Growing from Within: How Developing Employees Strengthens Your Business

The labor market has eased a bit over the past few years; however, many small business owners still cite hiring and retaining qualified employees as a top concern. One effective way to address this challenge is to invest in developing your current team. When employees recognize that they have opportunities for growth and advancement, they’re much more likely to stay and build a long-term career with your company.

Why Develop Employees from Within?

When you help your employees grow and develop new skills, you reduce the risks associated with external hiring. These employees already understand your company’s culture, values, and expectations. You’re also familiar with their strengths and areas for improvement, making it easier to place them in roles where they can thrive.

Developing your team sends a strong message to your staff that you value them and are invested in their futures. Over time, this can lead to lower turnover rates, higher job satisfaction, and reduced HR costs. Plus, it ensures that valuable institutional knowledge stays within your organization.

How to Identify Employees with Growth Potential

A key part of employee development is identifying those who have both the desire and the potential to grow. Here are a few questions to help you spot employees who may be ready for advancement:

  • Does the employee take advantage of optional training opportunities?
  • Do they ask for feedback after completing assignments?
  • Are they willing to volunteer for projects that stretch their abilities?
  • Do they embrace challenges with a positive attitude?
  • Do they encourage and support their coworkers’ growth?

If the answer to most of these questions is yes, you may have a great candidate for further development.

Steps to Develop and Retain Quality Employees

Once you’ve identified potential leaders within your organization, consider the following steps to help them grow:

  1. Discuss Career Goals
    Have an honest conversation about their long-term goals and whether they see a future with your company.
  2. Outline Growth Paths
    Show them what different advancement paths might look like and what skills or assignments they’ll need to get there.
  3. Provide Learning Opportunities
    Offer on-the-job training, mentorship, classes, certifications, or cross-training in different departments.
  4. Set SMART Goals
    Help them create Specific, Measurable, Attainable, Relevant, and Time-bound goals that lead to expanded duties and promotions.
  5. Keep It Flexible
    Reassure employees that it’s okay to adjust their career path over time to better align with their skills and interests.
  6. Offer Consistent Feedback
    Regularly review their progress, offer constructive feedback, and ask how they feel about their growth and workload.

Final Thoughts

Retaining quality employees by providing opportunities for advancement is a win-win for both your team and your business. Employees feel valued, motivated, and loyal—and your business benefits from experienced, engaged staff.

Take a moment to reflect on your current employee development efforts and ask yourself, How can we improve our processes to better support and retain top talent?” Small, intentional steps now can lead to stronger, more capable teams in the future.

How to Retain Employees: Effective Strategies for Small Business Owners

Hiring employees is a significant investment for any small business. The hiring process can be time-consuming and costly, and often, the largest expense during onboarding is employee training. During this stage, business owners or supervisors spend a lot of time training new hires, which can initially feel like a drain on resources. But this is temporary.

In a short period, your new employee will become comfortable with their responsibilities and will start contributing to the growth of your business. However, the real challenge begins when an employee leaves shortly after being trained. That’s why employee retention should be a priority for your business.

Retaining employees not only saves you time and money, but it also helps to build a more experienced and cohesive team. In this post, we’ll explore several employee retention strategies that will help you create a workplace environment where employees feel valued and motivated to stay long-term.

1. Offer Competitive Compensation

It’s no secret that compensation plays a critical role in employee satisfaction. If your employees feel they are being fairly compensated for the work they do, they’re less likely to seek employment elsewhere. Research what constitutes a fair wage for the roles in your industry and location, and offer salaries that reflect this.

2. Create a Supportive Work Environment

Employees who feel respected and valued are more likely to stay with your company. A supportive work environment encourages open communication, respect, and collaboration. Allow your employees to make mistakes as they learn, actively listen to their feedback, and encourage them to take on new challenges. When your team feels supported, they’ll be more loyal and motivated to grow with your business.

3. Provide Adequate Training and Development

One of the most important factors in employee retention is ensuring that new hires are properly trained. A lack of training can lead to confusion, frustration, and burnout. By creating a clear training plan and offering ongoing learning opportunities, you’ll set your employees up for success. In addition, showing an interest in their professional development helps employees feel valued and invested in their roles.

4. Offer Flexible Work Arrangements

Flexibility can be a key factor in employee satisfaction and retention, especially for employees with changing family dynamics or personal commitments. Depending on your business structure, offering remote work options or flexible hours can make a big difference. By being adaptable to your employees’ needs, you can increase job satisfaction and keep talented workers on your team for longer.

