It's often said that your employees are your greatest assets, and for most businesses, this is very true. Attracting and retaining the right talent to your team has always been an important part of business ownership — but this is true now more than ever before, as the workforce has evolved.

Since the pandemic, recruiting and retaining staff has become more challenging for business owners due to a number of factors, including low unemployment rates and labour shortages across the country. The unemployment rate recently hit 5.5% — down from 6.5% in early 2022, according to Statistics Canada. Meanwhile, approximately 843,000 jobs remain vacant in 2023.

This is problematic for small business owners, since retaining talented employees is crucial to success. But the sharpest business owners know how to retain their best employees and hire outstanding new ones.

Here are some tips on how you can manage to keep the best around long-term.

Foster a positive work culture

To attract and retain great talent, employers need to develop a supportive and positive work culture. But achieving it isn't enough — it must be maintained. The ideal scenario is for your workplace to remain a place where existing employees want to stay, and new candidates want to apply. That means regularly acknowledging and appreciating employee contributions and giving them the freedom to do their work without being micromanaged.

After all, in a strong corporate culture, employees feel valued. They maintain control over their jobs and avoid feelings of powerlessness. Put another way — employees aren't treated like machines.

Two-way communication between management and employees is key to increasing worker engagement. This way, employees don't feel their ideas go unheard. This is important if you want to avoid the dreaded "us vs. them" culture at your place of business.

Not only can the right culture improve employee satisfaction, but it can also boost performance. Collaboration among workers at all levels often yields exceptional work — and that means a better bottom line. Good business tools with up-to-date financial information, including payroll, can help you track these profit metrics.

Use efficient payroll systems to administer competitive pay

Culture alone won't keep employees on staff. Competitive retirement and health care benefits are essential, along with the right salary. This is particularly true in 2023, when inflation is leading workers to seek out higher salaries.

It's also important for savvy owners to help employees bump up their retirement savings. According to the 2022 Canadian Employer Pension Survey, one in six (17%) employers reported they'd introduced retirement savings plans or made existing ones better.

Changes to existing programs and introductions of new ones can be seamlessly administered through tools like QuickBooks Online Payroll.

Appreciate your workers

To retain employees, effective owners must show how much they appreciate their employees — and not just in words. Cash rewards can really help. Give workers bonuses for an outstanding performance, or consider sharing the profits of the company with your employees.

Bonuses can be easily distributed through an electronic payroll system, with income tax and other administrative tasks handled seamlessly.

Keep track of payroll costs on a daily basis

Payroll tools like QuickBooks Online Payroll can give you a quick and detailed look at your company's finances. This information can help you get a handle on tax-deductible expenses so you can avoid unnecessary taxes. Up-to-date financial data will help you understand the resources you have available to help attract and retain outstanding talent.

Streamline your business's payroll deductions and remittance process using quality cloud-based tools, such as QuickBooks Online Payroll.