Three Steps Winning the Talent War

2007 will be a year of competition to fill jobs, especially for employers of 500 or fewer people. The United States average jobless rate is 4.5 percent; 3.5 percent is typically considered full employment. Twenty-six states are now below the national average and the pinch is on.

Employers are having a tough time filling positions at all, so getting highly qualified help is a luxury. The competition is fierce for the best candidates. Companies need to be creative and aggressive to create positive conditions to attract the right people for their open positions.

1. Attracting the Right Employee

Small businesses must evaluate what job candidates are seeking in an employer. Drastic changes may need to be made to attract high-quality employees. Many of America's 5.7 million small employers will have to consider raising wages to better compete with larger employers with higher salaries. Hiring the wrong person and then having to find another person with a better fit is costly, reduces morale and causes disruption to the small workforce. Higher wages can actually be cheaper in the long run if you consider training costs, turnover expenses and poor quality.

Another way for the small business owner to attract the right talent from a slim employee talent pool is to offer better benefits such as flex time, home-based office hours, and work environment maximization.

2. Work Environment Maximization

The younger generation has a different approach to work and a different expectation of a work environment. Those employers willing to make work environment changes will attract better quality employees. Typically the workplace has been a cube farm with Internet restrictions, rules against personal music devices, and sterile break room facilities. A working computer, phone and a couple of stocked vending machines used to be enough. Not anymore.

A complete makeover is needed for the workforce of today and the future. Individuality, personal space, and flexibility are keys to attracting the right minds for the right jobs. Employers need to review their dress codes for their reasoning. Financial employees contacting customers directly must present a trust-inducing image, but an internal salesperson who rarely comes in contact with the client in person can have a different style of business attire.

The key is finding the work environment best suited to your employees, not your view of how things have always been and should be from now on. The new generation's perspective on a work environment has shifted dramatically, driven by technology's elimination of the need to work in an office in the same building as your boss. For many of us who have been working 25 years, working in a home environment is a luxury, for the newer workers it is now the standard whether the office is actually in the home or not.

3. Internal Branding

Many companies are well aware of the need for branding for customer recognition, loyalty and awareness, but few are working as diligently on their internal branding. The viral buzz that can spread on the Internet about a company through customers whether happy or disappointed can take on a life of its own. The same happens for company employees and the culture of your organization.

Internal branding is a unique way to create a brand within your current employees to attract the best talent everyone is trying to hire. Because future employees know it will be a favorable labor market for them, they can afford to be selective and their criteria will not only be based on money and benefits, but will include a more important barometer: Will I like working there?

Today over 75 percent of U.S. employees do not enjoy their job or like the company they work for. The new workforce is not going to accept that, and they know with more jobs than applicants, they won't have to.

Savvy companies will be working to create a brand identity of the best place to work. Product loyalty like iPod and Starbucks are well crafted branding identities for customers of this age group. These products are fresh, new and fit the needs of this market. Internal branding is the same thing, only directed inward.

Crafting your internal brand message will be just as crucial to your future success as your branding to your customers. Now is the time to attract the best talent before your competitors grab them, and create an internal brand that has tremendous draw, appeal and cachet. Smaller businesses can have a greater advantage over large organizations if they act swiftly and make the transition immediate.