by Christopher Nicosia, CMCA, AMS, MM - Operations Manager
When we look at the business environment of the 21st century and assess our place within it, we notice a distinct delineation amongst all involved -- size. Whether it is market dynamics, economics or government doctrine, there is a clear and undeniable difference between the small business and everyone else. What defines "small business"? Easy - the magic number -- 50 employees.
The real grey area in this environment is not over 50 or under 50...that is clear. The grey area is under 50 employees but larger than sole proprietorship. When it comes to human resource management, health insurance, worker's compensation insurance, etc., the laws of the land dictate that if a company is over 50 employees, it is bound by all the federal and state laws and guidelines for medical benefits, employee rights, time off, leave, FMLA, discipline and the list goes on. However, when under 50 employees, nearly every federal and state law goes to the wayside in favor of employer-defined practices. Sure, there are still laws that prevent small businesses from employing a 12-year old that works 70 hours a week, however, the protections employees receive and employers must comply with are largely dismissed unless a company breaches the 50-employee mark. The question is - what about a company with 49 employees and a fairly public image, what tack does it take?
Some would argue that the 50 employee cut-off established by the federal government for most of its employment and health insurance regulations is a burden to companies that fall close to that size. The cost of providing ACA-compliant health insurance, FMLA, paid leave, military leave, maternity leave is high, especially when you must not only find a suitable replacement in order to continue operations but must also ensure the employee has a position to come back to at their same salary and benefits level. This becomes compounded for companies that fall just short of the threshold amount but are still public enough to feel the pressure of public opinion. How does a company that is not required to comply with the federal regulations but is close in size to a company that does compete to hire talented individuals? What can they offer that will attract talent away from the safety net of a 50+ company bound by federal employment regulations? In general, how does a small business compete in this 21st century business environment?
The answer lies in the foundation of small business success -- a family environment with mutual respect and intangible benefits. Most small businesses cannot beat out larger companies for benefits such as higher salary, paid time off, leave, daycare, vehicle lease programs, etc. However, small businesses can offer a family atmosphere, flexible benefits to meet the particular employee's needs, the feeling that the employee is not just a number, but a valued and integral part of the company. Additionally, experience is also a valuable negotiating tool. Small companies have opportunities to mentor, coach and groom new talent that some larger companies may not. Whether it is a structural issue, an industry-specific limitation or simply an expectation issue, larger companies may not be able to provide the one-on-one experience that a small company can. Small businesses have a "loyalty equals success" attitude. Loyalty, above all else, can be a deal breaker when trying to acquire talent.
While the 21st century business environment is one that comes laden with regulations and imbalance, it can present opportunities for success. It requires forward thinking, an understanding of limitations and an ability to leverage intangible benefits against flashy tangibles. Small businesses thrive in this environment...small and nimble can beat large and clumsy if the strategy is right.
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