Human Resources: Hiring Best Practices for Small Businesses

There is no question that now is an exciting time to be a small business, especially when it comes to hiring. It is certainly a “buyer’s” market for qualified candidates. Every job posting has the potential to be inundated with applications.

With the right mix of strategy, technology, and commitment, organizations can make the right hire quickly and securely.

Here are some tips for best practices in small business contracting:

Define the function.

What is the job, exactly? Often the employees of small businesses where various hats; they do much more than their titles suggest. Before you begin your search for a new hire, make sure there is a clearly defined job role for both the business owner and potential candidates. Don’t rely too much on the term “other assigned duties” after the fact.

Consider alternatives.

Broaden the talent pool by considering other ways to fill the position. Freelancers, interns, and contract workers help small business owners create a broader net to fill jobs. A temporary agency may also be appropriate in the short term, at least for immediate staffing needs. Independent contractors could be money savers, paid only when services are needed.

Always be recruiting.

Recruitment is a process, not a result. Always be on the lookout for the next superstar to join the company. Small organizations have huge advantages; there is flexibility in recruiting not found in larger companies, with various policies and procedures.

Look up successful companies and then do what they do.

Aristotle was right thousands of years ago; he said “to be good, find a good person and do what they do”. Small businesses always do more with less, so by examining the successful practices of key industry players, the small business owner can develop effective hiring strategies on a smaller scale. What kind of experience are they looking for and what do they offer?

Let technology help.

At no other time in history has technology been better suited to help small businesses compete with big ones. With recruiting software, applicant tracking, and hiring management systems, organizations of any size can strive to source the best talent. Software as a service and online HR software can automate many recruiting tasks, leaving owners and managers more time to generate traffic and earn money.

Never settle.

Just because a company is small doesn’t mean it has to settle for a poor candidate. Use the size of the company to your advantage, offering things that the big ones cannot. For example, can a company offer flexible hours or the opportunity to work from home? That could be the benefit that tips the scales in your favor. Small businesses also provide an opportunity to inspire employees, with hands-on experience and answering to a smaller chain of command. Creative talent thrives on increased responsibility.

Be open, fair and honest.

Never overpromise and underdeliver – it’s a recipe for HR disaster. Every new employee must come to work with their eyes open; it is the only way to start the association on the right foot. Paying people too little will only make them leave at the first opportunity. There may be times when it is best to specify that a job is short-term or temporary. Be honest with your employees and with yourself.

Be proactive.

If there’s a particular person you’re looking to recruit, go out and get them! Use networks, professional associations and even social networks to search for new talent. Keep your options open, so when the right person becomes available, you can choose them right away.

Know the person you hire.

The smaller the company, the more influence an individual worker will have. Whatever the size of the company, the perfect hire will complement, not clash with, the corporate culture. Employment screening, background and education checks are necessary, but gut checks still have their place. The new employee must be a perfect fit, and that means having a character that works well within the business.

Be patient.

A small business owner may be under pressure to fill a position, but hiring the first applicant with a pulse can do more harm than good. No one can afford the wrong hire, and waiting for the right circumstances could save time and money in the long run. This is also where technology can be of great help. New human resource management software, cloud-based recruiting tools, and applicant tracking systems can cut time considerably, but patience is still effective in a hiring strategy.

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