The job market in 2025 continues to present unique obstacles for small business owners. While headlines highlight layoffs across major corporations, the reality for businesses with 10 to 50 employees tells a different story. According to recent findings from the National Federation of Independent Business (NFIB), small businesses are facing unprecedented challenges in finding and retaining quality talent. In a recent episode of the KeyHire Small Business Podcast, host and KeyHire Solutions founder Corey Harlock breaks down the latest NFIB data and reveals why traditional hiring approaches are no longer effective. For small business owners generating $5 to $25 million in revenue, understanding these market shifts isn't just helpful—it's essential for sustainable growth. The Current State of Talent Acquisition: What the Numbers Really Mean According to Harlock's analysis of the NFIB's latest findings, the data reveals some startling trends that every small business owner should understand. His breakdown of the report shows that 19% of business owners identified filling jobs as their most important problem. A striking 40% cited hiring challenges as their biggest concern, particularly in the manufacturing, transportation, and construction sectors. Additionally, 38% of owners reported rising compensation costs as a major business challenge. However, here's a crucial insight that many business owners overlook: despite widespread corporate layoffs, the unemployment rate remains at just 4.2%. This means the talent pool remains surprisingly shallow. "We need to change the way we think about this," explains Harlock. "I know a lot of people think, oh, they're laying off. There's going to be a lot of people out there. We can get some good people cheap. Please change that mindset. You're hiring a rental player." By "rental player," Harlock means employees who accept below-market offers out of temporary necessity but will leave as soon as better opportunities arise. As he explains it: "If someone's making $100,000 a year, and you are able to get them because they're unemployed for $90,000, that doesn't mean they're sticking with you. It means as soon as the economy gets better and their company calls them back and offers them $100,000, they're gone." The math is sobering but straightforward. In a strong economy, unemployment typically hovers around 3% to 3.5%. Once you factor in the unemployable population —those without relevant skills or experience —the pool of qualified candidates shrinks dramatically. This explains why businesses continue struggling with hiring despite economic uncertainty. Modern Workforce Realities: How Employee Expectations Changed the Game The Remote Work Revolution Continues The pandemic fundamentally altered worker expectations, and these changes have become permanent fixtures of the employment landscape. Today's job seekers frequently express preferences like: "Unless this job is 100% remote, I'm not interested." "I'm looking for a hybrid role where I can work 2-3 days at home." "Unless it pays really well, I won't consider an office position." The Trades Crisis Deepens Skilled trades face particularly critical shortages. Fire and life safety technicians, security specialists, and traditional trade workers are in extremely high demand. Even trade schools report lower enrollment than desired, creating a supply-demand imbalance that drives wages upward. This shortage creates a domino effect: as businesses compete for a limited talent pool, compensation packages naturally increase. It's not just about the base salary anymore—candidates evaluate total compensation packages, including benefits, flexibility, and growth opportunities. Business Growth Tips: Strategic Approaches to Competitive Hiring Understanding the Seven Candidate Drivers Successful hiring in 2025 requires a systematic approach to compensation negotiation. KeyHire Solutions has developed a framework called the "Seven Candidate Driver Comparison" that evaluates every negotiable element: Title and Career Progression - Candidates want to show upward mobility Base Salary - The foundation of any competitive offer Benefits Package - Often the hidden cost that derails negotiations 401(k) and Retirement Planning - Increasingly important for experienced workers Bonuses and Incentives - Performance-based compensation can differentiate offers Paid Time Off - Award based on experience, not tenure Schedule Flexibility - The new battlefield for talent acquisition The Hidden Costs of Benefits Many small business owners underestimate how benefits impact their competitiveness. Consider this scenario: you offer a candidate a $10,000 salary increase, but your benefits package costs them $500 more per month than their current employer. Suddenly, that attractive raise becomes a modest $4,000 increase—likely insufficient to motivate a job change. "Here's the kicker," Harlock notes. "If they're coming from a company that has amazing benefits, and I've seen this happen a lot, this is where small business owners are at a disadvantage." Avoiding Common Hiring Mistakes in Today's Market Small business owners often fall into predictable traps that sabotage their hiring efforts: The "Desperate Candidate" Myth : Assuming unemployed candidates will accept lower offers ignores market realities. Quality candidates typically have multiple opportunities. Slow Decision-Making : Taking weeks to make hiring decisions virtually guarantees losing top talent to competitors who move faster. Lowball Initial Offers : The days of negotiating upward from conservative starting points are essentially a thing of the past. Candidates compare offers side by side and choose the best package. Ignoring Candidate Experience : Poor interview processes can drive candidates away from even prestigious opportunities. A smooth, professional experience often outweighs brand recognition. Underestimating Competition : If you're excited about a candidate, assume other employers are too. Every qualified candidate is likely fielding multiple offers. Focusing Only on Salary : Total compensation packages matter more than base pay. Benefits, flexibility, and growth opportunities can make or break negotiations. Taking Action: Your Next Steps Audit Your Current Compensation Structure Research market rates for your key positions Calculate the true cost of your benefits package Identify gaps where you're losing competitive edge Streamline Your Hiring Process Aim for 5-10 business days from initial contact to offer Create a consistent, professional candidate experience Prepare decision-makers to move quickly on strong candidates Develop Your Seven Candidate Driver Assessment Create templates for evaluating each negotiable element Practice having compensation conversations early in the process Build flexibility into your offer strategy Invest in Your Employer Brand Ensure your company culture attracts quality candidates Develop clear career progression paths Create compelling reasons beyond compensation for joining your team Key Takeaways The hiring landscape has shifted, and successful small business owners must adapt their strategies accordingly. The current 4.2% unemployment rate means qualified candidates remain scarce, despite corporate layoffs making headlines. This reality demands a more sophisticated approach to talent acquisition. Effective hiring in 2025 requires speed, strategic thinking, and comprehensive compensation planning. Businesses that master the Seven Candidate Driver framework while maintaining efficient processes will consistently outperform competitors still using outdated approaches. Most importantly, remember that hiring is now like a competitive sport. "If you're excited about someone, you're talking to someone and you're very excited about getting them on your team, I can guarantee you they are talking to at least one other employer," Harlock emphasizes. The businesses that thrive will be those that recognize this new reality and adapt accordingly. Whether you're looking to scale your operations or simply maintain your current team, understanding these market dynamics is essential for long-term success. Ready to transform your hiring strategy? KeyHire Solutions specializes in helping small businesses navigate these complex challenges. Listen to the full discussion on overcoming 2025 hiring challenges and discover how to build the team your business deserves. Check out our sponsor: Career Spring, Careers launch here: https://careerspring.org/ Connect With Us: KeyHire LinkedIn KeyHire Facebook KeyHire YouTube KeyHire Instagram KeyHire Solutions, Be Our Next Success Story: https://www.keyhire.solutions/testimonials Contact Corey: corey@keyhire.solutions

As a small business owner, you're likely focused on the day-to-day challenges of running your company – hiring the right people, managing cash flow, and growing your customer base. But here's a question that might catch you off guard: What's your exit strategy? In a recent episode of the KeyHire Small Business Podcast , host Corey Harlock sat down with Eric Grafstrom, CEO of The Exit Guide , to discuss how entrepreneurs can package their businesses for a successful exit. The conversation revealed critical insights that every business owner should consider. The statistics are sobering: 85% of small businesses in the U.S. are owned by Gen X and Boomers, with most owners over 60-65. Whether you're planning to retire, pursue new ventures, or simply want to maximize your business value, understanding how to prepare for an exit is crucial for long-term success. The Reality of Small Business Management and Exit Planning Most entrepreneurs focus on business growth strategies, such as scaling operations, refining processes, and expanding market reach. Yet, seasoned business owners understand that building a successful company also involves planning its eventual exit, whether through sale, succession, or other means. The crucial point is that preparing for an exit goes beyond merely finding buyers; it involves strengthening your business fundamentals to add value now while positioning for future opportunities. For companies with revenues between $5-25 million, preparation becomes even more vital. These small businesses are in a sweet spot: large enough to attract serious buyers but lacking the resources of bigger corporations. Here, strategic planning and smart management intersect to ensure readiness for exit. Consider the following key considerations for your business exit: Financial Documentation : Three years of P&L statements, two to three years of filed tax returns, and current balance sheets Legal Documentation : Lease agreements, employee contracts, and other critical business agreements Operational Systems : Documented processes that can function without your constant oversight Team Structure : A management team capable of maintaining operations during