Technology is ever-changing and evolving and it can be extremely difficult to keep your small business practices current with all the changes. Even though it is easy to wait until later to try out these new techniques or implement new strategies, take a proactive approach and at least be on par with the technological trends. Watch the following video from the 2008 ERE Expo to get some useful tips from Michael Marlatt.

The Future of Recruiting Is In The Clouds

In today’s “uncertain times” it is often the knee jerk reaction to say, let’s cut expenses, lose the vendors, bring everything in house and do more with less.  However this can be a very costly move.  While cutting vendors may seem like an easy way to cut costs, outsourcing can actually be an effective way to save money.  Accounting, IT, even sales can all be outsourced to trusted vendors that can cut costs, improve efficiencies, and give you a level of expertise that you couldn’t afford to hire full time. 

Obviously, I recommend turning to outsource recruiting specialist for your hiring needs.  The costs of taking manpower off of other projects to focus reviewing resumes, interviewing, and checking references can add up, but is really minuscule compared to the cost of making a poor hire because the hiring manager was rushed or did not know what they were looking for.  Whether you chose to use an outsourced hiring service, traditional executive recruiting company, or other type of staffing firm, entrepreneurs should be exploring all of their options in order to get the best value for their needs.

As a small business owner, have you ever found yourself scrambling to fill a position?  If you answered yes, then you are definitely not alone.  At Safari Solutions, many of our clients have dealt with the same situations.  Perhaps you recently had an employee quit.  Or maybe business is picking up, and it is way past time to hire that extra accountant.  At this point, it may seem more important to get an employee in the door ASAP.  However, in your rush to fill the position you may be making a huge hiring mistake.

Making a rash hiring decision can be very dangerous.  It is essential that you put every candidate through a complete hiring process.  While the process as a whole can be expedited, don’t skip out on important components such as interviews, background checks, and references.  It’s also important to “stick to your guns” if you have uncover any red flags about a candidate.  For instance, you may find yourself wanting to overlook a candidate’s recent job hopping because they can start next week.  However, will you really feel comfortable that the candidate will stick with your company in the long run?  Strictly adhering to a set hiring process is the best way to ensure that you are making the best possible new hire.

I hate to add to the frenzy of economic panic that is going on, however, I saw this article today and thought it is relevant to business owners that are not facing layoffs as well.  The points that Elizabeth Stahl makes about downsizing can be carried out into many other areas of business, especially hiring.  While friends and family can be great sources of potential employees, it is important that entrepreneurs do not make hiring decisions emotionally or based on your relationships.  Small business hiring practices can often be unstructured, however it is best to put people that you know personally through the same kind of hiring process you would for other candidates.  Jumping to the assumption that someone will be a good fit for your business because you like them can lead to business issues that can cost you significant money and personal issues that could cost you the strong relationship you enjoyed before.  Best to take the time to thoroughly explore the possibility of altering the relationship before you take the leap.  And if you feel like you need an impartial third party recruiting specialist to help you make the decision, give me a call.

I have been advised by my marketing consultant and business coach that I should write a book.  My business expertise is recruiting for small businesses.  So, of course, the book will share what I have learned and experienced as a recruiting consultant for small businesses. Yet, at the same, I want to write something that small business owners would find interesting, thought provoking, practical for immediate applications, and at the same time "forward thinking."

So, my question today is, "what would small business owners like to learn as it pertains about recruiting for their own companies?"  Yes, there is the the routine stuff about sourcing, screening and evaluating candidates. Yes, there is the verification of candidates using background checks, references, and skill testing.  Behavioral assessements generally strike a chord, too. 

But, what about the concept that recruiting does not end when a candidate accepts an offer? Recruiting is just the beginning stage of an employee/employer relationship.  Keeping the relationship healthy and strong once they are hired is often difficult for small businesses owners.  Perhaps this is where the hiring process melts down for many companies.  

Would love to hear your thoughts about what you feel is the most difficult part of hiring and managing employees!  

I was chatting with a friend of mine who works at an Indianapolis staffing firm recently and the conversation turned to the unpredictability of candidates, not an uncommon topic when I talk with others recruiting specialists.  “I can do everything right,” he said.  “And the deal still may not go through.”

While I’m sure this is true to an extent in any industry, in the recruitment industry we struggle with the challenge that our “product” is a human being.  Adding in “the human element” leads to so many opportunities for a project to go wrong.  Was the person being upfront when they said that the position was what they were looking for?  Did they have a lingering concern that they never mentioned?  (Even though I asked!)  Or maybe something came up unexpectedly at the last minute, their dog died, another job offer, they were in a car accident…  The list of excuses why a person may just not show up on the first day of work could go on forever. 

