From a persistently strong labor market to the Silver Tsunami, countless factors are putting pressure on the job market. Finding quality hires is harder than ever, and keeping qualified talent in the building is proving a challenge even for the best brands in the most attractive industries.

HR teams and recruiters have the resources and long-term capabilities to face the ongoing challenges of recruitment and retention for the foreseeable future. In contrast, entrepreneurs tend to have fewer resources and smaller teams.

Nevertheless, there are ways all business leaders can improve talent acquisition and retention. Here are three tips to help leaders and their teams attract and retain the best talent in their industries.

1. Be Strategic About Compensation

If you set compensation for your employees purely based on basic market research, think again. Entrepreneurs must always operate in a “David vs Goliath” mindset. They must avoid situations of attrition or direct competition if they want to win out against larger enterprises in an area as mathematically driven as compensation.

Nerdwallet suggests starting with the big picture: “Before you go ahead and decide what to pay one employee, think about how much you want to spend on the salaries of all of your employees.”

Only then should you consider what you can pay each salaried employee. Go beyond using average pay figures. Make sure you define the job correctly and that you consider candidate pay expectations. Factor in a solid benefits package, too.

By approaching your compensation in a holistic, well-rounded, and informed manner, you maximize your chance of attracting the best talent. From the jump, you send the message that they are joining a brand that understands how to compensate its workers well.

Outsource What You Can’t Pay Well

Another advantage of starting with an overarching valuation of your personnel budget is that it can help you see who you can afford to hire. It gives you the opportunity to consider all of your workforce needs, what you should reasonably pay each worker, and if that fits within your budget.

If these don’t line up, it may be time to outsource some things. By putting in the research up-front, you can ensure that your in-house salaried employees are the individuals you absolutely want to have on your full-time staff.

From there, you can isolate smaller or more infrequent needs and pass them off to a third-party agency or contractor. The job site Field Engineer emphasizes the fact that freelancers and contractors inherently cost less. It adds that even when you pay them a higher hourly or per-project rate than a full-timer, “freelancers don’t require the expense or resources required for training or onboarding. They don’t need sick pay, holiday pay, medical, dental or other benefits.”

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