transition periods Building a Scalable Business: The Foundation for Future Success The principles of scaling a small business and preparing for an exit are remarkably similar. Both require systems, processes, and teams that can operate independently of the founder. This alignment means that focusing on scalability today sets you up for a successful exit tomorrow. Eric emphasizes the importance of removing emotion from the equation: "Keep in mind, people are buying a business based on cash flow and other things. This is not an end of the market where people are buying opportunity." This perspective should influence how you build your team and structure your operations. Essential elements for building a scalable, exit-ready business include: Documented Processes : Every critical function should have clear procedures that any qualified person can follow Strong Management Team : Develop leaders who can make decisions and solve problems without constant input Diversified Revenue Streams : Reduce dependence on any single client, product, or service Clean Financial Records : Maintain accurate, up-to-date financial statements with professional oversight Compliance Systems : Ensure all legal, regulatory, and tax requirements are consistently met The Strategic Entrepreneur's Mindset: Thinking Long-Term Successful entrepreneurs recognize that each decision influences their future opportunities. This long-term perspective applies to hiring, operational improvements, and strategic planning. By focusing on the end goal from the start, you add value at every phase of your business journey. The talk with Eric highlighted the importance of a preparation timeline. He advises beginning formal preparations at least six months before launching your business. Nonetheless, foundational tasks such as establishing systems, developing teams, and keeping clean records should start well in advance. The strategic entrepreneur's approach includes: Setting specific timeline goals for exit preparation Regular financial health assessments Continuous improvement of operational systems Strategic team development and succession planning Market positioning that demonstrates value to potential buyers This mindset shift from "building a job for myself" to "building a valuable business asset" fundamentally changes how you approach growth challenges. It influences hiring decisions, investment priorities, and strategic planning in ways that benefit your business regardless of your ultimate exit timeline. Avoiding Common Mistakes That Derail Exit Plans The most successful business exits share common characteristics, just as the most problematic ones share predictable pitfalls. Understanding these mistakes can help you avoid them while building a stronger, more valuable business. Critical mistakes to avoid: Procrastination and Poor Planning : "No one wakes up on a Saturday morning and says, 'Well, I think I'm going to sell my house. Let's take a stick a sign in the front yard,'" Eric notes. The same principle applies to business sales. Emotional Attachment Over Financial Reality : Getting too personal about your business value can lead to unrealistic pricing and failed negotiations. Inadequate Financial Documentation : Errors in financial statements or missing documentation can kill deals during due diligence. Lack of Post-Exit Planning : "Have a plan for what you're going to do afterward," Eric emphasizes. "The brain doesn't know that you've sold the business... if that just drops off the table and isn't there anymore, you got to find something to replace it." Premature Market Testing : Discussing potential sales before you're prepared sends signals that you're not a serious seller. Overestimating Business Value : Using emotional rather than market-based valuations leads to unrealistic expectations and stalled negotiations. The interconnection between these mistakes and daily business management is significant. Poor financial practices, inadequate systems, and emotional decision-making that hurt exit potential also limit current business performance and growth opportunities. Taking Action: Your Next Steps The insights from this podcast episode reveal that successful exit preparation isn't about following a rigid checklist – it's about building fundamental business strengths that create value regardless of your timeline. Financial Foundation and Documentation: The cornerstone of any successful exit is maintaining clean, accurate financial records that effectively tell your business's story. This means working with qualified professionals to ensure your books are properly maintained, your tax returns are filed correctly, and your financial statements accurately reflect your business performance. Many business owners discover gaps in their documentation only when they're ready to sell, which can delay or derail potential deals. Operational Independence and Systems Development: Building systems that function without your constant oversight serves dual purposes: it improves your current business operations while making your company more attractive to potential buyers. This involves documenting key processes, developing standard operating procedures, and creating workflows that any qualified person can follow. The goal is to transform your business from something that depends entirely on you into an operation that generates predictable results. Team Development and Leadership Structure: Strong businesses have strong teams, and exit-ready businesses have teams capable of operating independently. This often requires strategic investments in leadership development, clear role definitions, and succession planning for key positions. KeyHire Solutions specializes in helping business owners build these capabilities through targeted human capital consulting and team development strategies. Market Positioning and Value Assessment: Understanding your business's true market value requires objective analysis based on industry standards and comparable transactions. This involves looking beyond your emotional attachment to the business and focusing on the financial metrics that drive buyer interest. Regular business valuations can help you understand how your improvements affect overall value and identify areas that require attention. Remember Eric's advice: "Set a date for which you will be ready to take this business to market." This creates focus and accountability around the preparation process, ensuring that exit readiness becomes an integral part of your business strategy rather than a last-minute scramble. Key Takeaways The path to a successful business exit begins with smart business-building practices implemented today. Whether you're planning to sell in two years or twenty, the fundamentals remain the same: build systems, develop people, maintain clean records, and think strategically about value creation. Essential points to remember: Start preparing at least six months before you want to go to market, but build exit-ready foundations much earlier Focus on cash flow and documented systems rather than emotional attachment to your business Develop a strong management team that can operate independently Maintain professional financial records and legal documentation Plan for life after the business, not just the financial aspects of the sale The intersection of effective small business management and exit planning isn't coincidental – they're two sides of the same coin. By building a business that could successfully operate without you, you create both immediate value and future opportunities. At KeyHire Solutions , we help business owners develop the teams and systems that support both current growth and future exit success. The human capital investments you make today directly impact your business value tomorrow. Whether you're ready to start planning your exit or simply want to build a more valuable business, the time to begin is now. Your future self – and your bank account – will thank you for the strategic decisions you make today. Learn more about Eric: https://exitguide.com/ Check out our sponsor: Career Spring, Careers launch here: https://careerspring.org/ Connect With Us: KeyHire LinkedIn KeyHire Facebook KeyHire YouTube KeyHire Instagram KeyHire Solutions, Be Our Next Success Story: https://www.keyhire.solutions/testimonials Contact Corey Harlock: corey@keyhire.solutions

If you've ever wondered why your clear instructions seem to get lost in translation, or why your team doesn't share your urgency for that "obvious" opportunity, you're not alone. The answer might lie in how your brain is wired differently from your employees—and how this affects your workplace culture. In a recent episode of the KeyHire Small Business Podcast , KeyHire Solutions founder Corey Harlock sat down with Marina Morgan, founder of The Morgan Impact , to explore the fascinating world of entrepreneurial neuroscience. Their conversation revealed why successful business owners often struggle to connect with their teams and what you can do to address this issue. Understanding the Entrepreneurial Brain: What Makes You Different The entrepreneurial brain isn't just a metaphor—it's a scientifically documented phenomenon. Marina Morgan, an organizational psychologist with 15 years of experience, explains that entrepreneurs have measurably different neural pathways than their employees. The Dopamine Difference "The first and most important characteristic is the sensitivity of the dopamine system," Morgan explains. "Your experience, the wave of dopamine, your pleasure, your enjoyment when you achieve results, is much higher than in the average population." This heightened dopamine sensitivity means you literally feel more pleasure from achieving goals than your employees do. While this drives your ambition and risk-taking ability, it also means you can't expect your team to feel the same sense of accomplishment from hitting targets. Faster Processing, More Options Entrepreneurs also exhibit increased activity in the prefrontal cortex, which enables faster thinking and the ability to consider multiple solutions simultaneously. Recent neuroscience research reveals that business owners have significantly more neural pathways between key brain regions responsible for goal-setting and decision-making compared to their managers. This means when you see an "obvious" path to success, your team may genuinely need more time to develop those same neural connections. The Empathy Spectrum Interestingly, entrepreneurs tend to fall into two distinct categories: those with exceptionally high emotional intelligence and empathy, and those who exhibit characteristics more aligned with the autistic spectrum. Both can be highly successful, but they require different communication approaches. How Your Wiring Affects Your Small Business Leadership Development Understanding these neurological differences is crucial for