Running a small business can be hard and stressful, so when you’re hiring new staff, you want to make sure you make the right decisions. A change in staff can make or break a company so here are some common mistakes that you as a human resources manager do not want to make when hiring a new employee for your small business.
Hiring for skills and experience over personality fit
When you run a small business, chances are that your team is very small. This means that if one person is not meshing well, the entire team can go out of sync. Hiring for a culture fit at your business is a lot more important than hiring someone with specific skills or experience. If someone doesn’t fit in properly from the beginning, or if they are rude, mean or offensive to their new coworkers, they won’t eventually start fitting in. According to the Society for Human Resource Management (SHRM), the turnover cost to an organization, due to a bad culture fit can cost between 50-60% of the person’s annual salary, While the person may look phenomenal on paper, personality is everything on a small team.
Not spending enough time and effort creating a job ad
Having a defined set of responsibilities at the start of the hiring process sets the stage for moving forward with any candidates. Posting a vague job ad will not assist you in the hiring process at all, as when people can’t figure out exactly what the job is, you will miss out on potentially exceptional employees and source unqualified candidates. Having fleshed out a satisfactory job ad with requirements and descriptions of all the duties assists you later on, as it will be a lot easier for the new hire to understand exactly what their job requirements are.
Not using outplacement agencies
The environment of a small business is often an unstable one. An outplacement service provides support and allow employees to know that they would be taken care of in the case of any redundancies. Failing to provide this type of support for your potential new employees can be counterproductive, because if they feel they are not cared for by the company, they won’t be happy contributing their best work.
Paying new employees less than what they’re worth
Understandably, when running a small business you are always looking at ways to save money. One way a lot of small businesses try to save money is by offering potential new staff a salary that they are overqualified for. Employees paid less than industry standard will often feel that their efforts are going unappreciated; unfortunately meaning higher turnover for your company. There are resources like Payscale that let you research the pay for the job you intend to fill before you post your ad.