David Vs. Goliath: In Small-Business's Corner

By DAVE SIMANOFF The Tampa Tribune

Published: Jul 2, 2007

Lee Wolfson offers his employees dental coverage, health care and profit-sharing plans.

He doesn't manage the local office of Ernst & Young. He's not the senior partner of a Tampa law firm. He's not vice president of the Tampa operations of IBM.

He owns Vinyl Fever, the south Tampa music shop mainstay that presents itself as the alternative to the big-box CD warehouses. In this compact Henderson Boulevard store, the loudspeakers are loud, the music selection is eclectic, and the customers are studious as they flick-flick-flick their way through racks of used and new CDs.

"I think many would be surprised by the benefits that are offered by many independent businesses," Wolfson said.

Wolfson is one of thousands of owners of small, independent businesses in the Tampa Bay area that compete with large corporations not just for customers, but also for workers. It's a problem that's especially acute, given that unemployment in this area has been holding steady for several years, which means there's not a particularly large pool of candidates roaming around looking for work.

Owners of these independent retailers, restaurants and professional agencies admit they're in a David-and-Goliath struggle: They don't have the advantages of gigantic human resources and marketing departments and can't always match their competitors' salaries and benefits.

But what fun is a David-and-Goliath struggle if David doesn't win - at least some of the time?

Small business owners say they're attracting and retaining talented, loyal, passionate workers by emphasizing the differences that set them apart from the large corporations: more individuality, a close-knit work force, a familylike atmosphere, flexibility, a greater role in making decisions.

"I think independent businesses can be like families, and with that comes a more personal and emotional investment in the employees. And the employees themselves feel a sense of pride and ownership in the business," Wolfson said.

Vinyl Fever has five employees. Wolfson doesn't see the big music store chains as his competition for workers.

"We don't have much turnover here at Vinyl Fever, but there seem to be no shortage of music fanatics who want to work here," he said. "We usually have a stack of resumes on file of people to call when the opportunity arises, and we are always accepting resumes."

And the music stores in the malls? The big-box retailers such as Best Buy and Circuit City?

"I don't view us as in competition with them on the labor front," Wolfson said.

"We don't need large quantities of people but need all our employees to be of high quality. Our business is based upon our enthusiasm for music - and related pop culture - and we've often been able to meet our labor needs by hiring customers who want to work here for the same reasons they shop here."

Drawn To The Store's Mission

A few miles away, at Inkwood Books in south Tampa, co-owner Carla Jimenez shrugs off any talk of being at a disadvantage for labor against competitors such as Barnes & Noble and Borders.

"I think it's a false premise to think that we're having trouble; we have greater stability, greater longevity with our employees," she said.

Inkwood's three employees have been at the store for one, three and four years; it also has two co-owners who work at the store, and several former workers still help out on weekends and during peak periods.

"The kind of people that apply for a job at Inkwood have already made a decision that they want to work for a locally owned independent store," she said. "They are already buying into our mission."

At Inkwood, like at Vinyl Fever, turnover is low, and there's a stack of resumes of potential candidates waiting to fill any positions that open up.

"We start with a world of people that are interested in us - not just interested in a paycheck," Jimenez said.

How To Compete

Small business owners looking to succeed in the labor market must remember that compensation is only part of the solution, said David Sikora, director of Gevity HR, a Bradenton company that provides human resources and personnel services.

If a small firm can't offer a candidate as much money or as many benefits as a large company, it may be able to offer more responsibility, a better job title or greater chances for growth and advancement, Sikora said.

Many small firms also can offer a friendly, familylike work environment and a comfortable culture.

Small business owners also should look at themselves as full-time "corporate talent scouts," networking for potential hires all the time instead of just trying to fill positions when they open. Today, networking and nontraditional recruiting sources such as online communities engender greater results than classified newspaper ads, Sikora said.

Research done by Gevity HR and Cornell University shows it's important for small business owners to hire people who fit well into their firms' culture and interact well with other employees. The research says that small businesses also benefit from familylike working environments, where a lot of information is shared with workers and employees know one another socially.

The results: faster sales growth, higher profit growth and lower employee turnover, Sikora said.

Maryann Ferenc, owner of Mise en Place restaurant in Tampa, agrees it's important for small businesses to hire talented, passionate staff members.

"Retention is a huge issue, and good and accurate hires are important," she said. "You have to share your corporate culture, your vision and your personality with folks during the interview process."

It's OK to pick a candidate who fits in with employees, as long as the decision doesn't discriminate against any of the classes of people protected by civil rights legislation, said Theresa Gallion, managing partner for the Tampa and Orlando offices of law firm Fisher & Phillips.

"Smaller employers often are much more concerned with who fits in with their culture, and as long as their rationale is not stereotypical or illegal, they're able to do that," she said.

Large Employers' Lure

Large employers bring a lot to the bargaining table, too. Starbucks, which boasts 100,000 workers, offers benefits such as health care and a stock investment plan to employees working 20 hours or more a week.

In addition, the company is regularly recognized as one of best employers in the United States.

"We recognize it's good for business, it's good for partner morale, and it signifies our culture - our partners come first," said Chris Cindrick, marketing specialist for Starbucks Coffee Co.

Despite the allure of the major employers, there doesn't appear to be any shortage of people who want to work for small, independent businesses, either. Wolfson said his employees like feeling they have an active role in running the store - merchandising, policies, decision-making. And that allure, he said, isn't going away any time soon.

"Our store, like many independent businesses, has a personality all its own that you won't find in big-box or chain stores. Hopefully it's a likable one!"