effective small business leadership development. When you assume your team processes information the same way you do, communication breakdowns are inevitable. The Speed Trap Your brain's faster processing can make everyone else seem slow or unmotivated. "You probably can feel that they're too slow, they're not too involved, they're not very motivated," Morgan notes. "That doesn't mean that it's true. That probably means that you are too fast, you are too excited." The Motivation Myth The common refrain "I want you to treat this like it's your business" may be neurologically impossible for most employees. Their brains simply don't produce the same biochemical rewards from business success that yours does. Vulnerability to Burnout Entrepreneurs are twice as likely to struggle with addiction compared to the general population, often becoming addicted to the very act of creating and building businesses. This can lead to unrealistic expectations and burnout—both for you and your team. Creating a Thriving Workplace Culture: The Leader's Emotional Impact Your role as a leader extends far beyond strategy and decision-making. Recent research published in January 2025 shows that the way leaders communicate can literally alter the biochemistry of their employees' bodies. "You are the source of the emotional atmosphere in your team," Morgan emphasizes. "The words that you're using in your communication with your employees and the emotions that you provide for these words" directly affect your team's neurochemistry. The Authenticity Factor Your team can detect misalignment between your words and emotions. If you're stressed but trying to sound enthusiastic, your employees' nervous systems will respond to the underlying stress, not your positive words. This creates a cascade of negative biochemical changes that can impair their creativity, strategic thinking, and overall performance. Building Resilience Through Communication In today's rapidly changing business environment, your ability to create a calm, resilient atmosphere while maintaining high performance standards is crucial. Consider these strategies: Be predictable in your communication patterns - Your team needs to understand what to expect from you Create regular feedback channels - Weekly one-on-ones and monthly brainstorming sessions provide structure Acknowledge your humanity - When you have a bad day, be transparent about it rather than pretending everything is fine Align your stated values with your actions - If you claim to be family-oriented but don't support employees' family needs, the disconnect creates toxic stress Avoiding Communication Mistakes That Sabotage Team Performance Many well-intentioned entrepreneurs make critical errors that undermine their business growth tips and team effectiveness. Here are the most damaging mistakes and how to avoid them: Expecting the Same Dynamic Energy: Stop assuming your team will match your enthusiasm and pace. Their different neurological wiring means they process excitement and motivation in different ways. Being Dishonest About Your True Motivations: If you're primarily profit-driven, own it. Avoid creating a mission-driven façade that doesn't align with your actual decision-making process. Taking Business Rejection Personally: When you identify 100% with your business, every "no" feels like personal rejection. This emotional intensity can create unnecessary stress for your entire team. Ignoring the Biochemical Impact of Stress: Chronic stress shrinks your employees' prefrontal cortex—the area responsible for creativity and strategic thinking. Stressful communication styles make your team less capable, not more motivated. Failing to Recognize Different Personality Types: Not everyone on your team needs to be an entrepreneur. In fact, having detail-oriented, stability-focused employees can be crucial for long-term success. Taking Action: Your Next Steps Ready to transform your communication and leadership approach? Here's your roadmap: Step 1: Assess Your Current State: Take an honest inventory of your communication patterns. Record yourself in team meetings or ask for anonymous feedback about your leadership style. Step 2: Prioritize Your Own Well-being: "You must take care about the main resource that you have—yourself," Morgan advises. "The healthy brain and healthy nervous system make healthy choices." This isn't selfish; it's strategic. Step 3: Learn to Enjoy the Process: Train your nervous system to find pleasure in daily activities, not just end results. Plan moments of enjoyment into each week—this will improve your decision-making under pressure. Step 4: Maintain Your Identity Beyond Business: Set aside 20% of your life for non-business interests. This prevents unhealthy over-identification with your company and provides fresh perspectives for innovation. Step 5: Implement Structured Communication: Create predictable touchpoints with your team through regular one-on-ones and team brainstorming sessions. Consistency reduces stress and improves performance. Key Takeaways The entrepreneurial brain is both your greatest asset and your biggest challenge when it comes to team leadership. By understanding these neurological differences, you can: Communicate more effectively with team members who process information differently Create a workplace culture that enhances rather than inhibits your team's cognitive abilities Avoid the common pitfalls that sabotage even well-intentioned leaders Build a more resilient, high-performing organization Remember, effective leadership isn't about making your team think like entrepreneurs—it's about bridging the gap between different types of thinking to create extraordinary results. Want to dive deeper into this topic? Listen to the full conversation between Corey Harlock and Marina Morgan on the KeyHire Small Business Podcast . For more insights on building stronger teams and scaling your business, visit KeyHire Solutions . Learn more about Marina Morgan: https://themorganimpact.com/ Check out our sponsor: Career Spring, Careers launch here: https://careerspring.org/ Connect With Us: KeyHire LinkedIn KeyHire Facebook KeyHire YouTube KeyHire Instagram KeyHire Solutions, Be Our Next Success Story: https://www.keyhire.solutions/testimonials Contact Corey: corey@keyhire.solutions

The job market in 2025 continues to present unique obstacles for small business owners. While headlines highlight layoffs across major corporations, the reality for businesses with 10 to 50 employees tells a different story. According to recent findings from the National Federation of Independent Business (NFIB), small businesses are facing unprecedented challenges in finding and retaining quality talent. In a recent episode of the KeyHire Small Business Podcast, host and KeyHire Solutions founder Corey Harlock breaks down the latest NFIB data and reveals why traditional hiring approaches are no longer effective. For small business owners generating $5 to $25 million in revenue, understanding these market shifts isn't just helpful—it's essential for sustainable growth. The Current State of Talent Acquisition: What the Numbers Really Mean According to Harlock's analysis of the NFIB's latest findings, the data reveals some startling trends that every small business owner should understand. His breakdown of the report shows that 19% of business owners identified filling jobs as their most important problem. A striking 40% cited hiring challenges as their biggest concern, particularly in the manufacturing, transportation, and construction sectors. Additionally, 38% of owners reported rising compensation costs as a major business challenge. However, here's a crucial insight that many business owners overlook: despite widespread corporate layoffs, the unemployment rate remains at just 4.2%. This means the talent pool remains surprisingly shallow. "We need to change the way we think about this," explains Harlock. "I know a lot of people think, oh, they're laying off. There's going to be a lot of people out there. We can get some good people cheap. Please change that mindset. You're hiring a rental player." By "rental player," Harlock means employees who accept below-market offers out of temporary necessity but will leave as soon as better opportunities arise. As he explains it: "If someone's making $100,000 a year, and you are able to get them because they're unemployed for $90,000, that doesn't mean they're sticking with you. It means as soon as the economy gets better and their company calls them back and offers them $100,000, they're gone." The math is sobering but straightforward. In a strong economy, unemployment typically hovers around 3% to 3.5%. Once you factor in the unemployable population —those without relevant skills or experience —the pool of qualified candidates shrinks dramatically. This explains why businesses continue struggling with hiring despite economic uncertainty. Modern Workforce Realities: How Employee Expectations Changed the Game The Remote Work Revolution Continues The pandemic fundamentally altered worker expectations, and these changes have become permanent fixtures of the employment landscape. Today's job seekers frequently express preferences like: "Unless this job is 100% remote, I'm not interested." "I'm looking for a hybrid role where I can work 2-3 days at home." "Unless it pays really well, I won't consider an office position." The Trades Crisis Deepens Skilled trades face particularly critical shortages. Fire and life safety technicians, security specialists, and traditional trade workers are in extremely high demand. Even trade schools report lower enrollment than desired, creating a supply-demand imbalance that drives wages upward. This shortage creates a domino effect: as businesses compete for a limited talent pool, compensation packages naturally increase. It's not just about the base salary anymore—candidates evaluate total compensation packages, including benefits, flexibility, and growth opportunities. Business Growth Tips: Strategic Approaches to Competitive Hiring Understanding the Seven Candidate Drivers Successful hiring in 2025 requires a systematic approach to compensation negotiation. KeyHire Solutions has developed a framework called the "Seven Candidate Driver Comparison" that evaluates every negotiable element: Title and Career Progression - Candidates want to show upward mobility Base Salary - The foundation of any competitive offer Benefits Package - Often the hidden cost that derails negotiations 401(k) and Retirement Planning - Increasingly important for experienced workers Bonuses and Incentives - Performance-based compensation can differentiate offers Paid Time Off - Award based on experience, not tenure Schedule Flexibility - The new battlefield for talent acquisition The Hidden Costs of Benefits Many small business owners underestimate how benefits impact their