Unleashing Potential: Building a Thriving Workforce for Your Michigan Small Business

In today’s dynamic and competitive business environment, the adage rings truer than ever: your people are your greatest
asset. For small and medium-sized businesses (SMBs) across Michigan, cultivating a strong and engaged workforce isn’t just a desirable goal—it’s the bedrock upon which sustainable success and growth are built.

At the recent Michigan Celebrates Small Business event, I had the privilege of leading an interactive workshop titled “Unleashing Potential,” which delved into this critical area. The energy in the room was dynamic as fellow SMB owners and leaders engaged in lively discussions, shared real-world challenges and collectively explored solutions to navigate the complexities of talent management.

A key takeaway from the workshop, and a principle we champion at iCOR Solutions, Inc., is that SMBs, despite potential resource limitations compared to larger corporations, hold unique strengths that can be strategically and creatively employed to attract, retain and develop top talent by deeply understanding their employees’ aspirations.

Attracting Top Talent: Thinking Beyond the Big Bucks

One of the key challenges SMBs often face is competing for talent with larger organizations that can offer higher salaries and more extensive benefits packages. However, as we discussed in the “Unleashing Potential” workshop, compensation is just one piece of the puzzle. SMBs can shine by focusing on other compelling aspects of their employee value proposition:

• Leveraging Your Unique Company Culture: Small businesses often foster a more close-knit, family-like atmosphere. Emphasize this in your recruitment efforts. Highlight opportunities for more direct collaboration and a stronger sense of belonging.
• Utilizing Social Media Effectively: In today’s digital age, social media is a powerful and cost-effective tool for reaching potential candidates. Showcase your company culture, employee successes and open positions through engaging content. Think beyond job boards and actively build your brand presence online.
• Crafting Compelling Employee Value Propositions: What makes your SMB a great place to work? It might be flexible work arrangements, opportunities for rapid career growth, the chance to work on diverse projects or a strong commitment to work-life balance. Clearly articulate these benefits in your job postings and throughout the recruitment process.

According to a 2024 Employee Turnover Survey by ASE, a Michigan employer association, the most common reason for employee turnover in Michigan was better salary/compensation. However, the survey also highlighted that employers are increasingly focused on improving the onboarding experience (63%) and conducting compensation and benefit reviews (63%) as key steps to reduce turnover, suggesting a multi-faceted approach to talent retention.

Retaining Your Best Employees: Cultivating Loyalty and Engagement

The cost of employee turnover can be significant, impacting not only your bottom line but also team morale and institutional knowledge. The “Unleashing Potential” workshop emphasized that retention starts with creating an environment where employees
feel valued, supported and have opportunities to grow:

• Creating a Positive and Engaging Work Environment: Foster a culture of respect, open communication and collaboration. Encourage teamwork, celebrate successes and create opportunities for social interaction. A positive atmosphere makes employees feel more connected and invested in the company’s success.
• Fostering Open Communication: Regular and transparent communication is crucial for building trust and keeping employees informed. Encourage feedback, actively listen to concerns and provide regular updates on company performance and goals.
• Recognizing and Rewarding Employee Contributions: Acknowledging and appreciating your employees’ hard work and dedication can go a long way in boosting morale and loyalty. This doesn’t always require significant financial investment. Simple gestures like verbal praise, public recognition or small tokens of appreciation can have a big impact.
• Providing Opportunities for Professional Growth: Employees want to feel like they are learning and progressing in their careers. Offer opportunities for skill development, mentorship and internal promotions. Even within the constraints of an SMB, creating pathways for growth can be a powerful retention tool.

Data from Michigan Works! Southeast indicates that the estimated median turnover cost per worker for employers in their region is around $4,000, encompassing hiring search costs, training and lost productivity. This underscores the significant financial implications of failing to retain valuable employees.

Developing Your Workforce: Investing in Future Success

Investing in your employees’ development is an investment in your company’s future. The “Unleashing Potential” workshop explored practical and budget-friendly approaches to continuous learning:

• Mentorship Programs: Pairing experienced employees with newer team members can facilitate knowledge transfer, provide guidance and foster a sense of support.
• Cross-Training Initiatives: Expanding employees’ skill sets through cross-training not only makes your workforce more versatile but also provides employees with new challenges and opportunities for growth.
• Utilizing Online Resources: The internet offers a wealth of affordable and even free training resources. Encourage employees to take online courses, attend webinars and explore industry-specific learning platforms.
• Identifying Individual Employee Strengths and Creating Personalized Development Plans: Take the time to understand each employee’s unique talents and career aspirations. Work with them to create personalized development plans that align with their goals and the company’s needs.

The “Unleashing Potential” workshop at the Michigan Celebrates Small Business event served as a powerful reminder that building a thriving workforce is not just about filling positions; it’s about cultivating a team of engaged, skilled and motivated individuals who are invested in your SMB’s success. By embracing creative strategies, fostering a positive work environment and prioritizing employee development, Michigan’s small businesses can unlock the full potential of their people and thrive in the competitive landscape. The insights shared offer a valuable roadmap for SMBs looking to build a stronger future, one talented individual at a time.

At iCOR Solutions, Inc., we understand that a highly skilled and engaged workforce is a significant driver of financial success. We are committed to working with businesses to help them bridge the gap needed to maximize their capital impact, recognizing that strategic staff development is a key element in achieving sustainable growth and a strong return on investment. We strive to guide businesses on their growth trajectory, ensuring their people are empowered to contribute fully to their financial objectives.

By Frank Cox; originally published in SBAM’s July/August 2025 issue of FOCUS magazine

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