Every business needs workers and customers. Turning to Statistics Canada, look for population trends to confirm the region or city that will supply both workers and customers. Your investigation may have provided some insight into the turnover rate in the proposed business. Often young people working at their first job are willing to accept a starting wage but they likely have an eye on higher wages through a promotion or a new employer. On the other hand, older employees are more often in established positions, commanding higher wages, with lower turnover. Regardless of age, most innovation often comes from employees.

Education may also be partly responsible for innovation as it allows a variety of opportunities for students to think analytically and critically while collaborating with peers. It would be helpful to know the education levels of the people where your business is located.  Progressive employers develop a culture of innovation. By respecting employee ideas and implementing as many as practical, a culture of innovation will be created.

Continuous improvement can be noticed through tweaking products, introducing new products and stopping obsolete ones. For example, a baker with a single product, English T Crumpets, may not have a bright future without continuous improvement and reinvestment. An Industry Canada study revealed that from 2009 to 2011, 38% of small businesses and 56% of medium-sized businesses made at least one of these types of innovations (Industry Canada, 2013, page 17).

Wages are a key element in employee attraction and retention. It is important to understand the hidden cost of employee benefits beyond the base salary. Benefit plans enhance the pay package. Statutory benefits paid partly by employers include Canada Pension Plan and Employment Insurance. It is also important to know what the competitors pay as employees will seek out the best remuneration package.

Employee Wages

The Small Business Profile 2014 report states that 2013 BC annual average earnings are $39,244 for small business compared to large business $48,933 (Small Business BC, 2014).

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NOTE

One observation in The Small Business Profile 2014 report is the 4% increase in small business wages is less than the 14% increase in large business (Small Business BC, 2014). This may be a factor in attracting talented individuals.

Consider the training required to develop key employees and how many are needed in the business. A key employee should be able to keep the business “on course” for at least one week with a minimum of supervision. Also, consider the training time for a new employee and if the key employee would be the trainer. In general, the degree of complexity of a position will be reflected in the wage package. It is important to look ahead to confirm your source of future employees.

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