competitiveness. Consider this scenario: you offer a candidate a $10,000 salary increase, but your benefits package costs them $500 more per month than their current employer. Suddenly, that attractive raise becomes a modest $4,000 increase—likely insufficient to motivate a job change. "Here's the kicker," Harlock notes. "If they're coming from a company that has amazing benefits, and I've seen this happen a lot, this is where small business owners are at a disadvantage." Avoiding Common Hiring Mistakes in Today's Market Small business owners often fall into predictable traps that sabotage their hiring efforts: The "Desperate Candidate" Myth : Assuming unemployed candidates will accept lower offers ignores market realities. Quality candidates typically have multiple opportunities. Slow Decision-Making : Taking weeks to make hiring decisions virtually guarantees losing top talent to competitors who move faster. Lowball Initial Offers : The days of negotiating upward from conservative starting points are essentially a thing of the past. Candidates compare offers side by side and choose the best package. Ignoring Candidate Experience : Poor interview processes can drive candidates away from even prestigious opportunities. A smooth, professional experience often outweighs brand recognition. Underestimating Competition : If you're excited about a candidate, assume other employers are too. Every qualified candidate is likely fielding multiple offers. Focusing Only on Salary : Total compensation packages matter more than base pay. Benefits, flexibility, and growth opportunities can make or break negotiations. Taking Action: Your Next Steps Audit Your Current Compensation Structure Research market rates for your key positions Calculate the true cost of your benefits package Identify gaps where you're losing competitive edge Streamline Your Hiring Process Aim for 5-10 business days from initial contact to offer Create a consistent, professional candidate experience Prepare decision-makers to move quickly on strong candidates Develop Your Seven Candidate Driver Assessment Create templates for evaluating each negotiable element Practice having compensation conversations early in the process Build flexibility into your offer strategy Invest in Your Employer Brand Ensure your company culture attracts quality candidates Develop clear career progression paths Create compelling reasons beyond compensation for joining your team Key Takeaways The hiring landscape has shifted, and successful small business owners must adapt their strategies accordingly. The current 4.2% unemployment rate means qualified candidates remain scarce, despite corporate layoffs making headlines. This reality demands a more sophisticated approach to talent acquisition. Effective hiring in 2025 requires speed, strategic thinking, and comprehensive compensation planning. Businesses that master the Seven Candidate Driver framework while maintaining efficient processes will consistently outperform competitors still using outdated approaches. Most importantly, remember that hiring is now like a competitive sport. "If you're excited about someone, you're talking to someone and you're very excited about getting them on your team, I can guarantee you they are talking to at least one other employer," Harlock emphasizes. The businesses that thrive will be those that recognize this new reality and adapt accordingly. Whether you're looking to scale your operations or simply maintain your current team, understanding these market dynamics is essential for long-term success. Ready to transform your hiring strategy? KeyHire Solutions specializes in helping small businesses navigate these complex challenges. Listen to the full discussion on overcoming 2025 hiring challenges and discover how to build the team your business deserves. Check out our sponsor: Career Spring, Careers launch here: https://careerspring.org/ Connect With Us: KeyHire LinkedIn KeyHire Facebook KeyHire YouTube KeyHire Instagram KeyHire Solutions, Be Our Next Success Story: https://www.keyhire.solutions/testimonials Contact Corey: corey@keyhire.solutions

Every entrepreneur experiences the painful realization that those who contributed to building the company may not be equipped to elevate it further. This acknowledgment is one of the toughest realities in business growth, yet it's essential to identify when your leadership team has hit its limit to ensure ongoing success. In a recent episode of the KeyHire Small Business Podcast , host Corey Harlock from KeyHire Solutions sat down with Neil Katz, CEO and founder of Exceptional HR Solutions , to tackle this challenging topic. Their conversation revealed essential insights for business owners navigating the complex world of team assessment and strategic hiring. The Reality of Scaling a Small Business Leadership The harsh reality is that what got you here won't get you there . As Neil Katz explains, "When you have five or 10 employees, that same leader in many cases does not have the capability, skills, or background to get you to 100 employees or 1,000 employees or from a million in revenue to 50 million." This isn't a criticism of your current team; it's just the reality of business growth. The skills required to manage a $2 million operation differ dramatically from those needed to run a $20 million enterprise. Your neighbor's cousin, who started with you in the garage, may have given everything they had, but their experience ceiling might not match your business's trajectory. Companies usually transform their entire organization—people, structures, processes, and systems—each time they triple in size. Some exceptional individuals can scale through multiple growth phases, but they're rare. Most leaders hit their natural ceiling, and recognizing this early can save you months of frustration and lost revenue. Overcoming Hiring Challenges: Experience vs. Potential A major hiring challenge for small business owners is the ongoing discussion about whether to hire based on potential or experience. KeyHire Solutions philosophy breaks this down simply: you're either hiring for potential or experience, each with distinct ROI timelines. Potential comes at a lower upfront cost but requires 12-24 months before you see returns. You'll need comprehensive training programs, mentoring resources, and significant time investment. Experience costs more initially but delivers almost immediate ROI. Mistakes are made when companies invest in potential, anticipating the ROI that comes with experience. This leads to a revolving door of letdown hires, as new team members may begin with enthusiasm but soon fall short of expectations. For companies under 50 employees, Neil strongly advises prioritizing experienced talent: "Do we have bandwidth, the resources, and the capacity to train this individual that's 12, 24, 36 months behind where I need them to be? You need to focus on your clients, your investors, your strategy, and the financial components of your business." How to Scale a Business: Strategic Talent Acquisition Approach The Investment Mindset Smart business owners understand there's ROI on talent. When you buy experience in the open market, you're making a strategic investment in your company's future. Yes, it's more expensive upfront, but the alternative – hoping untested potential will develop quickly enough to meet urgent business needs – often costs more in lost opportunities and delayed growth. Beyond the Job Description Effective talent acquisition involves more than just aligning skills with job requirements. It's essential to find candidates whose soft skills, leadership abilities, and core values resonate with your mission. Naturally, they should meet the standard criteria, possessing the necessary competencies, skills, and background. However, consider these expanded factors to ensure they have the qualities that will align with your business and team. The Three-Option Framework When transitioning existing team members, Corey recommends offering three clear paths: Mentorship and development under new leadership Lateral movement to better-suited departments Graceful exit with full support and references While most people initially choose options one or two, the reality is that many eventually move to option three as they struggle with the transition. Avoiding Common Leadership Assessment Mistakes Over-Elevating Too Quickly: The biggest error is promoting people multiple title levels beyond their capabilities. That reliable machine operator who became a supervisor shouldn't automatically become the Director of Operations without proper development. Establish clear competency levels and KPIs before promoting any individual. Letting Subjectivity Rule Decisions: Personal relationships cloud judgment. Neil emphasizes the importance of objective evaluation: "Take the names out. If you were just evaluating the roles without a name, evaluate and ask yourself, is that role achieving the functions I need today and at least the next 24 months ahead?" Equity Complications: Offering ownership stakes to early employees creates additional complexity when changes become necessary. Plan exit strategies for equity holders well in advance, before you need them. Ignoring Red Flags: Most business owners admit they've known about performance issues for months or years before taking action. Trust your instincts and address concerns promptly rather than hoping they'll resolve naturally. Waiting Until Crisis Mode Don't wait until you desperately need new leadership to start looking. Network continuously and build relationships with potential future team members well before you need them. Taking Action: Your Next Steps Conduct an Objective Team Assessment Remove names and evaluate each role based purely on performance metrics Assess whether current capabilities match 24-month business projections Identify skill gaps that could constrain growth Define Your Growth Requirements Map out the leadership capabilities needed for your next revenue milestone Determine which roles need immediate attention versus future planning Create clear job specifications that go beyond basic qualifications Build Your Pipeline Start networking now for future leadership needs Connect with industry professionals who could join your team in 1-3 years Maintain relationships even when you're not actively hiring Develop Transition Plans Create clear communication strategies for team changes Prepare multiple scenarios for existing team members Document processes to minimize disruption during transitions Invest in Current Talent Where Appropriate Consider executive coaching for promising leaders Provide targeted training for specific skill gaps Realign responsibilities to match individual strengths better Key Takeaways The journey from startup to a scaled business requires an honest assessment of your leadership team's capabilities. While it's emotionally challenging to recognize that loyal, hardworking team members may not be equipped for your company's next chapter, addressing these issues proactively prevents larger problems down the road. Remember Corey's insight: "You can't run a $30 million a year business on a $2 million process." The same principle applies to people – you can't scale to $25 million with a leadership team built for $5 million operations . Success in small business leadership development comes from balancing loyalty to existing team members with objective assessment of business needs. Sometimes the kindest thing you can do is help someone find a role where they can truly excel, even if that's not with your company. The entrepreneurs who successfully navigate these challenges are those who act decisively while treating people with dignity throughout the process. They understand that building a scalable business sometimes requires difficult decisions, but they approach those decisions with clarity, compassion, and strategic thinking. Listen to the full conversation with Neil Katz on this podcast episode for more detailed insights into building teams that can scale with your business. Learn more about Neil Katz: https://www.exceptionalhrsolutions.com/ Check out our sponsor: Career Spring, Careers launch here: https://careerspring.org/ Connect With Us: KeyHire LinkedIn KeyHire Facebook KeyHire YouTube KeyHire Instagram KeyHire Solutions, Be Our Next Success Story: https://www.keyhire.solutions/testimonials Contact Corey: corey@keyhire.solutions

