The decision to hire a new employee is a huge one; especially for a small business owner. Making a wrong hire decision can be very costly; a nightmare to undo; and damaging to employee morale. A study released by the Boston Consulting Group showed that organizations highly capable in recruitment function have 3.5X higher profit growth and 2.0X higher profit margin compared to their counterparts with lower recruitment capability. This research showed of all HR activities…recruitment has the largest impact on HR contributing to the bottom line of the business.
Based on my experience recruiting candidates for small business owners, here are the common hiring pitfalls that small business owners often make. Professional human resources support can help ensure that your recruitment dollars are wisely invested and maximize the probability of securing the “right person for the right role”.
Common Hiring Pitfalls
1) Looking for the perfect candidate rather than perfect “fit”
2) Rushing through the hiring process
3) Thinking anyone can do human resources; and that you will delegate to administrative staff
4) Trying to undercut market rate for base compensation
5) Hiring based on past performance only
6) Hiring from competition (e.g. sometimes there is a reason they no longer work for the competition)
7) Not selling the job
8) Not taking time to respond to unsuccessful candidates