Episode 7 - People First - Attracting and Keeping the Right Talent

What happens when your best people walk out the door? For many small businesses, it’s not just a staffing issue, it’s an operational crisis. Are you one of them?

In this episode, I share Maria’s story, a bakery owner whose staffing changes triggered far more than a few job postings. Recipe failures, broken supplier relationships, and overwhelmed teams quickly followed. If you’ve ever felt like your business is only as strong as the people behind it - you’re right.

Tune in for a practical guide to building a people-first culture that strengthens your business resilience, improves customer loyalty, and helps you sleep better at night.

🧠 What You’ll Learn

• Why small businesses may actually have the edge in attracting great talent
• The real cost of turnover (hint: it’s more than money)
• The 5 R’s Framework: Right-size, Reach, Retain, Relate, Results
• Early warning signs of talent trouble
• A 30-60-90 day plan to attract, engage, and retain the right people

👀 Red Flags to Watch For

• Sudden disengagement or attitude shifts
• Increased sick days or tardiness
• A spike in quality issues

🛠️ Your 30-60-90 Day Talent Strategy

30 Days: Check-ins + job description audit
60 Days: Create growth plans + referral systems + process documentation
90 Days: Evaluate hiring strategy and team culture

💌 Questions? Feedback?
Reach out at anca@3pimpactconsulting.com - I’d love to hear from you.

🎧 Listen now - and take the first step toward a more resilient business.

I am the founder of 3P Impact Consulting and I help small businesses build long-term resilience through sustainable practices. I adapt tools used by big corporations to fit the reality of purpose-driven small business owners - so they can grow with confidence, even in uncertain times. 

💻 Learn more about my work at www.3pimpactconsulting.com/services
📬 Subscribe to my blog and newsletter at www.3pimpactconsulting.com/resources

Transcript

Episode 7: People First - Attracting and Keeping the Right Talent

Hello and welcome back. I hope you are staying cool out there. As I am recording this episode, it's over 100 degrees Fahrenheit where I live. Please be safe.

Today I want to talk about something that keeps many small business owners up at night: finding and keeping good people.

Let me start with a story that is actually a pretty common scenario. A few months ago I was talking with Maria. Maria runs a small bakery. In a six week period, she lost her head baker, her morning shift manager, and a weekend counter associate. Not because of anything dramatic - just life happening. The baker got a better offer across town, the manager's spouse got transferred for work, and the weekend associate decided to go back to school.

And you know what really hit Maria hard? It wasn't just the scramble to replace them. It was everything else. The head baker took with him the knowledge of how to adjust recipes for humidity changes. The manager had built relationships with the main suppliers. The weekend associate always remembered the regular customers' orders and made them feel special.

Suddenly, Maria wasn't just short-staffed - she was dealing with recipe failures, confused customers, and a team that felt overwhelmed and demoralized. What started as a staffing problem became an operational crisis.

If you're nodding along, you're not alone. This happens a lot. 

So stay tuned. Today we're going to talk about how to build a people-first culture that makes your business more resilient, your customers happier, and your life as a business owner a whole lot easier.

[intro]

What We'll Cover Today:

In the next 20 minutes, i’m going to cover:
● Why small businesses actually have hidden advantages in attracting talent
● The real cost of high turnover - and it's way more than you think
● The 5 R's framework for building a strong team: Right-size, Reach, Retain, Relate, and Results
● Red flags that signal talent problems before they become crises
● Your 30-60-90 day action plan for improving your talent strategy
● And five things you can do this week to start building a people-first culture

Why Talent Matters for Small Business Resilience
Ok, Let's start, and first I’ll address this dangerous myth: "We can't compete with big companies for talent because we can't match their benefits packages."

In reality, small businesses have unique advantages that big companies can't match. You can offer things like direct impact, personal growth opportunities, flexibility, and genuine relationships that get lost in corporate bureaucracy. Trust me, I’ve worked in Corporate and I’ve seen this first hand. And I’m not talking bad about being a Corporate employee, it can work great for some, but they can’t offer what you offer. 

First, let's talk about why this matters so much for business resilience. When Maria lost those three employees, the real cost wasn't just the recruitment and training expenses - though those were significant. Industry studies show that replacing an employee typically costs 50 to 200% of their annual salary when you factor in recruitment, training, and lost productivity.

But the hidden costs are even bigger. There's the knowledge that walks out the door - like that baker's understanding of recipe adjustments. There's the relationship capital lost - those supplier and customer connections that take months to rebuild. There's the impact on your remaining team, who now have to work harder while you're scrambling to fill gaps.

