Congratulations! You're succeeding, and need to hire help! Wait...what?
As a business owner, you are well aware that as you grow, you will need to hire employees. For a small business, each new person you hire will have a significant impact on your company, which means the stakes are high.
In fact, small businesses face some unique challenges when it comes to hiring. Hiring your first employee will be the most significant step, but the challenges remain even beyond that first member of your growing team.
There are insurance issues to take into account, how to recruit employees for small businesses, how to attract employees, the costs involved in the hiring and training processes, and how to find the right employees for the job. These points are more significant for a business, as compared to a large corporation where new recruits may join the company on a daily or weekly basis. A small business hiring employees is taking a significant risk. You need to know what to expect and how to hire good employees before you begin the process. Here are some small business hiring tips to help you along the way.
How Hiring Impacts a Business
There are many factors to take into account when hiring employees for your small business.
Let’s have a look at some of these challenges:
- Cost: It's important to understand the costs involved in the hiring process. An employee's cost includes much more than their salary. You also have to pay for the recruitment process, training, onboarding, new equipment and more. All of these costs of hiring a new employee can come up to even more than the employee’s salary!
- Time to Productivity: You also have to remember that during the first month your new employee works, they will only function at around 25% productivity while they are still learning how to do the job. It can take up to around five months before a new hire reaches full productivity.
- Insurance: There are two types of insurances that you need to take into account when hiring staff for small business. The first is the benefits that you will need to pay and these include healthcare. It's also important to remember that you may need to add insurance policies to what you already have. This is particularly true when hiring your first employee. Check out tailored business insurance policies to see what will be the most suitable for your business. Here are some types insurances you may need to consider or adjust when you hire new staff:
General liability insurance - This protects your business if you or your employees cause damage to someone else or their property.
Property insurance - Hiring new employees will require you to buy new equipment and this needs to be added to your existing policy.
Worker’s compensation - This provides coverage if an employee is injured on the job.
- Company culture: There is no way to deny that hiring employees impacts the culture of any company, especially businesses. It is important to find a way to streamline new hires into the company in the least disruptive way possible.
Small Business Hiring Tips:
Here are some small business tips and hiring strategies for small business to make hiring for your small business as smooth as possible and set you up for success:
1. Use Your Contacts
Contacts and personal recommendations are a great way to find employees. Contact people you already have established relationships with, and people that you trust, to find the right person to join your business. You'll have a strong reference built-in, and know that you can trust someone if they came through a personal connection.
2. Provide a Clear Job Description
The best way to have the right people apply for your job is to be clear about what the job entails. Include the job description, a day-to-day list of responsibilities, how the job fits into the overall company, and any specific skills that are needed. That way, you limit applicants to people who will be suitable.
3. Search in the Right Places
Find out where the people you are looking for will be and go there. This might be a physical location or an online meetup or social media space. For example, there’s no point looking for a painter at a conference for sales reps, but if you need college students for part-time work, a local college at lunch hour might be just the spot
4. Wait for the Right Person to Come Along
You made the decision to hire because you need someone, but it's important to remember that you don’t need to settle for a candidate just because they applied for the job. Make sure that your new hire offers what you’re looking for. We mentioned above that hiring staff for business is risky and you want to get it right the first time.
5. Be Clear About Your Company Values
You need to be attractive for employees in order to get people to apply to work for you. Unfortunately, it can be much easier for corporations to attract employees with the benefits and resources that just don’t exist for smaller businesses; however, your company's culture and values, potential for growth and investment in employees can be a big draw for some people, and highlighting those benefits is one of our best small business hiring tips.
Hiring is a challenge for any business, no matter the size. By paying attention to these small business hiring tips, though, you will prepare yourself for success, no matter how big your team gets!