at this little bar in the middle of the atrium.
This provided a place for people to take a break, meet with friends and just relax in the middle of their work day. This also helps with the family atmosphere. Child care is sometimes a big concern for employees.
Having a good, reliable source of free child care can sometimes be important to employees. In addition, things like company outings, flex time and other amenities can add great value for an employee.
I already talked a little bit about this bullet in the first paragraph. I think this is probably the most important advantage that a small company has over a larger company. In a large corporation, people seldom feel as though their contribution is directly adding to the bottom line.
In a small company, however, that is very different. Employees can make suggestions and see their ideas go to work. Also, since there are fewer projects, employees can see the direct results of their initiatives. If one fails, it only motivates talented employees to make sure that their next one doesn't.
Employees are the greatest asset that any company has. This holds especially true for smaller companies. There are fewer assets, customers and brand recognition for start up firms. This further emphasizes the significance of good employees.