5. Tailor Benefits to Your EmployeesNeeds

One-size-fits-all benefits packages often fall short of meeting employees’ expectations. Some employees may prioritize health insurance, while others might prefer additional paid time off. As a small business, you might not be able to offer every benefit under the sun, but you can still provide value in creative ways. For example, consider offering paid days off for special occasions like birthdays or holidays, perks like snacks or coffee, or discounts on your products or services.

6. Understand What Motivates Your Employees

To keep your team engaged and motivated, it’s crucial to understand what drives each individual. Some employees are motivated by financial rewards, while others appreciate recognition or opportunities for growth. Common employee incentives include:

  • Cash bonuses
  • Gift certificates for services like meals or massages
  • Extra paid time off
  • Recognition programs, such as Employee of the Month
  • Professional development opportunities, like attending conferences

By aligning your rewards with your employees’ preferences, you can increase motivation and employee retention.

Conclusion: The Key to Long-Term Success

Retaining employees is one of the most important aspects of building a strong, successful small business. By offering competitive compensation, creating a supportive environment, providing adequate training, offering flexible work options, and tailoring benefits to individual needs, you can create a workplace where employees feel valued and eager to stay for the long term.

Remember: Employee retention isn’t just about paying well—it’s about creating a positive workplace culture where employees feel respected, supported, and motivated to grow alongside your business.

Hiring Your First Employee

Many business owners start as solopreneurs. They establish their business entity and dive in, wearing multiple hats. Whether you’re a craftsman, accountant, artist, marketer, tech consultant, or attorney, the journey often begins alone. But as your business flourishes, you may find yourself overwhelmed with more work than you can handle. At this crossroads, you’ll need to decide whether to (1) turn away business, (2) outsource some tasks, or (3) hire your first employee.

Hiring your first employee can feel daunting. Finding the right person is just one challenge; ensuring you comply with legal requirements adds another layer of complexity. If you decide to take the leap, here are some essential guidelines to follow:

  1. Define the Tasks: Identify what tasks you’re willing to delegate. It can be tough to hand over responsibilities you’ve managed yourself, but trust is key. If you can’t trust someone to take on specific work, hiring might not be the best option.
  2. Create a Job Description: Detail the tasks the employee will be responsible for, and outline the necessary skills, experience, and training required. A clear job description will help attract the right candidates.
  3. Research Wages and Benefits: Look into typical wages for the role you’re hiring for, and consider what benefits you can realistically offer. While health insurance and retirement contributions are valuable, don’t forget that flexibility—like remote work options—can also be a strong draw for potential employees.
  4. Tap into Your Network: Let your professional circle know you’re hiring. A recommendation from someone you trust can ease the stress of your first hire and may even lead you to the perfect candidate without needing to advertise.
  5. Develop a Job Application: Ensure your application focuses on the necessary skills and adheres to employment regulations. Avoid questions about age; you can simply ask if candidates are over 18. If driving is part of the job, inquire about a valid driver’s license, but keep other unrelated questions out.
  6. Advertise the Position: Choose advertising platforms that will reach your target audience. Consider local newspapers, LinkedIn, and job portals like Indeed and Snagajob to maximize your visibility.
  7. Craft Interview Questions: Focus on skills relevant to the job. Standardize your questions for each interviewee but allow for follow-ups based on their responses to delve deeper.
  8. Evaluate Applications: Review applications carefully to find candidates that meet your criteria. If someone isn’t eligible, don’t waste time moving forward with their application.
  9. Schedule Interviews: Select candidates to interview. Remember, there’s no obligation to interview multiple people if a referral impresses you. Trust your instincts!
  10. Make Your Selection: After interviews, it’s time to choose. Depending on the position, you may need to extend a conditional offer and conduct a background check before finalizing your decision.
  11. Onboarding Essentials: On your new employee’s first day, they will need to complete a W-4 and I-9 Employee Verification form. Be sure they provide documentation confirming their legal eligibility to work in the U.S. You might also need a state tax withholding form depending on your location.
  12. Set Up Payroll: Implement a payroll process, which can be managed through online payroll features of your accounting software or by hiring an experienced bookkeeper or payroll service.

Hiring your first employee is a significant milestone. Initially, training may feel overwhelming, and it might seem like you have more work than before. However, remember that this phase is temporary. Soon enough, your new hire will begin to take on responsibilities independently, allowing you to focus on growing your business without bearing the entire workload alone. If you make a thoughtful hiring choice, you’ll find that this step can be a game-changer for your success.

As you embark on the journey of hiring your first employee, remember that every business is unique, and challenges can vary widely. If you find yourself pondering specific aspects of this process or if any questions arise along the way, there are plenty of resources available to help you navigate this important step. Engaging in discussions with others in the community can also provide valuable insights and experiences.