And there’s one thing most business owners don't consider: the opportunity cost. When you're in constant firefighting mode, replacing people and retraining, you're not growing your business. You're not improving your operations. You're not building the sustainable, resilient company you set out to create.

The good news is that when you get this right, when you build a stable, engaged team, - it creates a positive cycle. Good employees attract other good employees. Happy teams provide better customer service. Consistent service builds customer loyalty. And loyal customers provide the stable revenue that lets you invest more in your business.

The 5 R's of Talent Strategy
You may be thinking - “yes, I want that, but how do I do it?”

Well, i’ll tell you right now. I'm going to share with you a framework I call “the 5 R's of talent strategy”. These are five areas where small businesses can compete - and often win - against larger companies.

The first R, R1, is Right-Size Your Expectations

The first mistake I see small businesses make is over-specifying job requirements. They post job descriptions asking for five years of experience, a college degree, and expertise in six different software programs - for an entry-level position.
When you do this you eliminate great candidates who could learn quickly and grow with your company. Meanwhile, the people who do meet all those requirements? They're probably overqualified and will leave as soon as something better comes along.

What to do instead? Focus on core competencies and cultural fit. What does someone really need to succeed in this role? Usually, it's problem-solving ability, willingness to learn, and alignment with your values. Skills can be taught; attitude is much harder to change.

I know a small manufacturer who was struggling to find a production coordinator. They had a list of requirements a mile long. When they stripped it down to the essentials - attention to detail, ability to communicate clearly, and comfort with technology - they found a great candidate who had restaurant management experience. Different industry, but the core skills transferred perfectly.

This week's action item for this R is to pick one job description and remove any requirements that aren't absolutely essential. Ask yourself: "Could someone learn this on the job if they had the right foundation?"

The second R, R2 is Reach Beyond Traditional Channels 

You may be inclined to post a job online and hope the right person finds it. That's like throwing a message in a bottle into the ocean and expecting it to reach exactly the right person.

Instead, try to leverage your existing networks. Your best hires often come through referrals from current employees, customers, or suppliers. Create a simple referral program - it doesn't have to be fancy. Maybe it's a small bonus for successful referrals, or just recognition for team members who help you find great people.

Look for partnerships with local schools, community colleges, or training programs. I met a small retail chain owner who partners with the local community college. They offer internships and often hire their best interns full-time. It's a pipeline of trained, motivated candidates who already understand their culture.
Consider remote or flexible arrangements where possible. Not every role needs to be in-person all the time. Being flexible about work arrangements can dramatically expand your candidate pool.

And don't underestimate community connections. Join local business organizations, attend Chamber of Commerce events, and participate in community activities. The person you meet at a volunteer event might become your next great hire.

This week's action: Identify one new channel for finding candidates. Maybe it's reaching out to a local school, or asking your best employee for referrals, or joining one professional organization.

Ok, we got to number 3, R3 -  Retain Through Recognition 

While compensation matters, studies consistently show that people leave managers and companies, not jobs. They leave because they don't feel valued, don't see growth opportunities, or don't feel connected to the work.

Recognition doesn't have to cost a lot. It can be as simple as acknowledging good work publicly, giving people challenging projects, or asking for their input on business decisions. People want to feel like they matter and that their work makes a difference.

You can create clear growth paths, even in a small business. This might mean cross-training opportunities, taking on additional responsibilities, or supporting external learning. A bakery I know sends their staff to specialized baking workshops and then features "Leo’s new sourdough technique" on their social media. The employee feels valued and grows professionally, and the business benefits from new skills and marketing content.

This week's action: Implement one simple recognition practice. Maybe it's a weekly team shout-out, or featuring an employee's story in your newsletter, or just making sure you say "thank you" specifically for good work.

Now, R4. R4 is Relate Through Culture 

People stay for relationships. They stay because they feel connected to their teammates, to you as the owner, and to the mission of the business.

This means creating psychological safety - an environment where people feel comfortable asking questions, making mistakes, and bringing their authentic selves to work. In small businesses, you have an advantage here because you can create genuine personal relationships in ways that big companies can't.

Regular check-ins are crucial, and I don't mean annual performance reviews. I mean every couple of weeks have a 15-minute conversation where you ask: "How are things going? What's working well? What's frustrating you? What would help you do your job better?"