Running a growing business with 10-50 employees is like juggling flaming torches while riding a unicycle. You're managing teams, chasing revenue goals, and trying to scale operations—and then someone tells you that you also need to master digital marketing. The result? Most business owners either freeze up completely or throw money at every shiny marketing platform, hoping something will stick. In a recent episode of the KeyHire Small Business Podcast , host Corey Harlock sat down with Corey Morris, Founder of Voltage Digital Marketing , to cut through the marketing noise and reveal what actually works for growing businesses. The conversation revealed why most small business marketing strategies fail—and, more importantly, how to build a marketing strategy that drives real results without overwhelming your already stretched resources. The Hidden Costs of Marketing Mayhem One of the biggest challenges for small businesses isn't having too little marketing—it's having too much unfocused activity. Corey Morris explains the core problem: "There's a disconnect between tactics or activity and ROI. Marketing is this thing we do or this set of activities. And we don't necessarily know how to connect it to ROI. If you're not looking at marketing as an investment with an expected return on investment, it's going to be a painful line item." This disconnect creates a cascade of problems. Business owners often assign marketing responsibilities to existing team members—usually someone who "gets social media"—without realizing they're breaking that person's focus and diminishing their core performance. The result is mediocre marketing that generates vanity metrics (likes, shares, impressions) while your phone stays silent and your inbox remains empty of qualified leads. Even worse, many businesses discover they're actually losing money on their marketing efforts without realizing it. Companies often celebrate metrics like clicks, leads, and even initial sales while failing to track the complete customer journey. When you factor in the true cost of converting those leads, customer acquisition expenses, and long-term retention rates, what appeared to be successful marketing campaigns can reveal themselves to be money pits. How to Scale a Business with Strategic Marketing Planning The antidote to marketing chaos isn't more tactics—it's better planning. Large corporations spend months and hundreds of thousands of dollars on developing their strategies. While those numbers may not be feasible for growing small businesses, a streamlined approach is still needed that balances thoroughness with agility. The Foundation: Know Your Numbers Before diving into tactics, establish clear financial benchmarks that will guide every marketing decision. This foundational step separates successful marketing investments from expensive experiments. Calculate your customer acquisition cost and lifetime value to understand the true economics of your growth. Determine your marketing ROI expectations just like any other business investment. Set clear conversion goals that matter: qualified leads, meaningful sales calls, and closed deals that drive revenue. Most importantly, understand your sales pipeline metrics so you can work backwards from revenue goals to determine the marketing activity required to hit your targets. The Strategy: Document Your Plan Morris emphasizes the critical importance of getting your plan onto paper: "Keep it visible somewhere. Define your ultimate goal and the corresponding strategy. If you can't articulate this like a purpose statement for your marketing, then you're going to chase the shiny objects when they come up." A documented strategy serves as your marketing filter, helping you say no to distracting opportunities and yes to activities that drive results. Your marketing strategy document should answer the fundamental questions: Who are we targeting? (Be specific about your ideal customer profile) What are we offering? (Your unique value proposition, not just features) Where will we reach them? (Which platforms align with your audience and budget) Why should they care? (The problem you solve and the outcome you deliver) How will we measure success? (Specific metrics tied to business goals) Smart Platform Selection for Business Growth Not all marketing platforms are created equal, and choosing the wrong one can quickly drain your budget. The key is matching platform selection to your customer behavior and business model. For B2B companies, LinkedIn typically offers the highest ROI, while Google captures high-intent prospects. However, avoid platform bias when making decisions. Many business owners dismiss platforms based on personal preferences rather than customer data. Your ideal customer might engage differently during personal versus professional hours. A manufacturing executive scrolling Facebook after bedtime might be more receptive to a software demo than navigating LinkedIn's professional noise during business hours. The platform selection process should include: Audience Research : Validate where customers spend time using platform tools Competitive Analysis : Identify competitor successes and gaps Content Compatibility : Choose platforms aligned with your content capabilities Integration Potential : Prioritize platforms sharing content/audiences Budget Allocation : Master 1-2 platforms before expanding The most successful small businesses focus energy on dominating one or two channels rather than spreading themselves too thin. This focused strategy offers improved ROI on both time and marketing investments. Avoiding Mistakes That Sabotage Small Business Marketing Even well-intentioned marketing efforts can backfire without proper execution. Here are the most common pitfalls that derail small business marketing—and how to avoid them: The "Test and Learn" Trap : Constantly experimenting with ad spend without proper research can waste money if you haven't done baseline research first. Too Many Cooks : Trying to manage marketing by committee results in inconsistent messaging and a diluted focus. Assign clear ownership and decision-making authority. Unrealistic Unicorn Expectations : Expecting one person to master every platform and channel leads to burnout and mediocre results across the board. Vanity Metrics Obsession : Focusing on likes, shares, and impressions while ignoring conversion rates and customer acquisition costs. Inconsistent Execution : Starting and stopping campaigns based on busy seasons or budget fluctuations prevents the compounding effects that make marketing profitable. Platform Proliferation : Spreading thin across multiple platforms instead of dominating 1-2 channels. Taking Action: Your Next Steps Ready to transform your marketing from expense to investment? Start with a commitment to the fundamentals. First, honestly assess your current efforts. Calculate the actual cost of your marketing-ad spend, staff time, and hidden expenses. Review six months of activities and trace them to actual leads and conversions. This reveals which efforts generate real ROI versus busy work. Document and maintain visibility of your marketing plan to ensure consistent execution and measurable results. Write down your complete marketing strategy, tactics, and testing plans—whether you handle marketing yourself or delegate it. Keep this documentation easily accessible and visible. Most small businesses struggle with measurement, but this offers the most significant opportunity. Track prospects from their first click to becoming a paying customer. Start simple with existing tools and build consistently. Focus on numbers that impact your bottom line. When launching, resist the temptation to test everything simultaneously. Pick one or two platforms where your ideal customers spend time and master those channels first. Allow a minimum of 90 days for results—marketing's profitable compounding effects need time to build momentum. Key Takeaways The path to marketing success isn't about doing more—it's about doing the right things consistently and measuring what matters. As Morris puts it: "You know what your growth goal is for the next year as a company. Distill that down to what your expectations are for marketing. Understand that for every dollar that you want to spend, how many dollars you need to get back or what that looks like for your return on investment." Marketing is an investment , not an expense—treat it like any other business investment with clear ROI expectations Strategy before tactics —document your plan and use it as a filter for every marketing decision Platform quality over quantity —master 1-2 channels before expanding Measure what matters —focus on metrics that connect to actual revenue, not vanity metrics Consistency compounds —irregular marketing efforts prevent the cumulative effects that drive profitability The marketing landscape will continue evolving, but these fundamentals remain constant. By building a solid foundation and maintaining disciplined execution, you can turn marketing from a source of stress into your most reliable growth engine. Want to dive deeper into building effective systems for your growing business? Listen to the full conversation on the KeyHire Small Business Podcast . Learn more about Correy Morris: https://thedmsp.com Check out our sponsor: Career Spring, Careers launch here: https://careerspring.org/ Connect With Us: KeyHire LinkedIn KeyHire Facebook KeyHire YouTube KeyHire Instagram KeyHire Solutions, Be Our Next Success Story: https://www.keyhire.solutions/testimonials Contact Corey: corey@keyhire.solutions

