How small businesses can find qualified employees

The article is paid for by ZipRecruiter

Finding the right employee in a competitive job market is a challenge for any employer, but it's especially hard for small businesses that lack name recognition and recruitment budgets.

When it comes to attracting talent, that means the little guy has to work smarter. With the right strategies and tools, though, you can do more than just compete — you can stand out.

"Small businesses often struggle with brand awareness compared to corporate giants," Nicole Bachaud, a labor economist with ZipRecruiter, told CNBC Select. "They can't always outspend the competition, but they can out-maneuver them."

Smaller companies typically lack the visibility of established firms and have fewer resources to devote to recruiting.

More than a third (34%) of small business owners say they have openings they can't fill, according to the National Federation of Independent Business's April 2026 jobs report. Of those, 87% reported receiving few or no qualified applicants.

Still, being smaller has its advantages — including greater flexibility, more hands-on work, tighter-knit teams, direct access to leadership and a mission-driven workplace culture.

These qualities appeal to job seekers, according to Bachaud, especially recent college graduates.

"Early talent is more likely to consider small businesses that put strong values front and center," she said.

To compete with the big guys, small businesses need to be more strategic about recruiting.

● Lean into your strengths. "Highlight the ability for employees to have a seat at the table and see the direct impact of their work," Bachaud said. "This is something large corporations often lack  and something early talent is specifically looking for."

● Use hyper-local targeting. Focusing on candidates nearby can help small employers recruit more effectively. Localized job alerts and location-based targeting allow businesses to reach workers within commuting distance, which can lower the cost of recruiting, limit incompatible matches and speed up the hiring process overall.

● Move quickly. Larger companies often have multi-step hiring processes that can drag on for weeks or even months. Small businesses can more easily streamline decision-making and extend offers faster, an advantage when candidates are weighing multiple opportunities. Nearly half of job seekers (49%) expect to hear back from prospective employers within three days of applying, according to ZipRecruiter's Q1 2026 Job Seeker Confidence Survey. They value constant communication throughout the process, Bachaud said, so delays can cost a business strong candidates and negatively impact its reputation.

Automation has enabled small businesses to step up their recruiting efforts.

1. Reach

The right online job platform can help a small business expand its reach and compete with larger players that have dedicated recruiters. With a single click, for example, ZipRecruiter can post a listing to 100+ job boards. That kind of distribution normally takes a lot of money and effort.

"ZipRecruiter gives a 10-person startup the same distribution power as a Fortune 500 company," Bachaud said. "Our reach and speed can make a huge difference for businesses."

2. Efficiency

AI-powered job platforms can streamline the hiring process. ZipRecruiter's central dashboard consolidates your hiring workflow into one place, allowing you to:

• Review applications
• Track candidate status
• Communicate with job seekers
• Schedule interviews
• Get feedback from team members

Not seeing the applicants you're looking for? ZipRecruiter's Invite to Apply tool scans its resume database for skills, experience and fit, then flags "passive candidates" who could be a great match but haven't applied.

According to ZipRecruiter, companies that use Invite to Apply receive eight times as many quality applicants.
 
"Our AI does the heavy lifting of sourcing and initial vetting, effectively acting as a virtual HR assistant," Bachaud said.

3. Cost

Budgets are tight when you're still in growth mode, so your hiring strategy needs to be cost-effective. While some platforms rely on fluctuating pay-per-click pricing, ZipRecruiter plans offer flat monthly rates for unlimited applicants.

Fill your position quickly? You can use that job slot to post another job opening. (Daily rates and free trials are also available.)

Hiring qualified employees isn't easy for small businesses. But by leaning into what makes you unique and using the right tools, you can gain a competitive edge. ZipRecruiter can help amplify your reach, streamline your process and support your hiring goals without requiring a dedicated HR team.

Catch up on CNBC Select's in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date.