As an owner of a second-generation small business tax and bookkeeping firm, I currently have five employees (myself included) who run the gamut of generations.

When I took over the firm in 2020 — good timing for Dad, bad timing for me — I inherited two full-time employees: one at the tail end of the Baby Boomer generation and one a Gen-Xer, and I am at the very beginning of the Millennial generation. Knowing we would need to replace my father, we began the search for a new employee.

The last time the firm hired, we spent so much time sifting through resumes (some partly fabricated). I didn’t want to waste valuable billing hours doing that again, so I turned to a hiring agency. This turned out to be well worth the money. They send me a few potential candidates, then I hire one of them each year for a temporary seasonal position. This gives me a lot of flexibility while I decide if the person is a good fit for the firm — in the second year we did end up finding someone who would be a good long-term fit. Next was the tough part: would she take the job permanently?

Employees today want a much different work environment than previous generations, and with the labor market in its current condition, workers have choices. What helped my newest staff member say “yes?”

Pay & Benefits

Millennials in particular want to be paid what they are worth, but they are willing to make tradeoffs. The highest pay doesn’t necessarily mean they will take the job (and stay). What is competitive though?

Again, the hiring agency helped me out with this. They have access to so much data. I was able to hire at a rate that was comfortable for both of us. And don’t forget about those benefits. There is no reason not to have a retirement plan. A SIMPLE IRA plan costs me nothing but the match. And really, what is a 3% match adding to the bottom line? It amounts to 1.5% of my total expenses. I spend that much on internet fees.

Sick time and vacation time are always valuable. We started offering unlimited sick time as long as it wasn’t abused. I have paid out less than four weeks of sick time this year (and three of those weeks were paid COVID weeks).

The biggest cost by far is health insurance, but when it comes to attracting new talent, you must have it. Group plans can be found at a reasonable cost. High-deductible HSA plans are fairly low-cost premiums. My employees set up HSAs where they want and get the tax write-off. I negotiate pay raises based on the health insurance increases. Every year my employees have taken a smaller pay raise so they don’t have to pay part of the premiums.

Note: Be prepared to offer higher pay if you don’t offer health insurance!

Flexibility

Working 9 to 5 is great, but some days that just isn’t going to work. Things happen. Who wants to take vacation time to go to the doctor?

Our office has had a long-standing policy of working hours when one can. We make sure our schedules reflect when we will be out of the office, but no one owes me an explanation of why they aren’t sitting at their desk during normal business hours.

As long as deadlines are met and the work meets my standards, I don’t care. Between kids and aging parents, this perk can come in handy and doesn’t cost the business a dime.

Remote Work

Our office allows remote days, though everyone still has to be in the office a few days during the week.

This has really increased our firm’s productivity, myself included. There are less interruptions than when I am at work, I return messages on my schedule, and people don’t pop into my office while I am in the middle of a complicated tax return.

It also allows employees to work from home when they are waiting for the repairman or feeling a little under the weather. How many times have you had someone come into the office who clearly has a cold and then gets everyone else sick? With remote work, those people can stay home and work until they are better (or work a half day) and not cost everyone additional sick/vacation time. The expense? A couple of monitors and a computer shell I was recycling out-of-service anyway.

Work-Life Balance

Time with family and friends, not wanting to take work home, and limiting working hours — these are all things that are highly valued.

As a tax CPA, I know I will be working heavily during February, March and April, so I don’t want to constantly be working more than 40-hour weeks the rest of the year. Even during tax season, my office averages 55 hours a week. More than that, and we all burn out. During the off season, there are few weeks we all work 40 hours. This lets my employees enjoy some extra time off (which they love) and means a little less out of my pocket each week when my cash flow is a little tighter.

Most people want a life outside of the office. Give it to them.

Work Environment

Your work environment is comprised of so many seemingly small features or gestures that add up to a bigger feeling that employees may love (or dislike). My new hire likes that we don’t have cubicles — she said it feels “homey and not like a jail.” My husband loves that his new job makes him feel appreciated — his boss brought him cupcakes and said, “Happy Birthday.”

The environment is what makes an employee stay or leave. Someone who enjoys working for you is less likely to leave the job for monetary reasons…unless you are really underpaying them.

When it comes down to it, attracting new employees is hard work. It requires flexibility and understanding. Remember, all generations shake up the labor market when they first enter — it would be silly to think the next generation won’t do the same.