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8 Hiring Mistakes Your Business Is Making
May 22, 2019
Hiring-Process

8 Hiring Mistakes Your Business Is Making

Your employees are a crucial part of your business, so hiring new team members is probably a big step for you as a small business owner.

It’s important that you make smart decisions when hiring because hiring mistakes can be very detrimental to your business. In fact, HR Dive says turnover can cost your company $15,000 per employee, and managers can be even more costly to replace.

In this post, we’ll list eight hiring mistakes you might be making, so you can learn how to effectively recruit qualified candidates.

Are You Making These Hiring Mistakes?

1. There’s a Lack of a Standard Hiring Process

Every small business needs a standard hiring process, even if your team is small. This ensures everyone is using the same measuring stick when determining which candidates are a good fit for your business and leaves you less likely to make hiring mistakes.

In addition, it leads to more consistency in your hiring process and credibility as an organization. If you’re looking for more information, the Balance has a 10-step guide.

2. You Aren’t Writing Clear Job Description

It’s important to produce clear job descriptions so potential employees know exactly what open roles will consist of. Without clear communication, they may not be able to meet your standards or be the right fit for the job.

Writing clear job descriptions can help you narrow down the applicant pool so you don’t waste time on unqualified candidates, or those who may not want the job after finding out what it really entails.

If you need help writing a great job description, check out these job description examples for thousands of titles.

3. You’re Rushing to Find Candidates

Often, bad hiring decisions happen when the hiring manager rushes to find a new employee instead of taking time to interview multiple candidates. Although having an employee quit can leave you in a lurch, it’s more expensive to hire someone and find out they’re not a good fit six months down the road.

Before hiring a new employee, do your research and make sure they’re qualified, even if it takes a little longer to fill the position.

4. You Don’t Consider Company Culture

Company culture is especially important for small businesses because one disruptive employee can throw off the entire team.  When interviewing candidates, make sure you consider the personalities on the team and who they’ll be working with.  In addition, you should make sure that they believe in your company’s mission. If they don’t, they probably won’t succeed in their role.

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5. Your Team Isn’t Using Online Recruiting Tools

Online candidate solutions like CareerBuilder for Employers and LinkedIn Talent Solutions can help you find qualified candidates fast. These tools are designed to help you attract and secure top talent and they can help businesses of all sizes. While some online talent solutions cost money to post jobs, some sites like Flexjobs are free for employers to post because they pass on that cost to their job seekers.

6. You Aren’t Asking the Right Interview Questions

Not asking the right questions can leave you confused and missing important information about a candidate after the interview is complete.

Before interviewing candidates, you should have a list of questions to ask. These should include questions about their professional achievements, leadership style, how they deal with challenges, and why they’re leaving their current employer.

In addition, you should review the candidate’s resume and ask specific questions related to their job experience.

7. Interviewers Don’t Trust Their Guts

You’ve probably heard before that you should trust your instincts when hiring, but the Society of Human Resources Management (SHRM) says there’s little evidence that this an effective technique.

The SHRM say that managers can choose someone they like rather than the most qualified candidates, and that’s not always best for the company. Instead, be objective to make the best decision.

8. You Don’t Contact Previous Employers

Checking references is vital to the hiring process. No matter how great a candidate seems on paper, there’s always a chance they’re lying about qualifications or they’re difficult to work with.

Reference checks are used to answer any questions you have about the candidate and independently verify information. This should always be done before sending an offer letter.

Conclusion: Keep Improving Your Hiring Process

With every individual you hire, you should continually improve your hiring process. After the new employee completes their onboarding process, send a survey and ask about their hiring experience. You can also talk to your hiring manager to see if they have any suggestions on how you can streamline the process. If you’re always looking to improve your process, you’ll continually get better hires.

Do you have any hiring tips for small business owners? Post your tips in the comments section below.

Fora Financial

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.

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Fora Financial is a working capital provider to small business owners nationwide. In addition, the Fora Financial team provides educational information to the small business community through their blog, which covers topics such as business financing, marketing, technology, and much more. If you’d like to see a topic covered on the Fora Financial blog, or want to submit a guest post, please email us at [email protected].