4 Reasons Your Staff May Not Be Staying

Many small business owners find it both daunting and difficult trying to maintain good quality staff. Here are 4 common reasons small business owners have trouble retaining quality staff and how to remedy the situation if you find that this is the reason you are having HR difficulties.

  1. You Hired Family. Family is an easy, feel good source of help. When hiring family, these work/family ties often come into play when conflict arises. As a rule, try to avoid hiring family members when at all possible. But if it becomes necessary, the family member should go through the same hiring process as other staff, be fully qualified to do the job you are hiring them for and make sure to give clear expectations. 
  2. You're paying everyone 1099. A common tactic that small business owners use to avoid the hassle of payroll taxes is to keep staff on 1099 contract status. What most employers don't think about when they do this is that employees are still responsible for their taxes and have to pay at the end of the year. The QuickBooks payroll module makes doing W4 based payroll super easy and a subscription costs less than $400 per year.
  3. You're paying too little. When you are considering hiring new staff, one of the first things that a small business owner should research is the going rate of pay for your industry. If you offer a job that pays below the going rate, then you will get on of the two types of employees - those who are willing to work for less until something better comes along OR those who cannot maintain a job in the field at other, better paying companies. Bottom line, be prepared to invest in your employees.
  4. No benefits. This is an area that small business owners find scary due to lack of information on how to obtain benefits for employees and what rules to follow. Cost is another factor. Business owners should view offering benefits as part of a "total compensation package" or everything an employee gets for being an employee of the company. A good broker can help you select some basic plans that are affordable; and keep in mind that you can include yourself in any plan you buy for your employees.