How to Retain Quality Employees in Your Service Business


Technology-enabled service marketplaces have seen exponential growth in recent years in the US. According to the Bureau of Economic Analysis, the food-delivery and ride-share companies have acquired billions of dollars in funding, the digital economy accounts for around 7% of the economy.

From an expert point of view, this could mean that the service businesses aren’t using technology to optimize and improve their business models to attract more qualified and skilled workers. From auto repair services to beauty treatments, one of the main challenges for businesses in the service marketplace is retaining quality labor.

Before proceeding to the best practices for employee procurement, it is important to discuss the current gig economy.

According to the recent news, ride-share organization battle with lawmakers over workers’ classification and profile independent contractors as undervalued members.

Some stories rarely make the difference between qualified and unqualified service workers in today’s gig economy. Skilled service workers have the option to work in traditional firms, however, some choose gig work as it allows them to operate as a small business owner with higher earnings and more flexibility.

According to a report by McKinsey Company in 2016, independent contractors who partake in the gig economy report greater profits and satisfaction with their position than workers who work gigs because there were no other options left.

Researchers found that workers who decided to be a part of the gig economy are happier with their decision than their colleagues with similar skills and qualifications in 9-5 jobs.

I’ve taken the time to observe the independent service workers and from what I can see they have plenty of options and more importantly are in high demand.

In order to capitalize on unexplored technology opportunities, entrepreneurs should consider the popular labor pool alongside their tech pack.

The first step to growing a network of quality workers is clearing a platform that allows competitive earnings, as well as, an understanding that experienced workers have more options.

Here are a few tips to follow if you want to attract and retain quality workers and build a successful business.


#1. Work With Small Business Owners

Before you start acquiring quality workers, you need to come up with a strategy. For starters, you can work with small business owners.

In the skilled service marketplace, the winner-take-all approach can be a losing game. Instead, you may consider reaching out to a traditional company to offer your platform as an option for more customers and income.

You may find success in partnering with independent and small mechanic shops instead of focusing on putting them out of business. This is not a good strategy for you.

It is more beneficial to see shops as partners rather than competitors.

By working together, you can accomplish more.

#2. Attract Talent

When calculating a skilled employee’s market rate, consider all options the worker can work with your business company. Attracting talented workers is possible with competitive wages.

Paying competitive wages will help you source better-skilled workers and ensure high-quality results.

Workers are usually happier when they won’t need to work during the weekends or work excessive hours from Monday to Friday. This may lead to injuries and errors and you don’t want this for your employees.

In order to set these competitive wages, take a look at what traditional employers in your niche are paying and consider the experience, skill set, and opportunity cost.

#3. Create New Skills Criteria

You can try to attract quality workers who might not fit your company’s established standards. For example, if you are sourcing from a supply of uniquely skilled employees, consider expanding the group to employees based on the number of hours they have worked in your niche.

Sometimes, broadening the group and including overlooked but qualified workers are what your business needs. You never know who can help your business grow.

By creating new core skills criteria, you will be able to attract people with a unique set of skills who can help you take your company to the next level.

#4. The Importance of Customer Service

If your marketplace has any similarity to the customer service-centric approach, your skilled workers are an important touch point in the client journey.

According to the experts, it is important to filter for workers with a customer service mindset.

Establish a set of operating procedures for your business company that guarantees you deliver a high level of professionalism when it comes to customer service for both your customers and your fleet.

The popular concept of SOP is applicable to various customer service issues, including candidate skills (or experience) criteria and customer service problem resolution.

#5. Find and Retain Skilled Workers

I’m sure you are familiar that worker turnover can slow growth and momentum and lower morale. It has been established that competitive wages are important if you want to find and retain quality workers. Well, engagement is just as important as wages, especially if you want to build long-term relationships and collaboration.

You can throw celebrations, appreciation dinners, host forums to nurture feedback, send gift bags, and etc. The relationship you build with your team can be the main key to scaling your network of contractors and emphasizing your product to transform your platform into a helpful tool for your employees’ success.

Each new business in the service industry is a unique organization that will eventually evolve after some time. A fair and transparent model can be used for skilled service marketplaces.

These models offer earning potential for quality service providers to the end customer by using technology to enable mobile services.


By following these five tips, you will be able to attract, as well as, retain skills workers in your service business.