Is your business ready to add new employees? Finding and hiring the right staff is a key part of running any successful business. However, making a bad hire can cost your business 30% of your employee’s first-year earnings, according to the U.S. Department of Labor. So it’s crucial that you take the necessary steps to help reduce the number and frequency of bad hires.
Here are five tips for small business owners seeking to hire top talent.
1. First things first: meet state and federal regulations.
“The rules are different when you start hiring employees. Get started with these hiring steps from the Small Business Administration. You may also want to network with fellow owners of growing small businesses to share advice on the most helpful accountants, background check providers, and so on.”
2. Assess your business needs.
“When hiring someone, it’s not just about finding anyone, it’s about finding the right employee for the job and the overall business. Start the hiring process by taking a deep dive into what your business needs. Think about the role you’re trying to fill. The more information you have, the more you can narrow down the recruitment process. Consider the following factors:”
- Skills and knowledge you feel your business is missing
- The problems you’re currently facing
- What type of team members do you already have
- Your hiring goals
- Where are the gaps in your business
3. Don’t rush.
“Like other aspects of running a business, hiring all comes down to planning. If you’re desperate and feel you have to hire the first candidate you see, you’re unlikely to get the best person for the job. Instead, give yourself time to create a hiring plan. This technique will help you proceed methodically, allowing you to get to know people and attract the type of candidates who appreciate order and organization.”
4. Write a compelling job description.
“Before writing the job description, have clarity on what the candidate expects from you. Research the latest candidate expectations, the competitive offers and perks they get, the roles they are offered, the courses and training materials, career growth opportunities, and so on. It is not just about what you can derive from the candidate but what you can offer them. Tell them why they should join you.”
5. Use the small business hiring process to grow your network.
“Obviously, the goal of hiring is to bring someone great into the fold to help your business. But the small business hiring process can also be a chance to widen your professional network. In addition to advertising job openings outside of your company, be sure to ask current employees and business partners if they might know any good candidates. Even if word of mouth doesn’t directly lead to a hire, you might make some valuable contacts to use down the road.”
Need a Loan to Jumpstart Your Employee Hiring Efforts?
Some of our small business hiring suggestions may require money upfront. But the investment will pay off over time as staff turnover costs are reduced and retention rates increase. That’s because it costs more to hire new employees than it does to retain current employees.
First Union Lending can provide business funding to hire and train new staff. We have a wide variety of loan types to choose from. A lending specialist can help you find a loan, which will let you put some of our employee hiring tips into place.