You’re not alone in this journey, and connecting with those who share similar experiences can lead to great ideas and solutions.

Resilience Despite Mistakes and Adversity

I have just finished chapter 5 of Jodi Detrick’s book The Jesus-Hearted Woman.  The chapter is titled ‘Resilience.’  In it Detrick discusses the need to continue fulfilling the tasks God has called us to even when (1) we make mistakes, (2) others hurt us, or (3) life throws curve balls our way.  Detrick refers to these events as My Bad, Their Bad and Too Bad.  Her discussion questions at the end of the chapter focused on Joseph and the resilience he needed in order to become the leader God desired him to be. Unfortunately, Joseph experienced a number of My Bad, Their Bad and Too Bad moments along the way.

As a young man, Joseph had a dream that his brothers bowed down to him.  Unfortunately, sharing the first dream was one of Joseph’s ‘My Bad’ moments.  His brothers already were angry with him because he brought a bad report about them to his father, and they were jealous that their father loved Joseph more than his other sons. This dream added fuel to the fire.  Genesis 37:8 tells us, “So they hated him even more for his dreams and for his words.”  If this wasn’t enough, Joseph had a second dream in which not only his brothers but also his parents bowed down to him.  And, of course, he shared this dream with his father and brothers–another ‘My Bad’ action. His brothers were angry and wanted revenge on Joseph.

Joseph experienced a ‘Their Bad’ moment when his brothers sold him as a slave to a company of Ishmaelites.  Joseph was bought by Potiphar, a captain of the guard in Pharaoh’s army.  God favored Joseph, and he rose to a position of prominence in Potiphar’s household. Apparently Joseph wasn’t yet ready for the leadership role God had in store for him, as he was falsely accused of inappropriate behavior toward his master’s wife and thrown in prison–another ‘Their Bad’ moment.

We don’t know how long Joseph was imprisoned, but we do know that thirteen years passed between the time his brothers sold him and when Pharaoh released him.  At least several of these years were spent in prison.  It must have been difficult for Joseph to sit in prison year and year waiting for God to deliver him.  I am sure that he recognized that he and his father bore some responsibility for his brothers’ hatred toward him, but he was completely innocent of the charges brought against him by Potiphar’s wife.  It would have been easy for Joseph to become bitter about the circumstances of his life.  He could have convinced himself that God was against him and that his life was over.  But Joseph didn’t get angry and he didn’t give up.  He persevered.  He was resilient despite all the adverse things that had happened to him.

Genesis 39: 21 – 22 tells us, “But the Lord was with Joseph and showed him mercy, and He gave him favor in the sight of the keeper of the prison.  And the keeper of the prison committed to Joseph’s hand all the prisoners who were in the prison; whatever they did there, it was his doing.”  Joseph’s rise in the prison to a position of leadership did not come overnight.  He had to prove to the keeper that he was reliable and responsible. As he did, his responsibilities increased until Joseph was running the prison.   After some time had passed, the king’s chief butler and chief baker were imprisoned.  Joseph interpreted dreams for each of them which came to pass just as he had foretold. Joseph had shared his plight with the butler and asked the butler to mention his situation to Pharaoh.  How he must have hoped that his release from prison would come soon.  Yet, we read in Genesis 41:1, that another two years passed before the chief butler remembered Joseph.  ‘Too Bad,’ but again Joseph was resilient and persevered.

Eventually, however, Pharaoh had a dream which his wise men could not interpret.  It was then that the butler remembered Joseph.  Joseph interpreted the dreams, being careful to give all the glory to God.  He shared with Pharaoh that God was giving him an opportunity to prepare Egypt for the coming famine.  Pharaoh appointed Joseph to a position of great power, second in command only to Pharaoh himself.  Joseph was used by God to save Egypt and Joseph’s own family from starvation.

We can only surmise as to why God delayed Joseph’s release from prison.  Certainly, in prison Joseph was developing the leadership skills he would need later as a leader over Egypt.  During those years, Joseph continued to serve the Lord and God’s favor was on him.  As the leader of Egypt, Joseph had grown and changed much from the arrogant teenager his brothers had sold into slavery.  When Joseph appeared before Pharaoh, he was humble and quick to give the glory to God.  God opened Pharaoh’s eyes to see that Joseph was the right person to lead Egypt through the coming famine.

Any one in leadership positions faces My Bad, Their Bad, and Too Bad situations on occasion.  The challenges Joseph faced prepared him for more leadership responsibilities. Like Joseph, we must be resilient and allow the adversities we face to help us develop as leaders.  As we do, we will be able to do more and accomplish more, until we complete the work God has called us to do.