When making the hiring decisions for your new business, it can be overwhelming. Hiring employees gives a new face to the business you have worked so hard to create. And it’s important to hire employees you trust with your vision and company because a bad hire can cost a company on average three to five times the employee’s salary. This cost includes recruitment, relocation and training fees for replacement employees, a loss of customers, and a weakened brand name.
As a new business, it’s important to make the right decisions throughout the hiring process to keep a forward momentum. Here are the top five effective hiring practices to consider if you are starting a new business.
Provide a Clear Job Description
No matter the size of your business or the positions available, it’s important to write a thorough job description. Doing so not only helps get higher-quality applicants, but also clarifies for both you and the applicant exactly what you want your new employee to do. A great job description includes the roles and responsibilities of the position, the characteristics of an employee that you are looking for, and the skills and knowledge required for the job. Determine exactly what you need and only accept candidates that fit this description.
Determine Your Company Culture
Company culture is an important aspect of your new business. The work environment you build is dependent primarily on the employees you hire. Humans are social animals, and by working as a group together, your company will inevitably create its own culture.
Establishing a positive work culture is a great psychological way to retain your top employees. By having happy employees, you will produce a more productive work environment. Create an empathetic environment that allows employees to express themselves and their concerns. Employees need to find meaning in their workplace as well as work hard to get ahead in their work. By hiring the right employees for your culture, you ensure improved productivity.
Find Qualified Applicants
Finding qualified candidates can be difficult. Chances are, as a new business owner, you will get dozens of unqualified applicants while trying to hire. If you don’t have the budget to hire a recruiter, it can be challenging to sift through potential candidates. Networking can help solve the problems that come with not having a recruiter. If one of your contacts refers a candidate to you, chances are they have had a good experience with the employee, and they are probably worth pursuing. Trust your gut reaction about an applicant; learning to trust your instincts will help you grow as a business owner.
Hiring Your First Employees
It is important to be mindful of diversity and inclusion when making your hiring decisions. As a company, you want to make sure that the first employees you hire are devoted to your bottom line. They should ultimately help the company save time and money, as well as grow as a business. However, the best employees can be the hardest to find and attract in our job market.
The fact of the matter is that you get what you pay for. If you are a new company with little disposable income, it can be normal to want to hire a low-cost employee that can help free up some time. However, in the long run, you will have more success with hiring a candidate that shows promise. After thoroughly examining applications and resumes, choose your top candidates. If the interviewing process is promising, check their references to determine their personality and work ethic.
Avoid a Negative Domino Effect
The domino effect in hiring employees can either be positive or negative, but it is all dependent on the first hire you make as a new business. The positive outcome of the domino effect is that you hire a great employee who works efficiently and saves the company time and money. This type of employee can help attract other great candidates to your company through their own personal networks.
The negative side of the domino effect is that you hire a bad employee. There can be plenty of reasons that a person is not a good fit for your company. They may bring morale of the company down, negatively affecting other employees and hindering their performance. Chances are a bad employee will not deliver on what is expected of them. If they are in a management position, they could make bad hiring choices, bringing even more poor-performing employees into the company.
Implement a Probationary Period
Probationary periods are convenient for new hires because they allow new employees to adjust to the employment rules and adapt to their new job. Probationary periods can be anywhere from 30-90 days, allowing you as a business owner to feel out the characteristics and work ethics of a new employee. Some companies withhold benefits until the end of a probationary period, which could be financially beneficial to a new business. If you are not impressed with your new employee by the end of the probationary period, you are allowed to let them go.
Hiring is one of the most important parts of starting a new business. Ensuring that you are making the right decisions from the start is imperative to seeing the vision of your organization come to fruition amongst the other great business owners in the world.
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