Imagine this scenario: Your sales director enters the conference room armed with customer feedback and revenue projections. They’re absolutely convinced that maximum flexibility is the key to closing deals and growing the business. Across the table, your operations manager presents equally compelling process documentation and quality metrics. They demonstrate beyond doubt that standardized procedures are essential for sustainable growth. Both leaders are passionate. Both have data. And both are entirely right, from their own perspectives. This is what Dr. Bob Johnson calls being "100% right in a 200% world." The concept is deceptively simple yet profoundly impactful. In any organizational challenge, each stakeholder can be completely correct from their functional viewpoint. This creates what feels like two separate 100% solutions. The problem isn't that everyone is wrong; it's that the problem's definition itself is too narrow to accommodate everyone's legitimate concerns. As Dr. Bob explains, "until they can remember that they have to grow into a 200% version of that problem, they're going to keep arm wrestling over solutions and escalating problems to bosses." In a recent KeyHire Solutions podcast episode , host Corey Harlock explored this phenomenon with Dr. Bob Johnson, founder of Team Transformation . Their conversation revealed why even the most capable leadership teams get trapped in these cycles. More importantly, it showed how business owners can transform conflict into a competitive advantage. The Hidden Cost of "Win and Be Right" Culture For small businesses generating $5 million to $ 25 million in revenue, each leadership decision carries significant weight. When department heads operate from what Dr. Bob calls a "win and be right mindset," the damage extends far beyond individual disagreements. This mindset fosters a defensive culture where leaders become more focused on proving they're not the problem than on solving problems. As Dr. Bob explains, "The biggest source of pain in organizations, particularly at more senior levels, is reputational threats. That somehow my function or my team is going to look like we're the ones that drop the ball." When reputation protection becomes the primary concern, collaboration dies. Department heads come to meetings with their minds already made up, expending energy defending their positions rather than exploring solutions. They listen to respond, not to understand. They concentrate on fixing other teams instead of examining their contributions to the challenge. The business costs are substantial and often hidden. Leaders escalate problems to you instead of addressing them collaboratively, turning you into a full-time referee when you should be driving growth. Critical decisions get delayed while teams debate who is responsible, rather than focusing on what needs to happen. When decisions are finally made, they lack the full buy-in necessary for successful execution. Most damaging of all, your organization loses its creative potential. The breakthrough solutions that could serve everyone's needs never emerge because teams remain focused on winning their individual battles rather than solving the bigger challenge together. This leads to the inability to access the collective intelligence that makes great companies exceptional. Business Growth Tips: Moving from Compromise to Creativity Traditional leadership advice often focuses on finding the middle ground through compromise. Dr. Bob offers a more powerful alternative: "Our world probably needs more of it, but I'm less interested in compromise and more interested in creativity." The difference is profound. Compromise typically means everyone gives up something they value. Creativity means expanding the problem definition until you can solve for everyone's core needs simultaneously. Real-World Example: 100% Perspective (Sales): "We need complete flexibility to customize for clients." 100% Perspective (Operations): "We need standardized processes to maintain quality." 200% Solution: "How do we create flexible systems that maintain quality standards?"  This new perspective creates opportunities that neither party could have imagined independently. The solution might involve modular service components that can be combined freely or at hierarchical service levels, each with distinct quality protocols. The essential approach is to move beyond binary thinking to adopt inclusive solutions. Leadership Development Through the Three Critical Shifts KeyHire Solutions collaborates with numerous growing businesses, and we consistently observe three distinct patterns that distinguish high-performing teams from those mired in conflict cycles. Dr. Bob's framework provides a roadmap for transformation: 1. From Closed to Open The first challenge occurs when teams enter discussions with their minds already made up. Leaders arrive at meetings convinced they have the right answer and spend their time defending their position rather than exploring alternatives. This closed mindset creates defensive conversations where everyone talks but nobody learns. The transformation happens when you coach leaders to genuinely understand opposing viewpoints until they can articulate them so accurately that the other side says, "Exactly." This isn't about agreeing with every perspective but about demonstrating that you truly comprehend the reasoning behind different approaches. When people feel genuinely heard and understood, trust naturally builds, creating the foundation for productive collaboration. 2. From Static to Dynamic The second pattern involves teams getting stuck on the problems they know rather than the problems they need to solve. Department heads become so focused on their immediate pain points that they lose sight of the bigger picture. Sales fixates on flexibility, operations on efficiency, and finance on cost control – each viewing the challenge through their functional lens. The breakthrough comes when you guide leaders to expand problem definitions to include everyone's pain points. Instead of asking "How do we get more flexibility?" the question becomes "How do we create flexibility while maintaining efficiency and controlling costs?" This expanded problem definition naturally leads to solutions that address root causes rather than symptoms, resulting in outcomes that benefit the entire organization. 3. From Problem to Partnership The final shift addresses how teams view each other during conflicts. Too often, leaders see colleagues from different departments as obstacles to overcome rather than partners in problem-solving. This adversarial mindset turns every disagreement into a zero-sum game where one side must lose for the other to win. The transformation occurs when leaders recognize that those who complain most often care most deeply about the business. That passionate operations manager isn't trying to block sales – they're protecting quality standards because they care about customer satisfaction. When you help leaders reframe their perspective this way, conflict becomes a catalyst for innovation rather than a source of dysfunction. Avoiding Common Leadership Mistakes When Scaling a Small Business and When Everyone's "Right" Even well-intentioned business owners fall into predictable traps when their teams clash. Here are the most costly mistakes we see – and how to avoid them: The Referee Leader: Stepping in to make decisions when teams can't agree feels efficient, but it creates dependency and undermines team development. Your $ 200 K+ leaders should be solving these problems, not escalating them. The Hands-Off Approach: Hoping conflicts will resolve themselves rarely works. Problems typically go underground or resurface with greater intensity. The Relationship Band-Aid: Suggesting team members "just get lunch together" addresses symptoms, not systems. Surface-level relationship building doesn't solve structural alignment issues. The Premature Solution: As Dr. Bob notes, we often "believe solutions are more valuable than problems" and rush to fix things before fully understanding what needs fixing. This approach virtually guarantees problems with buy-in later. The Single Perspective Trap: When you consistently favor one department's viewpoint (often sales, given revenue pressures), you may win short-term battles while losing long-term organizational capability. Taking Action: Your Next Steps Ready to transform your leadership team dynamics? The journey begins with an honest assessment of your current situation. Start by identifying your organization's most persistent "here we go again" conflicts – those recurring disputes that seem to resurface every few months, regardless of how many times you think they've been resolved. Take note of the stakeholders involved and their typical positions, but more importantly, recognize your own patterns. Which side do you typically favor and why? Understanding your unconscious biases is crucial because your team will mirror your approach to conflict resolution. Once you've mapped the landscape, begin practicing the "exactly" test with your next team conflict. Rather than jumping into a referee role, coach one leader to articulate their opponent's viewpoint until the other party acknowledges it as accurate. This single practice will feel awkward at first, but it's transformative. You're essentially teaching your leaders to expand their problem definitions to include multiple perspectives, which is where breakthrough solutions emerge. As these skills develop, implement new meeting protocols that require problem exploration before solution generation. Train your leadership team on the three critical shifts framework, emphasizing that problems are more valuable than solutions because all the creativity and partnership potential lies in properly understanding what you're trying to solve. Create accountability measures for collaborative problem-solving, making it clear that bringing solutions rather than problems to your office is now the expectation. A lasting culture change occurs when you regularly acknowledge instances of creative solutions rather than opting for either/or compromises. Share stories of successful cross-functional collaboration in team meetings and company communications. Most importantly, make problem-solving partnership a key leadership competency in performance reviews and hiring decisions. When your team sees that collaborative problem-solving is valued and rewarded, the behavior becomes self-reinforcing throughout your organization. Key Takeaways Dr. Bob's insights reveal a fundamental truth: "The problem isn't the