CULTURE, NOT PERKS, MOST IMPORTANT TO RETAIN EMPLOYEES.

• Author: Stewart, Heather
• Position: Around Utah

Salt Lake City -- As a small business, how can you attract and retain top-notch employees? That was the key question tackled during a breakout session at the SALT LAKE CHAMBER Small Business Summit.

With the unemployment rate in Utah hovering at record-low levels, attracting and keeping top talent is top of mind for all business owners. But it can be especially challenging for smaller companies.

"At Underbelly Creative we're ... trying to compete with the larger companies as far as compensation and benefits packages, which is seemingly impossible for a small business like ours," said Anthony Lagoon, CEO of UNDERBELLY CREATIVE, a digital design and development company with roughly 20 employees.

Nevertheless, Lagoon said he tries to keep Underbelly Creative's compensation as competitive as possible. The company also offers perks like "loads and loads" of free snacks and beverages--including homemade iced coffee--along with a foosball table. The office itself offers an enticing work environment with high ceilings and lots of natural light.

"But all those things are superficial," he said. "You have large corporation that have way more than that ... and the culture is horrible."

What really helps attract and retain employees is corporate culture. "We've asked our people through surveys and reporting, first of all, what drew them to Underbelly and then what is keeping them at Underbelly, and nine times out of 10 it goes back to the culture," said Lagoon.

"It's really the cultural things: the way we handle projects, the way we work with each other--even the way our desks are sitting. How we sit and work with each other on a daily basis is pretty huge," he added. Culture can be a nebulous concept. It encompasses the work environment, a sense of teamwork and camaraderie, and even the fact that management will actively discipline or remove people who aren't performing.

Once a problem employee has been let go, "there's often a big sigh of relief" among the team, said Lagoon. With that realization, Lagoon said he has been moving quicker to terminate employees who are causing drama or not pulling their weight.

"Sometimes that's the greatest thing you can do for your business," agreed Darin Piccoli, owner of live music venue THE STATE ROOM. "Usually, you needed to do it six months before you did it."

That's why part of creating a strong culture is being willing to address problems head on. "I'm definitely more open to just being frank with...