So what’s a small business owner to do when they set out to hire?  The key, as it is in so many business decision, is due diligence.  The only way to improve results is to uncover as much information about the candidate as you can before you bring them on board.  There will always be surprises as you get to know each other, but asking the right questions and approaching the situation with your eyes open is the best way to minimize the unpleasant ones!

Many small growing businesses often fail to budget for hiring costs associated with turnover or anticipated expansion hires.  Consequently, many small businesses lack the financial resources to hire quality talent. 

The average cost to hire is about $7K, yet I've found many business owners reluctant to spend any money at all for recruiting.  They first try to hire friends, family, and then friends of friends.  The do-it-yourself hiring approach works like doing your own plumbing.  Sometimes you create a bigger mess!   

When it comes to hiring, business owners tend to be reactive rather than proactive.  To improve the quality of hires, businesses should create an annual staffing plan that includes a budget for hiring replacement or expansion hires.  Planning helps businesses from being caught off guard financially.  And, with allocated dollars set aside for recruiting, companies will have a better chance of hiring top talent.  

Retention of top employees is always an important issue for all businesses and can be especially important to small business owners.  Once you have brought an employee on board, taught them everything there is to know about your business, and begun to rely on them in many different ways the thought of losing them is painful. 

Keeping employees happy is the key to keeping employees at your company.  However, “Golden Handcuffs” is a slightly different strategy.  Instead of just encouraging someone t stay, it really discourages them from leaving.  Here is a link to a past newsletter that discusses the topic.

This is a dangerous strategy because it can encourage people to stay even if you may not really want them on board any longer.  It is very likely that an employee that is no longer happy in a job, but is financially committed to it will have performance issues.

Is it better to have these individuals leave naturally when they feel there is something better out there?  Or is it worth the investment to keep them there?  Can a ‘C’ player with 10 years at your company get more done than an ‘A’ player who is a newbie?

The many regulations that go along with government contracts can be overwhelming.  What advice can you give to small business going after government contracts? 

A little thought of benefit to outsourcing your hiring is that candidates will tell third parties things they won’t tell you.  I tell candidates that they should think of me as a representative for the company, but for some reason that isn’t what they hear.  Outsourced hiring services not only save companies time and money, but can give you information about candidates that they work hard to hide. 

Often this results in stories about previous employers or coworkers that start off with, “Don’t tell anyone this, but…”  Sometimes the information we get from candidates is much more positive than what they shared with you.  “From the minute I walked in it seemed like the perfect fit!  I can see myself going to work there everyday and loving it!”

Either way, this extra information can be very valuable when you work to make your final hiring decision!

Stretch

As with owning your own company, when you work in a small business you often have to become an expert in marketing, accounting, mind reading, playful banter, and counseling.  Again, this is one of the best parts of working in a small business.  But remember that your employees are not super heroes.  While the best ones will seem to do the impossible, no one can do it all.

Everyone likes to feel important…

Status

For small business employees there can be a constant struggle to balance our inflated egos.  We tell ourselves, “If I am not there the world will crumble!  What will they do!”  And other times we say, “My job doesn’t really matter.  If I wasn’t doing this would anyone even notice?”

There is also the “Where do you work syndrome?”  I make important decisions that change lives and businesses everyday, but lots of people don’t take my career nearly as seriously as they would if I worked for “Fill in the Blank Big Corp.”  I personally know that my job is much more influential than it would be if I worked at a place like that, but I have an ego, like we all do!

Another potential pitfal...

Communication 

New employees don’t have anywhere to go to find out “the way things work here” and my guess is that very few small businesses have an FAQ up on their intranet about things like dress code, holidays, birthdays, and other seemingly unimportant things.  Be mindful of the fact that if you haven’t told them, no one else probably has either. 

Over the next few days I am going to point out some of the unique issues that employees of a small businesses often face.  As with most things, just knowing what these issues are is beneficial.  Acknowledging them and being open to doing what you can to resolve them will go a long way in keeping employees happy.  Also, addressing these issues in an interview will help paint a realistic picture of the position and help candidates make an informed decision before the accept.

 Lack of a peer group

There just isn’t anyone to cover your shift.  Typically with small businesses there is no one else who is doing exactly what you are doing which makes it difficult to really develop a true peer group. Yes, small businesses tend to be very close knit, but that doesn’t happen over night and it is like a “family” not like friends.  You just don’t build a professional network in the same way that you would in a larger company.  So encourage your employees to get out and network.  Even if business development isn’t part of their job description.  It will still benefit your company and it will definitely benefit them.

Many small businesses think they have a disadvantage when it comes to hiring, but there are a few key “selling points” that small businesses can maximize to ensure that you get the best candidates possible.  Design your positions to take advantage of these areas and you will appeal to top performers considering your company and keep them there once they have joined your team!