problem. The problem is how we deal with the problem." For small business owners serious about sustainable growth, this distinction is game-changing. Embrace the 200% Mindset : When conflicts arise, expand your problem definition rather than picking sides Develop Internal Capacity : Your leadership team should be solving problems, not escalating them to you Focus on Partnership : The energy behind complaints often reflects deep caring – channel it toward solutions The businesses that thrive in today's complex marketplace aren't those with the smartest individual contributors – they're the ones that harness collective intelligence most effectively. When your leadership team masters the art of collaborative problem-solving, you're not just resolving today's conflicts; you're building tomorrow's competitive advantage. Ready to stop refereeing and start leading? KeyHire Solutions specializes in helping growing businesses develop and hire the leadership talent that drives sustainable success. Because in a 200% world, the companies that win are those that refuse to settle for 100% solutions. Want to dive deeper into these concepts? Listen to the full conversation with Dr. Bob Johnson on the KeyHire Small Business Podcast . Learn more about Dr. Bob: https://teamtransformationmethod.com/ and https://www.linkedin.com/in/drbobjohnson/ Check out our sponsor: Career Spring, Careers launch here: https://careerspring.org/ Connect With Us: KeyHire LinkedIn KeyHire Facebook KeyHire YouTube KeyHire Instagram KeyHire Solutions, Be Our Next Success Story: https://www.keyhire.solutions/testimonials Contact Corey: corey@keyhire.solutions

In today's evolving talent landscape, forward-thinking small business owners are discovering a powerful recruiting advantage: former employees who want to return. Known as "boomerang employees," these returning team members represent an innovative talent acquisition strategy that successful entrepreneurs are using to accelerate business growth and build stronger teams. Corey Harlock, founder of KeyHire Solutions , recently explored this phenomenon in his latest podcast episode, The Boomerang Effect: Rehiring Right or Getting It Wrong? His insights reveal why this approach could be a game-changer for your small business management strategy. Understanding the Boomerang Employee Strategy A boomerang employee is someone who previously worked for your company, left for other opportunities, and now wants to return. The psychology behind it runs deeper than most business owners realize. "It's a rehire. It's hiring someone who used to work for you," Harlock explains. "The concept around the boomerang employee is they leave for greener pastures, they find out it's not so green on the other side, and they realize maybe I didn't have it so bad where I used to be." For small businesses generating $5-25 million in revenue, this trend represents more than just a hiring opportunity—it's a strategic advantage that can accelerate growth while reducing recruitment costs and onboarding time. When valuable employees resign, emotions often override business judgment. The timing is usually terrible, and the personal sting of rejection can cloud decision-making. "When a valuable employee quits, they usually quit at the exact wrong time when you feel like you need them most," Harlock notes. "As a business owner, it can be hard not to take it personally and not be upset about it." Many business owners either walk departing employees out immediately or allow the relationship to sour during the notice period. This emotional reaction can permanently damage relationships with talented individuals who might otherwise return as even more valuable contributors. Why Small Business Hiring Strategies Should Embrace Boomerang Talent Key Advantages of Boomerang Employees: Enhanced Skill Sets : Former employees who return often bring significantly expanded capabilities from their experiences at other organizations Cultural Fit : They already understand your company culture, values, and core business model, eliminating many onboarding challenges Accelerated Integration : Boomerang employees know internal dynamics and can quickly reconnect with existing team members Reduced Risk : Unlike external hires, you know their work ethic, personality, and performance history Cost Efficiency : Shorter training periods and compressed learning curves create compelling financial advantages Consider this scenario: An employee left your $8 million company to join a $50 million organization, where they progressed from individual contributor to management. When they return, they're bringing that expanded capacity back to your business. While you'll likely pay boomerang employees more than their previous salary, the return on investment often exceeds that of new hires. When a high performer leaves, your odds of finding an equally capable replacement are only one in three. Boomerang employees eliminate many of these risks while providing known outcomes. Building Relationships That Support Business Growth The success of any boomerang strategy hinges on how you handle employee departures. This requires a fundamental shift in perspective—from viewing resignations as betrayals to seeing them as temporary career detours. The Professional Departure Process Take a Strategic Pause : Before reacting emotionally, ask yourself: "If they ever wanted to come back, would I bring them back?" Express Genuine Understanding : Acknowledge their decision to leave, even if the timing is inconvenient Recognize Their Contributions : Highlight their positive impact on your organization Maintain Professional Grace : Be honest about your disappointment while remaining supportive Keep Doors Open : Periodic check-ins after they've settled show genuine interest in their success "Take a beat, take a breath, and think, if they ever wanted to come back, would I bring them back?" Harlock advises. "If the answer is yes, we need to treat them with respect and treat them as well on their last day as we did on their best day." This approach involves checking in periodically, after they've had time to settle. A simple email asking how things are going keeps doors open while demonstrating your commitment to professional relationships beyond employment. Evaluating Boomerang Candidates: A Strategic Framework Not every former employee should be welcomed back. Smart business owners evaluate potential boomerang hires against specific criteria to ensure strategic alignment and business value. Experience Assessment : Have they gained transferable skills and knowledge that benefit your current objectives? Look for growth in technical capabilities, leadership experience, or industry expertise that wasn't available when they first worked for you. Cultural Evolution : Are their professional changes compatible with your current company direction? People grow and change—ensure their new perspectives align with where your business is heading, not just where it was. Business Need Validation : Do you have legitimate operational requirements that they can address? The role should align with genuine business needs and growth objectives, not just personal relationships or nostalgia for past performance. Financial Feasibility : Are their salary requirements within your budget parameters? Former employees typically expect compensation that reflects their market growth and expanded responsibilities. Critical Mistakes That Damage Boomerang Opportunities: Emotional Decision-Making : Letting frustration about timing or feeling personally rejected drive your response to resignations Compensation Assumptions : Expecting returning employees to accept the same pay and responsibilities they had before leaving Integration Oversights : Assuming they can immediately operate at full capacity without proper reintegration support Manufactured Positions : Creating roles just to accommodate a boomerang employee's return without a genuine business need The most significant mistake is allowing emotions to drive decisions during the departure process. When frustrated about timing or feeling personally rejected, it's easy to dismiss the employee's contributions or make their final weeks uncomfortable. This reaction closes doors that should remain open for future opportunities. Another common error involves expectations around compensation and growth. Former employees have gained experience and market exposure—they'll negotiate for roles and salaries that reflect their development. Failing to recognize this evolution can lead to failed negotiations and missed opportunities.  Don't overlook the importance of setting clear expectations for returning employees. Your company culture, processes, team dynamics, and business priorities may have evolved significantly during their absence. Implementation Strategy: Your Next Steps Ready to implement a boomerang strategy in your organization? Here's your systematic approach to getting started: Immediate Actions: Audit Current Departure Processes : Review how you currently handle employee resignations and identify improvement opportunities Establish Exit Interview Protocols : Go beyond surface-level feedback to understand real departure reasons Create Relationship Maintenance Systems : Develop simple processes for staying connected with former employees Train Management Teams : Ensure leaders understand the strategic value of professional departures Long-Term Development: Begin with your next employee resignation. Instead of reacting emotionally, pause and ask: "Would I want this person back if circumstances were different?" If yes, focus on creating a positive departure experience that keeps future doors open. Develop systematic approaches to exit interviews that reveal actionable insights. Understanding genuine reasons behind departures helps you address systemic issues that might be driving talent away unnecessarily. Create simple systems for maintaining relationships with former employees. This doesn't require extensive effort—periodic check-ins via LinkedIn, holiday greetings, or sharing company milestone announcements can keep connections alive without being intrusive. Most importantly, evaluate your overall talent acquisition strategies to ensure you're maximizing your chances of finding and retaining top performers from the start. If you're consistently losing good employees, addressing root causes is more effective than simply hoping they'll return later. For small business owners who want to develop more sophisticated talent acquisition approaches, consider partnering with specialists who understand the unique challenges of scaling organizations. KeyHire Solutions works exclusively with small businesses to create custom hiring strategies that support sustainable growth. Key Takeaways The boomerang employee phenomenon offers small businesses a strategic advantage in today's competitive talent market. By maintaining professional relationships with departing employees and creating pathways for their return, you build a talent pipeline that can accelerate business growth while reducing hiring risks and costs. Successful boomerang strategies start with emotional intelligence during employee departures. Treat resignations as temporary career detours rather than personal betrayals and focus on preserving relationships that could benefit both parties in the future. Former employees who return often bring enhanced skills and faster integration times, making them valuable additions to growing teams. The key to effective small business management in this area lies in long-term thinking and strategic relationship building. When valued employees resign, resist the urge to react emotionally and instead consider the strategic value of maintaining positive professional connections. The boomerang approach is becoming a refined strategy that established organizations can use to enhance the strengths and capabilities within their teams. In today's competitive talent market, your former employees might just be your future secret weapon for sustainable business growth. Want to listen to the full conversation? Listen to this episode of The Key Hire Small Business Podcast featuring Corey Harlock. Check out our sponsor: Career Spring, Careers launch here: https://careerspring.org/ Connect With Us: KeyHire LinkedIn KeyHire Facebook KeyHire YouTube KeyHire Instagram KeyHire Solutions, Be Our Next Success Story: https://www.keyhire.solutions/testimonials Contact Corey: corey@keyhire.solutions