Team building doesn't have to be expensive. It can be as simple as celebrating birthdays, having lunch together occasionally, or taking 10 minutes at team meetings for people to share something good that happened to them recently.
Share your story and your why. Help people understand not just what you do, but why you do it. When people feel connected to the mission, they're more likely to stick around through challenging times.

This week's action: Schedule a 15-minute check-in with each team member. Ask them one question: "What's one thing we could change that would make your job better or more meaningful?"

And the last R, R5 - Results Through Development 

Finally, invest in your people's growth. This doesn't mean expensive training programs. It can be as simple as cross-training so people can learn new skills and provide backup for each other.

Create informal mentorship by pairing experienced employees with newer ones. Support external learning - maybe you pay for an online course, or give people time off to attend workshops, or reimburse professional association memberships.
Document your processes so that knowledge doesn't walk out the door when someone leaves. But involve your team in creating those documents. Ask them to write down their tips and tricks. This helps with knowledge retention and makes people feel valued for their expertise.

Set development goals with each person. Even if it's simple: "Over the next six months, Sarah wants to learn inventory management, and Jose wants to develop his leadership skills." Then check in regularly and support their progress.

This week's action: Ask each team member what they'd like to learn or get better at. Pick one person and one skill to start with.

Red Flags: Early Warning Signs
Ok. What about red flags? Here are some warning signs that can indicate talent problems in early stages:

• Watch for changes in engagement. People who used to participate in meetings become quiet. Employees who used to take initiative start doing the bare minimum. 
• Also, pay attention to attendance patterns. Increased sick days, more tardiness, frequent requests for time off - these can indicate disengagement before someone actually quits.
• Another one is to listen to what people say and how they say it. More complaints, less collaboration, negative comments about the business or customers.
• Quality issues can also be indicators. When good employees start making more mistakes or missing deadlines, it's often because they're mentally checking out.

And this is not a warning sign, but an important step to help you learn about potential issues - exit interviews. They don’t need to be formal. Even informal ones work fine, if not better. Ask people why they're really leaving. Look for patterns. If three people leave because they felt micromanaged, that's feedback you need to act on.

Let’s talk about your 30-60-90 Day Action Plan 

Here's how to get started:

First 30 days: Assess your current team. Who are your key players? What are their goals? Have those check-in conversations I mentioned. Review your job descriptions and remove unnecessary barriers.

60 days: Start building systems. Create a simple development plan with each person. Establish a referral program. Document key processes so you're not dependent on any single person.

90 days: Evaluate your hiring practices and company culture. Are you attracting the right people? Are you creating an environment where people want to stay? Plan for continuity - who could step up if key people leave?

Let’s Recap
In this episode we learned about Maria’s story when 3 of her employees left their roles and the impact this had on her, the rest of the team and the business.

We talked about the 5Rs framework, “the 5 R's of talent strategy”,  that could help you build a people-first culture. These are: 

• R1 - Right-Size Your Expectations
• R2 - Reach Beyond Traditional Channels
• R3 - Retain Through Recognition
• R4 - Relate Through Culture
• R5 - Results Through Development

Then we talked about red flags that could signal problems in early stages: changes in engagement, attendance patterns, increase in negative comments and decrease in quality work.

And finally, I provided a 30-60-90 days action plan to help you get started.

If you want to start right now, go for it! (this Week's Action Items) 

Let me give you five specific things you can do this week:
1. Have one meaningful conversation with each team member about their goals and frustrations.
2. Review one job description and remove requirements that aren't essential.
3. Implement one simple recognition practice - maybe a weekly team shout-out.
4. Document one critical process that only one person knows.
5. Set up a simple referral system - even if it's just asking your best employee to recommend people they'd like to work with.

Closing & Next Episode Preview
Remember Maria from our opening story? Six months later, she tells a different story. She implemented many of these practices - simplified her hiring requirements, created cross-training programs, started having regular check-ins with her team. When her current head baker decided to cut back to part-time, Maria was ready. Two team members had learned key skills, they had processes documented, and the transition was smooth.

Building a people-first culture isn't just about being nice - it's about building resilience into your business. When you invest in your people, they invest in your success.

And you know how else you can build resilience? One word - community. I’ll start working on my next episode soon, and Episode 8 is called "Stronger Together - Serving Your Community and Your Customers." We'll explore how building strong relationships outside your business creates a foundation that supports everything inside it.

Until then, remember: your people are your greatest asset, but only if you treat them that way. Thanks for listening, and I'll see you next time.

[outro]