Attracting employees to a one-person firm

As a one-person shop looking to hire a part-time employee to help with administrative tasks (ex. basically everything non-technical), I am wondering what would motivate someone to want to work for a small one-person shop as opposed to a more established, bigger firm with potentially greater opportunities for advancement, benefits, etc.

While a small shop may offer more learning opportunities and the ability to perform multiple functions which may lead to a greater degree of variability of work, I see the upsides and downsides (whether perceived or otherwise) as follows:

Upsides

1. Generally less "red tape" and bureaucracy to deal with;
2. Potentially more opportunities to learn;
3. May be less formal and provide a more "laid-back" work environment.


Downsides

1. A one-man shop may be seen as less stable than a bigger business and may be "gone tomorrow";
2. There are likely to be fewer benefits offered;
3. Fewer opportunities to socialize with co-workers and work with like-minded individuals;
4. Fewer opportunities for advancement.

Accordingly, I am stuck trying to figure out how to attract good talent. One way to do so would be increased compensation, but that would mean that a smaller business is paying its employees more than a bigger business, which doesn't seem to be the case anywhere. So, the question is: how does a one-person firm compete with larger firms to attract good employees for administrative positions?

I am a one man shop and had to hire part time help this past tax season. I had the head of the accounting department email the job listing to all of the senior accounting students as I was looking to hire someone for cheap rather than somebody with experience. I learned this was probably not the best way to go but it worked out reasonably well.

Based on the feedback I received from the employee, the main perks were pretty much exactly what you listed as the three upsides. I think another good selling point is it's the perfect place to learn how to run your own one man tax and accouting shop. More and more people are hearing about the benefits of running a business vs being an employee and learning first hand from somebody who has a one man shop is a decent starting point.

As you said, it's definitely tough to match the salary, benefits, and opportunities for advancement that a bigger firm can offer. Thus, making it more difficult to attract long-term loyalty.

Some people like the small firm concept because it makes them feel more important. They don't have to put up with pettiness from nasty coworkers. Maybe you should target those returning to the workforce, ie, SAHP or recent retiree.

Alex, finding good part-time help is a challenge especially in small towns where I operate but you may have better luck in a very large metropolitan city.

I have figured out over the years that a person who may want to work in a very small office with practically no health or retirement benefits is either a very young person just starting out to gain experience or a middle aged or older person that just needs some extra money and benefits is not an issue.

So I have typically hired high school seniors or college students. I actually work around their school schedule and they like that because they may be doing filing work at 7pm. on weekends etc. Also I get to teach them the way I want the job done and they generally don't bring bad habits with them. During busy tax season when I need phone coverage during business hours I hire a retired lady down the street.

Also be prepared to replace them when they quit because they got a better offer, so have a pipeline of candidates.

Now the employment situation for hiring is bleak for Employers right now, hopefully it will get better by next tax season.

Flexible hours, if you can offer that, is also a perk.

What sjrcpa said! When I was with a larger firm, we had several part time people. These were usually the moms that had kids in school. They are available during school hours, but needed to be home by the time school let out or the bus dropped off the kids. Of course, they needed to be off during any school breaks or when a child was home sick, but that was never a problem.

Mistakes I've made and learned the hard way about (and now have fixed) when hiring part-time admin:

1) Don't promise them the moon in their career growth with you or make any forward looking statements to them.

2) Train them a lot (non-stop coaching) and be very patient, but in general, if it's not coaching, don't talk to them too much. Keep the relationship somewhat distant under they have been with you for a couple of years and their true nature has been revealed.

Excellent points. They are your employees and not buddies. Also we all have a tendency to paint a rosy picture of career growth etc. Well I am not a career coach and I am hiring a part-time person to do certain "chores" not train them to be an accountant. I will teach them what I need them to do to get the tasks done and I stop there.

These are all helpful responses -- thank you all for your insights!

Years ago, I had a really good run hiring and training finance majors out of school. They were good people that couldn't find a job...you know because of the finance major.