Hiring Tips for Small Businesses

Upon hiring, small businesses have little margin for mistakes. There are only so many turnovers that a small company can endure prior to either having to scrap the project or having trouble with their overall business.

1. Determine Your Budget

- Though the above is difficult if you are unsure of the job market, which most small businesses are, upon determining a hiring budget for this individual, it is best that you determine a range rather than a hard figure.

- Many companies blindly formulate hiring budgets and while some don't procure the employees they want, others end up overpaying for someone who doesn't turn out to be a fit for the organization.

- Having a pre-determined budget range that fits in with the rest of your business operations allows you to be realistic about what level of qualifications you can afford, and what skills and experiences are non-negotiable for the role to be filled.

Especially as a small business, you will almost always have to compromise, and a budget lets you know where compromise is necessary, and where you might be able to get more than you thought you would. Think about this balance when considering point two:

2. Determine the Time Investment You Have to Put in With This Employee

- Small businesses, for the most part, are on a strict budget. When determining whether to actively recruit a more junior or senior employee, it is best that you figure out how much time you have to train and mentor the individual.

While hiring junior employees may save money for the small business, it will turn out to be a fruitless investment if you don't properly train the individual.

3. Determine the Future of this Individual

- The best businesses properly plan for the future. This is no exception upon hiring for your company.

Prior to determining what level and personality you want in the office, figure out where you want the individual to be in 2, 3 or 5 years. It is always recommended that as a small company you hire employees with a track record of stability in employment, however, where do you want that stability to go?

Another big advantage of having a predetermined vision for the new prospective employee is that this will assist you during the interview process when "pitching" your job - especially when the applicant is actively being recruited by larger, more stable (or seemingly more stable) firms.

4. Virtual or Office Employee?

- One major factor that small businesses have to determine upon recruiting is whether they wish to hire a virtual employee or have their new hire work directly out of their office.

Running an executive search firm for the past few years, I have seen some key advantages and disadvantages for positioning your employees either at the company's headquarters or in a remote location.

For instance, if you have employees in a remote location, it does make your company appear larger and more stable to prospective clients, but remote employees are also more difficult to manage, thus having a higher turnover rate.

These are some of the most basic factors you need to determine before even beginning interviews as a small business hirer. Outside of key foundational factors such as these, the best thing a small business owner or manager can do is to be open-minded and flexible, within reason. The best new employee for you might turn out to be someone you never expected.