Level of responsibility – Make it a big job – Make your employees important parts of the company.  The more important you make them feel, the more likely that they will be important parts of the company!

Variety – Get employees involved in marketing, accounting, sales, or anything they may want to know about!

Growth - Don’t hold on too tight.  Give your employees the freedom to get out in the community and network on their own.  It is for the best that you are not the only face of your company.

Lack of Bureaucracy – Top performers like to get things done.  The more you do to help them get things done, the happier they will be.

 Who are they?  What to Look for In Employees of a Small Business

The last area I am going to write about in this series is being task oriented, but it certainly isn't the last important thing to look for when hiring for small businesses.  What have you found to be important traits in your business?

Task oriented –

“The entrepreneur is not really interested in doing the work; he is interested in creating the way the company operates. In that regard, the entrepreneur is an inventor. He or she loves to invent, but does not love to manufacture or sell or distribute what he or she invents.”
Michael Gerber
 
But the employee has to do the work.  They have to not only be able to see the big picture, they also have to be able to see the little picture, and the medium picture.  This, and the other differences between an entrepreneur and an employee of a small business, can be points of frustration for business owners.  Hiring people who have these characteristics is going to mean that you are not always going to see eye to eye with the people you hire, but it also means that your business is going to have a better chance of succeeding.  Seems like an easy decision doesn’t it?

Who are they?  What to Look for In Employees of a Small Business

Another trait I have noticed about successful employees of a small business...

Commitment - I’ve found that people that really do well in small businesses have this unrealistic commitment.  We just feel like owners.  Even if there is no real reason for us to feel that way, we feel very committed to the company. 

My mother ran a day care out our home for almost the entire time I was growing up.  She is one of the most successful entrepreneurs I know because she enjoyed what she did and she was good at it.  After my sister and I grew up she decided that she had enough of doing it on her own and decided to go work for someone else at a day care center.  She ends up working for this woman who was not a savvy business woman to say the least.  She couldn’t pay her bills, she couldn’t pay her employees, she was unorganized, and nobody really liked her.  So for months my mom would laugh about how she had to go straight to the bank to deposit her pay check because if she waited until everyone else deposited their checks, it probably wouldn’t clear.  I think a lot of people would have drawn the line there.  My mom could have gone to any daycare and done what she was doing.  She could probably have left and all of the kids she was watching would have just moved to the new center.  But she was committed to it, so she stayed. 

Who are they?  What to Look for In Employees of a Small Business

Another trait that is helpful when working with a small business, especially an entrepreneurial one, is flexibility. 

Flexibility - Because you, entrepreneurs, change your minds a lot.  And it might not seem like a sudden change to you, because you had time to work it through in your mind and you’ve probably been mulling it over for a while and just forgot to mention it to anyone else. 

And even the best laid plans will change.  It is one of the things that gives small businesses such a competitive advantage, we can adapt very quickly to things that are changing.  And flexible people tend to be able to “take it.”  Because in a small business sometimes things are going to suck and if you aren’t able to suck it up for a while and adapt to the situation you will be miserable, and you will leave.

Who are they?  What to Look for In Employees of a Small Business

From being an employee in a small business and hiring people to work in small businesses I have noticed that we have a few things in common that top performers in large companies might not necessary have, or might not be as important.  Over the next couple of days I am going to share a few of these traits.

Entrepreneurial attitude, sort of -   We enjoy creating something from nothing, like entrepreneurs do.  Venturing out into unknown territory is exciting for us, just like it is for small business owners.  But we are not exactly the same. 

 “A real entrepreneur is somebody who has no safety net underneath them.”

But employees are more risk adverse.  Maybe it is only for that period of our lives because there is something going on or maybe it is a part of their personality, but if you find someone who has an entrepreneurial attitude, really instead of an entrepreneurial attitude sort of, they probably won’t take the time to stay and really contribute to your business.  It is all just too tempting to them.  Why don’t I just do this on my own?  Why am I building their business when I could be building my own?  Find out the answers to those questions before bringing someone on board.

Small business owners are busy and it is often hard to set aside time to prepare for interview.  However, preparation ensures your interview time is productive. Creating a standardized list of questions for each position that addresses the essential success factors for that role will help you use your time wisely.

The following interview categories provide a solid basis of comparison among candidates so you can make the right hiring decision.

Do they know how to do the job? Ask about specific experience and technical skills such as computer programs, industry best practices, management experience, etc.

Can they do the job? Ask about specific requirements for the position such as work schedules, personal transportation, or travel.

How will they do the job? Ask behavioral based questions about past work related experiences that are similar to situations they may encounter in the position.

For more information on structuring interviews, click here to download our free Safari Interview Guide.