The Best Small Business Hiring Practices

Untitled design In a poll taken by, small business owners stated that hiring new employees was their biggest challenge of 2015 with growing revenues and increasing profits coming in at close second and third place, respectively. And there’s no guessing game as to why. The Department of Labor estimates employee turnover and bad hires could cost a company 30 percent of its yearly earnings ( Adding a new employee means adding a new paycheck amount to payroll, fringe and benefits, loss of time needed to mentor, train, and guide, etc. All of these things hit a small business owner’s wallet harder than that of a larger corporation, so it’s even more important to a small business that a new hire is a good fit, there for the long haul, and profitable. Of course, there is no perfect hiring guide. As a small business owner, there is rarely (if ever) free time to peruse the average 250 resumes a job post will receive, interview the top candidates, perform background checks, call references, and the list goes on. But there are smart practices to help you with the process and provide you with the best candidate for the job. 1. Write a job description, not a job brief. What we mean by that is – be descriptive! If you provide a thorough job description, there leaves little room for surprise for the new hire. Before posting, circulate what you’ve written among employees that will be working with this new hire to ensure you’ve left nothing out. This will also keep your team informed of the expectations of the new employee. 2. Consider posting outside traditional recruitment venues. In 2015, 73% of job seekers that fall in the millennial age range found their last job by searching social media channels. discovered “employers who used social media to hire found a 49% improvement in candidate quality over candidates sourced only through traditional recruiting channels”. If traditional recruitment channels haven’t returned what you’re looking for, it’s time to branch out. LinkedIn has great resources, including a free guide, for small businesses looking to hire here. Arkansas capital small business loan 3. Ensure the candidate fits the company culture. As a small business owner, you set the vibe. Are you a “structured 8 – 5, two 15 minute breaks, 30 minute lunch” company? Are you a “Google company-inspired, take naps for better productivity” business? Most people would agree that their business culture falls somewhere in the middle of these two extremes, but what’s important is to know your company personality before adding someone to the mix. A small business often functions like a blended family and a candidate who is perfect on paper isn’t always going to work realistically. We’re not recommending you hire clones of you and your current employees. We’re recommending you hire ones who, whether similar or opposite to you, can hang in there in the 12th hour of a business deal and at the company picnic. Topgrading is a good resource to guide you through the interview process. Arkansas capital small business loan Information provided by SCORE and SBA