Recently in August 2018, the Small Business Administration of the United States published some interesting Small Business statistics. It appears entrepreneurs are doing their best to produce new jobs.
The SBA defines a small business as those independent companies with few than 500 employees. Even though the SBA claims 80% of the 30.2M small businesses in the United States has no employees, the remaining 20% of small businesses with paid employees accounted for 66% of net new jobs.
It appears some of these small business owners are doing a great job of growing their businesses where they are able to provide jobs to people.
Being a small business owner myself, where I have hired hundreds of employees over the course of the life of my businesses, this is no easy task. Small business owners get creative on how to attract employees away from major large enterprise competitors offering tremendous benefits.
One of the techniques I used to attract and keep talented employees was by offering Performance Share Bonuses. Without my giving up ownership of my business, I was able to keep highly skilled employees by offering annual bonuses based on their individual contribution to the financial growth, profitability and success of the company.
Over the years this contributed to consistently doubling annual sales and maintaining a high level of camaraderie in the firm. The bonuses many of my employees earned paid well above my larger competitors and provided me with the increased profitability I strove for to raise the valuation of my firm.
If you are a small business owner with paid employees and you are struggling to attract and keep talented employees, consider offering a performance share program. Your attorney can assist in the creation of this program.