Small Business & Startups

How to Hire the Right Employees for Your Business

By May 3, 2016 No Comments

Hiring the Right Employees

Starting a company is like building a car; you need all the right pieces or it just won’t run smoothly. The same concept can be applied when hiring new employees. Hiring the right people is critical to successfully expanding a business. According to the US Department of Labor and Statistics, the average cost of a bad hiring decision can equal 30% of the individual’s first-year potential earnings. The right person can bring immeasurable benefits to your company, while the wrong person can cause you a great deal of stress. It’s important to find people who not only have the necessary skills and experience for the role but who will also add vibrancy to your company’s culture.

 

Make a Plan

Smart hiring starts with a well-developed strategy. According to the Harvard Business Review, as much as 80% of employee turnover is due to bad hiring decisions, so it’s important to think about what your business needs before you start hiring. What’s preventing you and your staff for getting work done? Also, consider where you’ll be in the coming months and years. Can the new hire potentially take on other responsibilities when the time comes and grow into a different role? Finally, think about your budget. Does a part-time employee make more sense? Once you have a strategy in place, you’ll have a better idea of the type of skills and work you are seeking.

Define Your Company Culture

The right fit for your company will have more than just the necessary skills to do the job. They’ll also embrace and add to your company culture. Just as you should establish your long-term hiring strategy upfront, you should clearly define your company culture before hiring. It will allow you to find a person who fits in with you and the other employees and also gives potential applicants a glimpse of what it’s like to work for your company.

Cast a Wide Net

Once you have your hiring strategy and culture set, you can start circulating your job description and interviewing candidates. Tapping into your LinkedIn connections, utilizing social media and engaging your professional network and local hiring agencies are excellent ways to get the word out.

Narrow Down Your Prospects

When the applications start flooding in and interviews commence, continually narrow your prospects into shorter and shorter lists. This will ensure that you are doing your due diligence and each candidate is getting a fair look. Be sure to weigh factors like communication skills, flexibility and problem-solving abilities when making your final decision. It may seem like there are lots of candidates to consider but it’s likely you instinctively known who is the best fit.

 

Read the Xero Small Business Guide “How to Hire the Right Employees” to get more tips on successfully expanding your staff.

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