One of the biggest challenges of a small business is to hire the right people. According to the Wells Fargo (NYSE:WFC) and Gallup Small Business Index, the problems lie in getting the right people to apply for the job, identifying the candidates that fit the company, taking the time to explain the job profile, and ensuring their commitment. The five tips we have for you will help solve these problems and build the right workforce for your firm.
Plan tomorrow’s hires today
A small business is vulnerable when it comes to hiring fast and hiring right. Forecast your need for employees based on market trends, business growth and potential opportunities. A digital marketing firm, for example, will know that it needs account managers and more social media executives when pitching to a big client. Similarly, you can anticipate your firm’s resource requirements and plan your hiring. Either create a skilled HR department that can achieve targets on time or outsource recruitment to be ahead of your staffing needs.
Don’t hire if you don’t have money for the next year’s salary
As a thumb rule, your company should have enough money to cover salaries for at least one year. Without this buffer, it will be difficult for you to arrange finances to pay salaries at the last minute. Even if you can predict consistent growth for your business, not having the money in the bank for salaries is risky.
When you hire aggressively and then stumble when it comes to timely paychecks, you risk your market reputation and your ability to attract qualified candidates in the future. On the other hand, not paying your staff on time demotivates them and decreases productivity. If you find yourself in a situation where you have used up the money set aside for staff salaries for other business expenses, you can borrow an unsecured business loan, which is usually processed fast, to have enough funds to ensure smooth salary payments.
Understand that in a small team every hire matters
In a small company, each person must multi-task and juggle responsibilities to ensure that the company grows. Therefore, every hire must be able to pull their weight. Hiring even one resource that isn’t up to the mark will not only be a waste of your time and resources, it will also impact your productivity. Secondly, in a small organisation, one dissatisfied hire can discourage the others. Hence, make sure you organise interviews and tests in a way that lets you select the best candidate for the position. Also, make sure to conduct monthly reviews with individual hires and your entire team to motivate and evaluate their job satisfaction.
Grow and use your professional network
Growing your professional network not only helps you expand your business by introducing yourself to potential clients, but also helps you hire the best resources. Interact with like-minded professionals and leverage your industry network to seek out highly specialised resources who can add value to your business. Be active on networking platforms like LinkedIn and BizCircle. Another way to do this is to host, sponsor or participate in PR events, seminars, and trade shows to attract the right talent.
Build employee accountability and ownership
Since setting goals and targets gives your employees a sense of direction, work out an effective performance rating system for your business. While KRAs (key result areas) and KPAs (key performance areas) are commonly used measures, one of the most effective means of evaluation is OKR or Objectives and Key Results.
Intel pioneered this concept, but it came into the limelight when Google started using it worldwide. Using OKRs can help you and your employees create a foundation, build objectives and then set a quantifiable result, which can then be graded. As a result, they’re more accountable for their actions. Also, ensure that you listen to employee suggestions and implement them when you can. This will create a sense of belonging and ownership. When employees feel like their actions directly help the company grow and that their opinion counts, they’ll be more willing to take on a leadership role.
Lastly, reward good work. This motivates employees. These are a few ways to ensure that your small business attracts employees who would normally apply for bigger corporate brands. Having the right compensation and other monetary and employment benefits goes a long way in incentivising productivity and building loyalty.
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