Large employers win the surveys because candidates know the name and assume the salary. A small business cannot compete on either, and does not need to. What it can offer is the thing larger organisations struggle to provide: real responsibility early, visible impact, access to the person making decisions, and flexibility that does not require a policy committee.
Those are genuine advantages if you present them as such.
Know what you are actually competing on
Candidates weigh pay, security, development, the work itself and how they will be treated. A small employer loses on the first two and can win on the last three, so the pitch should be built around them rather than apologising for the salary.
Be honest about the trade. Someone who wants a large structured graduate programme will not be happy in a five-person business, and hiring them anyway wastes both parties’ time.
Offer what large employers cannot
Responsibility within months rather than years, seeing the effect of your work on an actual business, direct access to the owner, and genuine flexibility on hours and location decided by one person rather than a policy.
For many capable people, particularly those who have worked somewhere large and found it slow, that is a better offer than a higher salary elsewhere.
Pay properly for the scarce parts
Benchmark against the specific skill rather than a general average, particularly for technical and trade roles where scarcity sets pay regardless of the size of your business.
Where you cannot match, be transparent about it and compensate in other ways rather than hoping the candidate does not notice. Underpaying quietly produces resignations you did not see coming.
Make the basics good, because they are visible
Correct pay on time, written particulars, accurate records and lawful deductions are the minimum, set out by the Department of Employment and Labour. Getting them wrong signals disorganisation faster than anything else.
Development is the cheapest retention tool available, and levy-paying employers can recover part of their training spend through their sector authority, with the framework held by the Department of Higher Education and Training.
Frequently asked questions
Can a small business compete for good staff?
Not on salary or brand. It competes on responsibility, visible impact, access to decision-makers and genuine flexibility.
What should the pitch be?
The advantages a large employer cannot offer, stated directly, rather than an apology for the salary.
Should I hire someone who wants a corporate environment?
No. It wastes both parties’ time. Be honest about the trade during hiring.
How should I set pay?
Against the specific scarce skill rather than a general average, particularly for technical and trade roles.
What is the cheapest retention tool?
Development, part of which levy-paying employers can recover through their sector authority.
Originally published in June 2018. Updated September 2026 into guidance on competing for staff as a small employer.
