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SBA BDO, Banking, California

The Booming SBA BDO Market In California

SBA BDO, Banking, California

At Johnson Search Group, one of the areas we specialize in recruiting for is SBA Business Development Officers. As we talk with our clients and candidates, we understand the vital importance of small businesses within the California market. In 2015, California small businesses employed 7.0 million people or 48.8 percent of the private workforce. Since then, the labor market has only continued to grow!

Today, small businesses make up 99.8 percent of all companies in the state. And California’s GDP grew at a rate of 3.5 percent through the third quarter of 2018, outpacing the U.S. national growth rate of 3.4 percent. It’s no coincidence that San Jose, CA was named the 2nd top city for small businesses in 2019! While this growth is incredible for small business, it’s putting a strain on the SBA BDO talent market. And it’s causing fierce competition to hire qualified Business Development professionals. But what exactly is driving this growth?

Rapidly Advancing Technology

With the advancement of technology like virtual reality, artificial intelligence, and 3D printing, many small businesses are innovating how they work. Along with new technology comes lower barriers to entry. This makes it easier than ever for people to achieve their dream of starting a small business. High-tech companies make up nearly 12 percent of private-sector companies in San Jose, the highest concentration in the U.S., and almost three times higher than the national average. Just in the greater San Jose area, there are more than 6,600 technology-focused companies.

Diverse Workforce

In 2018, the top state for loan applications from women-owned businesses was California, with 13 percent. Nationwide, 1,821 new women-owned businesses were launched every day, with optimism the highest on record. Furthermore, women of color founded 64 percent of those businesses.

As of 2015, California boasted 1.6 million minority businesses. “California, Texas, New York, and Florida, the nation’s most populous states and home to nearly half of all minority residents, had the largest number of minority-owned businesses.”

Competition For Talent

While the entire U.S. is in a candidate-driven market right now, the competition is even more fierce in California. In a labor market this competitive, it requires more time and effort to fill critical positions with qualified talent. “Some entrepreneurs view the competitive labor market as an opportunity to improve their internal processes and position themselves advantageously for the future.” And while small businesses are forced to compete with large public companies, partnering with a recruiter can make a world of difference.

The recruiters at Johnson Search Group understand the markets you work in every day. In the SBA BDO space, we sympathize with your efforts to find great Business Development Officers. However, we also go a step further to immerse ourselves in the clients we partner with. So as your team hustles to keep up with the growing demand, we’ll be by your side providing the qualified talent you need to continue driving business.

job market

How to Capture Talent in The Commercial Lending & SBA Space

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The recruiting market in the Commercial Lending/SBA space is on fire. Banks are desperately scrambling to capitalize on the small business growth in the market. Every bank and credit union today is looking for growth in this space. If you want to capture top talent for your financial institution, you must be willing to be flexible with your hiring process and budget.

Have an efficient hiring process

Make sure you are prepared to interview and hire that talent in very little time. With the job market so hot, the “A-players” are off the market in as little as five days. For example, I recently placed a $20 million SBA BDO candidate to a bank and they went through the interviewing process and hiring process all within four days.

My client knew that if they didn’t move quickly, they would have to compete with other institutions, and as a result, could be faced with a bidding war. And when that happens, the candidate often decides to not accept the offer. In other words, you have to be confident in the criteria you are looking for in a candidate.

You have to pay to play

Talent today costs money, and sometimes BIG money. Candidates that are producing big results and really moving the bottom line are being highly compensated. That means you need to be ready to fork over the top end of your salary range, and sometimes, even expanding that range. Because of our candidate-driven market, banks and credit unions are going to have critical job openings open longer if they aren’t willing to make some adjustments. As a result, traditional recruiting methods aren’t as effective. To keep the top talent interested, you have to be willing to pay them well.

We work with our clients to help them move that needle as needed. However, with a top-tier recruiter, they can still find those hidden gems. The best candidates are becoming harder to find, but they are not completely out of reach. Pay for performance is a trend we are seeing more and more, and it doesn’t look like it’s going away anytime soon.

To hire (and retain) the talent your organization so gravely needs, it may be time to work with a professional. The best candidates are the ones that are not even on the market. If you want the best candidates that are ready to make an impact on your company, it may be time to partner with a recruiter that specializes in your field.

Let’s work together