As a small business owner looking to strengthen your team, you always seek talented individuals who can drive results and adapt to your company's evolving needs. What if there were a proven talent pool right in your community? One filled with individuals who've already demonstrated their ability to perform under pressure, solve complex problems, and lead teams through challenging situations? That talent pool exists, and it's comprised of the 250,000 military veterans who transition to civilian careers every year. In a recent KeyHire Small Business Podcast episode, host Corey Harlock sat down with Mike Hutchings, CEO of Combined Arms , to explore how small business owners can successfully integrate veteran talent into their organizations. Understanding the Veteran Talent Landscape for Entrepreneurs The veteran talent pool represents one of the most compelling opportunities in today's hiring market. With less than 1% of the American population currently serving in the military and approximately 250,000 veterans transitioning to civilian careers annually, this represents a substantial source of proven talent entering the workforce with leadership experience and specialized skills that many businesses need. What makes this opportunity particularly valuable is the depth of experience veterans bring. Military service develops skills that directly translate to business success: leadership under pressure, strategic thinking, team coordination, and the ability to execute complex operations with precision. Veterans have managed budgets, led diverse teams, and solved problems in high-stakes environments that few civilian roles can replicate. The key to successfully tapping into this talent pool is understanding how military experience translates to business value. Rather than getting caught up in military terminology or rank structures, focus on the underlying competencies: project management, crisis response, training and development, logistics coordination, and strategic planning. Veterans also bring a unique perspective on accountability and results-driven performance. Their experience with clear objectives, measurable outcomes, and team-based success creates employees who understand individual responsibility and collective achievement. T he Hidden Goldmine: What Veterans Bring to Small Business Management When you look beyond the uniform and military terminology, veterans offer a unique combination of skills that directly address common small business management challenges: Problem-Solving Under Pressure : Veterans, particularly those with combat experience, have navigated what Mike calls "VUCA" environments – volatile, uncertain, complex, and ambiguous situations. "I have yet to see replicated anywhere outside of my time in the service," the level of innovation required when "something didn't go according to plan and we had to find ways to instantly adjust, sometimes under direct fire conditions." Natural Entrepreneurial Mindset : Contrary to the stereotype of rigid military thinking, many veterans have extensive experience operating independently. Mike explains that in theater, "you very much become an entrepreneurial force of nature and operate almost as a complete entity... you have this large overarching task and you have to figure out a way to accomplish it." Leadership at Every Level : Military structure ensures that even junior personnel take on significant leadership responsibilities. Veterans understand accountability, team dynamics, and how to motivate others to achieve objectives. Adaptability and Learning Agility : Military careers require constant adaptation to new roles, locations, and challenges. This translates into employees who can grow and take on evolving responsibilities with your business. Practical Small Business Hiring Strategies for Veteran Talent Acquisition Successfully hiring veterans requires a strategic approach that addresses the unique challenges and opportunities this talent pool presents. Here are actionable strategies based on Mike's insights: 1. Connect with Your Local Veteran Community The most effective approach isn't posting jobs on generic boards -- it's building relationships within the veteran ecosystem. Building these connections means attending local veteran organization events such as VFW and American Legion chapters, connecting with veteran-focused nonprofits in your area, and signing up for your state Department of Veterans Services mailing list. 2. Ask the Right Questions During Interviews Don't hesitate to ask about military experience -- veterans want to discuss their service. Mike notes, "I have yet to come across a veteran who doesn't want to talk about their time in service and is not open to answering questions about their time in service." During interviews, focus on specific responsibilities and leadership roles they held, problem-solving examples, decision-making under pressure, team management and conflict resolution experiences, and how they adapted to new environments and challenges. These conversations will help you understand what they did and how their military experience translates to your business needs. 3. Maintain Professional Standards While supporting veterans, don't lower your hiring standards. "Not all transitioning service members are going to be great employees at your company just because they served," Mike warns. You should still ask the hard questions. You should still ensure that that individual has researched the company and understands certain things." Setting Realistic Business Management Expectations Once you've hired a veteran, success depends on setting appropriate expectations for integration. Transitioning from military to civilian work involves more than just changing jobs – it's a complete lifestyle adjustment. The Integration Timeline: Instead of establishing rigid timelines for veteran integration, focus on creating a flexible, mentorship-based approach. A dedicated mentor working alongside the veteran during their first few months adds value for both the business and the veteran by facilitating smoother transitions and quicker immersion. Implement regular check-ins at 30 and 60 days to assess progress, target specific performance metrics, and maintain open conversations about expectations and adjustments. Understanding Different Military Backgrounds Not all military experience is the same. Veterans who serve in combat environments may have different skill sets than those who remain stateside. Combat veterans often excel in unstructured, problem-solving environments, while others may thrive in more structured roles. Understanding these differences helps you place veterans in positions where they'll succeed. The Importance of Open Communication "Open and honest conversations and malleability are what would be mutually respected from both sides," Mike emphasizes. Rather than assuming you know what a veteran needs, create space for ongoing dialogue about challenges and adjustments. Avoiding Common Hiring Mistakes Based on Mike's experience working with both veterans and employers, here are the key mistakes to avoid: Veteran-Side Mistakes: Not doing enough homework on available transition resources Failing to translate military experience into civilian terms Over-emphasizing military identity instead of relevant business skills Employer-Side Mistakes: Giving veterans a "pass" in the interview process due to their service Assuming all veterans have the same background and skills Being either too rigid or too accommodating without finding the right balance Taking Action: Your Next Steps If you're ready to tap into veteran talent for your business, start with these immediate actions: Research local veteran organizations and attend one networking event within the next 30 days Review your job descriptions to ensure they're veteran-friendly and clearly explain role requirements Develop a mentorship program or identify team members who can support veteran integration The talent shortage affecting small businesses isn't going away, but the solution might be closer than you think. By effectively connecting with, interviewing, and integrating veteran talent, you can solve persistent hiring challenges while building a stronger, more resilient team. Your business can play a crucial role in that transition while gaining access to some of the most capable and dedicated professionals in the workforce. Key Takeaways:  Veterans represent an untapped talent pool with proven leadership and problem-solving skills, perfect for growing businesses Successful veteran hiring requires community engagement and understanding of military-to-civilian translation challenges Proper integration involves mentorship, open communication, and realistic expectations rather than rigid timelines or special treatment Want to listen to the full conversation? Listen to this episode of The Key Hire Small Business Podcast featuring Mike Hutchings. Learn more about Mike: https://www.combinedarms.us and https://www.linkedin.com/in/mbhutch/ Check out our sponsor: Career Spring, Careers launch here: https://careerspring.org/ Connect With Us: KeyHire LinkedIn KeyHire Facebook KeyHire YouTube KeyHire Instagram KeyHire Solutions, Be Our Next Success Story: https://www.keyhire.solutions/testimonials Contact Corey: corey@keyhire.solutions