Worrying about hiring and retaining good employees? The struggle is real. Survey after survey — including this recent one from EntreLeadership — find that most small business owners and managers are thinking the same thing. This report found:

• 11.3 million US small businesses are struggling to find qualified employees.
• Over half (55%) say retaining their existing staff has been a challenge.
• Nearly half (45%) say increasing wage levels has put a strain on their bottom line.
• One quarter of small businesses have had to shorten business hours due to staffing challenges (that’s 7.6 million businesses in the US).

Sound like a typical day at the office?

That’s why it’s critical to put solid tactics in place to retain your good people. It might sound backwards, but that’s the way to find and hire great folks, too. A solid retention strategy pays off in good longtime employees AND is a secret weapon in the hiring wars.

Here are some tactics for employee retention:

Start with a solid base salary

Skilled HVAC techs and plumbers want and deserve a fair wage. Offer the going rate, and if you can bump it up a bit, do so.

Consider adding performance bonuses — but do it right

Since you’ve started with a fair wage, you’re not sending the message that your people have to hustle to survive. But a bonus structure for above-and-beyond behaviors can be great for your business and incentivize your employees. Think about bonuses for:

• Positive customer reviews
• High efficiency (without sacrificing quality)
• Maintenance agreement or warranty sales
• Other upsells that make sense for your business and the customer

Why does this work to retain employees? They have something to shoot for, goals to reach, a bonus above and beyond the day-to-day.

The bonus doesn’t have to be cash

Yes, everyone likes cold, hard cash in their pocket. But, if your budget doesn’t stretch that far, you could get creative with bonuses. One of the most sought-after: Extra PTO. You could start everyone with your base-level PTO and let them earn more with standout work.

Benefits

Not every small business, especially very small shops, can afford to offer health insurance to their employees. In many states, employers with fewer than 50 employees are not required by law to offer it. However… health insurance is a big concern for everyone, including your employees and potential new hires. Here’s where a little creativity can go a long way.

In Goodin’s service area, employers can offer employees a Section 125 plan, also known as a Section 125 cafeteria plan. It allows employees to pay for certain benefits, like health insurance, with pre-tax dollars.

Build career paths

For plumbers, we’re talking about apprentice, journeyman and master plumber levels. For HVAC, it’s entry level, mid level, senior level and specialty certifications. Let people know there are rungs on the ladder to aspire to, reach, and get paid more for doing so.

Reward loyalty

Think about anniversary bonuses, extra PTO, even profit sharing if that’s appropriate. Celebrate milestones like five or 10 years on the job. The point is to reward people for staying.

Don’t miss the small stuff

Make an employee’s birthday a free PTO day and go one step further and offer a birthday gift card. Regularly buy lunch for your team, whether it’s just pizza delivery at the shop or a lunch out with everyone. A wedding, birth of a child, an illness or death in the family? Recognize it with a company gift. These small acts of recognition don’t cost much, but they really add to the positivity and culture of your business.

Bottom line, you don’t have to break your budget to make your employees feel valued, happy, and excited to grow their careers with you.