How SMBs Attract and Hire Elite Talent Without Breaking the Bank

Replacing experienced employees is tough enough, especially when you’re a small or medium-sized business (SMB) competing against large companies for top-notch workers.

Add in the need to fill new roles—like integrating AI into your business or bolstering cybersecurity—and the challenge grows.

But don’t throw in the towel just yet. The right people are out there, and they’re within reach—you just have to know where to look.

Why hiring feels so hard for SMBs

Even the giants with their deep resources have trouble filling roles. But SMBs may feel they have more disadvantages such as:

• "We can’t compete with their salaries and perks." Budget constraints limit SMBs from matching pay or corporate benefits.
• "Our brand isn’t as well-known." Job seekers might pass over SMBs for big-name employers that look better on their resume.
• "We can’t offer the same career ladder." Fewer management layers and roles make workers concerned about job growth and security.
• "People think we’re not as innovative." Many forget that today’s big companies started small, disrupting industries just like you aim to.
• “Adding headcount is risky.” SMBs can’t afford having a bad hire tie up a significant chunk of the budget.

Creative workarounds

Fat paychecks and fancy perks aren’t the only way to attract workers at the top of their game. You can win by turning your flexibility and scrappy nature into competitive advantages.

Show how each employee’s work matters

Everyone wants to feel like their work makes a difference. So highlight how their contributions will have an impact.

Let’s say you’re a health-tech startup revolutionizing rural health care with AI. Then showcase how they’ll lead groundbreaking projects that could save thousands of lives each year.

Offer work-life setups they’ll love

Remote work, flexible schedules, and respecting boundaries (e.g., no emails after 5 p.m.) go a long way in winning over top-tier talent.

Remember why “coffee badging” (showing up for appearances, not productivity) became a trend when companies demanded workers return to offices? People want flexibility. In fact, 75% of employees say flexibility around when and where they work is important for staying in the job.

While some people may want 100% remote work, others may want the option to work from home two days a week. Or have the ability to log off at 3 p.m., pick up their kids from school, and then log back in later that night. There are no hard and fast rules, so find a cadence that works for them and the business.

Expand the talent pool with remote resources

If your local talent pool feels tapped out, it may be time to widen your search. Consider how New York City has only so many AI modelers—and how the big players are already after them. But if your tech and processes support remote work, you could find someone just as qualified in, say, Wichita, Kansas.

Enabling remote work expands your chances of finding the ideal person who’s also within budget. Be sure onsite and remote teams collaborate seamlessly by investing in remote collaboration tools, updating workflows, and shifting cultural mindsets.

For detailed tips, check out the guide, How To Collaborate Effectively With Remote Teams. 

What’s more, remote resources aren’t just about tech—they’re also the talented people behind the work. We’re talking about freelance professionals.

Freelancers are such a vital part of the workforce that more than half of C-suite executives (51%) admitted they’d struggle to run their business without them.

Tailor jobs to their goals

Show a potential hire that your business supports their aspirations by customizing roles to match their desires. Say you’re trying to attract an AI specialist who values hands-on work and ownership over outcomes, for instance. You could invite them to codesign your company’s AI roadmap and include an equity package tied to the success of your AI initiatives.

Championing a candidate’s needs may include those you can’t directly fulfill. If they dream of starting their own business in a few years, offer chances to develop leadership, financial, or data analysis skills that will help them succeed.

It might feel counterintuitive to prepare someone for their next big move. The thing is, they’re going to leave at some point, whether for another job or their own venture. When you support their aspirations and desires, they feel valued and seen. In return, they’ll likely give you their best while they’re with you.

Support the whole person

Stand out by offering perks that go beyond the basics—think pawternity leave, childcare subsidies, or learning stipends for personal and professional growth. The key is to show you care by offering benefits your employees truly value.

Photo by urtimud.89

Although Patagonia isn’t an SMB now, they’ve been offering tailored benefits since they were an ambitious upstart. 

Many of their employees are socially and environmentally conscious outdoor enthusiasts. Patagonia aligns with their (and the company’s) values by offering perks like paid activism hours so employees can give back to their communities, field days to test gear, and team activities focused on environmental work. Perhaps the most unique is bail assistance for employees who encounter legal trouble while advocating for their beliefs.

Listen to Work Week: How Do Work Innovators Prepare for Economic Headwinds?

Mitigate risk with short-term commitments

Hiring mistakes are costly for any business, but they can hit SMBs especially hard when budgets are tight. Understandably, hiring managers may be slow to add headcount as they worry: What if they don’t work out? Will I have enough work for them long term? Is this the most strategic role to invest in?

Meanwhile, the work still needs to get done. Here’s how to move forward while minimizing risk: Hire workers on a project or contract-to-hire basis. These arrangements let you test out candidates, ensure a mutual fit, and adapt your team as business needs evolve.

That’s how PerfectServe, a platform for health care professionals, found the perfect full-time employee. They contracted Kristen, a freelance talent acquisition professional, to fill a critical gap. “The reality is that I wouldn’t have been able to hire a recruiter at Kristen’s level if it hadn’t been a short-term position,” said Jessica Khawaja, the company’s VP of people operations.

When a full-time role opened, Kristen’s exceptional performance made her the natural choice. Transitioning her from contractor to full-time was seamless, thanks to Upwork’s contract-to-hire option. “It was just a button,” Jessica said. “It was the easiest thing ever to actually make it happen.”

‍See the full case study.

The new hiring reality

The job market is evolving rapidly, and businesses are scrambling to find both soft and hard skills that extend beyond AI, according to a recent in-demand skills report. To keep up, businesses must rethink how they search for and hire workers.  

The new reality is that you’re not competing for people anymore; you’re competing for skills. Skills are the key to success. And staying ahead means bringing in the right expertise exactly when you need it. Whether it’s for a few days, a few months, or a full-time role.  

C-suite leaders know they can’t only rely on traditional hiring methods anymore. In fact, 81% of executives are shifting to skills-based hiring. That is, they’re focusing on what workers can do rather than their degrees or job titles.  

Hiring for skills is where freelance professionals give you an edge. They enable you to quickly and cost-efficiently access the experts that spark innovation and drive growth. For example, Kim Darling, CEO at Emerald Tiger, leans on freelancers to help grow her lifestyle brand:

“Through Upwork, I can access high-caliber talent with the same level of creativity, experience, and professionalism as the specialists I worked with when I was a VP at a large tech company. It’s amazing.”

The simplest way to access proven experts

Finding, vetting, and onboarding freelancers can take a lot of time—but it doesn’t have to. Finding the perfect professional is simpler than ever with Upwork Business Plus.

Here’s how Business Plus helps you work with top-quality freelancers faster:

• Top-tier professionals. Connect with Expert-Vetted freelancers—the top 1% of talent on Upwork.
• Customized matching. Talent Specialists personally source and vet freelancers to ensure they can do what you need them to do, and within budget.
• Fast results. Receive a curated shortlist, handpicked by real people, within two business days.

There’s no subscription fee or upfront cost to get started with Business Plus. So, you can start working with seasoned experts today.  Visit Upwork Business Plus for details.