Hiring in Today’s Market: Small Businesses Should Compete Smarter, Not Louder

By: Jeff Heybruck

Hiring right now feels a bit like entering a bidding war with companies twice your size and ten times your perks budget. Everyone wants flexibility, purpose and five weeks of PTO and holidays—starting Monday.

The labor market remains tight, and candidates (especially the best ones) know they have options. They’re not just evaluating salary—they’re looking at total compensation, lifestyle, growth and impact. That’s not guesswork—it’s backed by hard data from LinkedIn and PwC.

So how do small businesses compete?

As Fractional CFOs, we help owners balance people strategy with financial reality. Here’s how smart businesses can attract great talent without compromising.

1. Yes, You’re Competing—So Know Your Position

You don’t need to match Google’s benefits or Salesforce’s signing bonus. But you do need to offer a fair, market-aligned package. That means competitive pay, some level of flexibility, and a real shot at work-life balance. These are no longer differentiators—they’re baseline expectations.

What gives you an edge is everything else: direct impact, faster growth, no corporate red tape. That’s your value proposition—and it’s worth something to the right candidate. But you must hit the financial fundamentals first, or you’ll struggle to even get in the conversation.

2. Flexibility Is Expected — But You Can Still Set The Terms

Remote work and flexible schedules are table stakes now. But for small businesses, flexibility has a real operational and financial cost—especially when teams are lean. That’s where strategic policy—and smart cash flow planning—come into play.

Don’t lead with “we’re remote-friendly.” Lead with clear expectations and earned trust. Flexibility works best when it’s rooted in accountability. But accountability without flexibility? That’s control. Your culture needs to balance this and a strong financial framework allows you to support both.

3. You Won’t Out-Perk the Fortune 500—So Don’t Try

Trying to match enterprise-level perks is a losing battle, especially for companies without an HR department or a seven-figure payroll. But what large companies can’t offer is real ownership and visible contribution.

70% of workers want their work to be fulfilling according to a 2024 PwC report. That’s where your culture—and your business model—should shine. Small teams. Direct access to decision-makers. Fast feedback loops. Real accountability. These aren’t just talking points—they’re retention drivers. And it’s where small businesses can.

4. Manage Your Expectations but Take Onboarding Seriously

Here’s a hard truth we’re seeing more and more: some hires are accepting offers—and leaving within days or weeks. No obvious red flags. Just a sudden “this isn’t for me.” It’s frustrating, and it’s real.

Recent data shows that up to 20% of new hires leave within their first 45 days. While some of this can be chalked up to a market where candidates feel empowered to pivot fast, data shows that number can be lowered with better onboarding.

Almost 7 in 10 employees are likely to stay 3 or more years after a positive onboarding experience. And businesses with a smooth onboarding process boost their employee retention rates by 52%. It also results in 18x more dedication and loyalty to an employer.

I guess you never get a second chance to make a first impression, especially when it comes to hiring in today’s job market.

You never get a second chance to make a first impression, especially when it comes to hiring in today’s job market.

5. Thoughtful Benefits Don’t Have to be Expensive

You don’t need a 47-bullet-point benefits list. You need a few things that actually matter, delivered with intention. Meaningful perks beat flashy ones. Here are a few that employees really value:

• Profit sharing or performance bonuses
• Summer hours or early Fridays
• Good PTO that’s encouraged… not rationed
• A culture of trust, not micromanagement
• Education stipends or skills training

Think of these benefits as strategic investments in talent retention—and they can be designed to fit your budget.

6. Purpose and Business Discipline Go Hand in Hand

Candidates want to know their work matters. That they’re contributing to something real—not just filling a role. Purpose isn’t fluff—it’s a lever for motivation, loyalty and productivity.

And here’s where it connects to finance: Employees who understand the impact of their work are more likely to think like owners. They spend more carefully, execute more thoughtfully and stick around longer. That kind of alignment is what we help business owners build—one hire at a time.

7. Leverage the Power of a Culture that Fosters Friendship

According to a 2023 Society for Human Resources Management (SHRM) survey, 76% of employees with close friends at work say they are far more likely to stay with the organization. That tracks—most of us spend more waking hours at work than anywhere else. Having friends around makes things more enjoyable, more supportive and less draining. And those friendships don’t always happen by chance. They’re more likely to form in workplaces that take culture fit seriously when hiring.

Think about giving existing employees the opportunity to interview candidates and make team hiring decisions—which can encourage this dynamic. Another is to create a shared break area with coffee and snacks where conversation can happen naturally. You may also consider short, occasional off-site team outings that aren’t awkwardly forced—think lunch at a local spot or even just leaving early on a Friday for coffee. The right people in the right environment tend to click—and when they do, they stick around.

Yes, you need to compete in this market. But don’t lose sight of your business model—or your margins—trying to keep up with companies playing a different game. Hire people who want to contribute. Offer them something real. Build a compensation strategy that reflects your culture, capacity and cash flow.

And just as importantly—manage your expectations. Today’s employees are looking for opportunity, not a forever home. Don’t think generous perks will translate into lifelong loyalty. Design roles and rewards that make sense for the value they bring—while they’re with you.

Want help building a financially sound hiring plan that supports growth? That’s exactly what a Fractional CFO does.