Essential Hiring Strategies for Small Businesses and Career Centers

Small businesses are the backbone of the American economy. They are often the primary job creators in many regions. According to the U.S. Small Business Administration (SBA), there are nearly 38 million small businesses in the U.S., which make up over 99% of all American companies. These businesses employ around 60 million people, accounting for nearly 46% of the U.S. workforce (SBA, 2024). Despite their prevalence, small businesses frequently struggle with effective recruiting strategies. Many lack sufficient resources to hire effectively, which makes it difficult to compete with larger, established brands.

The Role of Career Centers in Talent Recruitment

Career centers can be invaluable resources for small businesses. They are particularly beneficial when seeking out young talent and professionals early in their careers. These centers provide direct access to emerging professionals, which can help small businesses grow and succeed. Importantly, career centers are not limited to entry-level positions; they can also connect businesses with skilled professionals across various experience levels.

Identifying common challenges small businesses face in hiring is the first step toward improvement. These challenges range from limited financial resources to a lack of HR expertise. Many small businesses struggle just to compete with larger companies for talent.

Common Hiring Challenges for Small Businesses

Limited Financial Resources and Staff Capacity

Many small businesses operate with tight budgets and staff. This limitation can hinder their ability to hire effectively. Cutting corners in the hiring process to save costs can lead to poor hires and increased liability. It’s a difficult situation: they might be stuck, feeling they need to hire more people to save time and money, but they can't afford to do so.

A practical strategy is to start small. Small businesses can engage in short-term opportunities like class projects with local colleges, temporary hires through workforce programs, or externships with high schools and technical schools. For example, a company might offer a 75-hour summer micro-internship to a community college student, giving them real-world experience while the business gains new support.

Some companies resort to unpaid internships due to financial constraints. However, career centers often recommend paid opportunities. Be cautious—some centers may restrict access to job boards or career fairs if you choose unpaid internships. It's crucial to comply with U.S. Department of Labor guidelines for unpaid roles to avoid breaching labor laws.

Exploring Funding Options

Funding options like wage subsidies can ease financial burdens. Programs managed by workforce development boards, like the Federal Work-Study (FWS), can subsidize wages for students employed part-time. Despite its potential, navigating these funding opportunities can be time-consuming and yield limited results. Consequently, offering at least minimum wage might be a more effective way to attract quality talent.

Tips:

• Investing time and resources in the hiring process is critical for positive outcomes.
• Start with small-scale opportunities such as internships or class projects.
• Research wage subsidy programs available through workforce development boards.
• Ensure any unpaid internships comply with Department of Labor regulations.
• Offering at least minimum wage can help attract a stronger applicant pool.
  
  

Managing HR, Recruiting, and Payroll

Small businesses just starting to hire or those that are scaling up face a significant challenge in compliance with various HR regulations. With resource constraints, it can be overwhelming to keep up with recruiting best practices and payroll management.

Outsourcing HR functions may be a solution worth considering. By partnering with third-party services or staffing firms, businesses can save time and focus on core operations. These firms can manage everything from recruitment to administrative tasks, helping to relieve some of the pressures associated with hiring. Many staffing firms operate on a success-based fee structure, which can also keep costs manageable.

For those businesses that wish to maintain hands-on control over their hiring process, working with career centers becomes a viable alternative. Engaging in employer orientations can provide helpful insights and connections. During these consultations, businesses can ask questions about how career centers can promote open roles and generate leads.

Key Questions to Ask Career Centers

• How can you assist with promoting my job openings?
• What services do you offer that generate candidate interest?
• Are there any fees involved?
• How can I boost application traffic to my roles?
• Do you have specialized services for small businesses?
  
  

When exploring options, prioritize centers that demonstrate measured success in job placements. If a center doesn’t track employment outcomes, it may not align with your hiring needs.

Tips:

• Outsourcing HR functions can streamline the hiring process.
• Partnering with another small business can share the costs associated with recruitment.
• Attend career center orientations or schedule consultations to find ways they can aid your hiring process.
• Focus on centers that measure success through job placements.
  
  

Competing with Larger Employers

Competing for talent against larger brands can be a daunting task. Small businesses often experience low application rates or candidates opting for more established companies.

Strategies for Competing Effectively

• Utilize free job boards to extend your reach without incurring high costs.
• Attend career fairs, especially if you are hiring multiple candidates, to boost brand visibility.
• Ask about tabling opportunities in high-traffic areas to promote available positions.
• Connect with student organizations and professors if recruiting from educational institutions.
• Take advantage of career center promotions, such as newsletters or social media ads, to reach a larger audience.
• Develop an internship or apprenticeship program to create a reliable talent pipeline.
• Implement an ambassador program where students can represent your company on campus, spreading the word about job opportunities.
• Offer flexible work options to attract more applicants, such as hybrid or remote roles.
  
  

Closing Thoughts

Career centers can significantly assist small businesses with hiring, whether for entry-level roles or more experienced positions. It's beneficial for businesses to explore various career centers to find the best fit for their needs.

Building lasting relationships with these centers is crucial for maximizing their resources. Taking the time to connect—perhaps over coffee or lunch—can enhance these partnerships. By investing in these relationships, small businesses can better attract top talent and build dedicated teams that grow alongside them.

About the Author

Daniel Newell brings over 25 years of expertise in employment, workforce, and economic development. He currently serves as the Executive Director of Career Vogue, a consulting firm specializing in career center strategy and Employer Relations; the Executive Director of Career Services at San Diego State University; and the President & CEO of A+ | American Association for Employer Relations +.

Mr. Newell has secured millions of dollars in funding through diverse channels and earned recognition from the California State Senate for his significant regional impact. He was named to Silicon Valley’s Top 40 Under 40 list by the Silicon Valley Business Journal, standing out as the only honoree representing higher education and career services among the region’s most influential business leaders. His thought leadership has also been featured by Forbes, Entrepreneur, USA Today, FOX News, and numerous other media outlets.

References

• SBA Report on Small Businesses
• U.S. Department of Labor Internship Guidelines
  
  

If you are looking to boost your hiring strategy, consider exploring the resources offered through career centers. They can be effective partners in connecting businesses with the right talent.