The outlook for small and midsize business is mostly positive but those organizations that need to hire and fill vacancies are finding challenges in finding qualified and enthusiastic candidates for entry level positions. Cost of living increases and a shrinking labor pool are shrinking the pool of applicants willing to get in ‘on the ground floor’. Making the wrong decisions when hiring can be costly, especially for SMBs. The hiring process itself is costly and time consuming and investment in the individuals training only adds to those costs and time commitments. It is essential for SMB owners and managers to make the right hiring decision the first time and that starts with strategizing the entire hiring process. Defining expectations and setting standards for applicants is always the first step in effective hiring. The removal of duress and desperation are key factors of success for making the correct hiring decision and developing a detailed plan can increase the chances of hiring a successful and productive candidate.
Setting the Standard
SMBs quite often neglect the business’s own needs when trying to fill vacancies. Establishing the needs of the business is the first step in successful hiring and setting defined standards and expectations for the new hire is crucial to putting the right person in the role. Needed skills and standards can be prioritized by must-have and nice-to-have which can be optimized to the businesses’ own model. SMBs should also quantify expectations for both the individual and the business. Good starter questions when planning are:
- What do we want the new hire to do?
- What do we need the new hire to do?
- What can we do for the new hire?
Formulating a detailed standards list will provide a valuable resource for job postings content, job descriptions, the screening process, training and future evaluation of the new hire. Setting standards for the business and for the candidate and following through will increase the chances of a correct hiring decision.
Strategies for Screening Candidates
The screening process begins at the resume pile. Sifting through stacks of paper or online resumes is time consuming and depending on the volume of applicants, can be daunting. Defining keywords that apply to the business is an efficient way to scan through applications and resumes. After setting standards and defining the needs of the business, certain keywords, such as customer service, receiving, restaurant, could be used to initially scan and search resumes and applications. Quick physical scans of paper resumes or searches of online resumes for keywords would eliminate individuals not meeting the minimum criteria. 2nd round applicant picks require a more detailed look to identify any potential red flags such resume ‘holes’, inconsistent job experiences and skills qualification.
Based on the applicants selected, owners and managers who perform interviews should pre-plan interview questions based on the individual’s resume. Using the candidates own experiences and skill sets, questions and scenarios should be crafted in a way to highlight the individual’s ability, aptitude and attitude. Questions and interactions from the employer side are more effective when brief, with the intention of getting the potential new hire to showcase their communication abilities and personality traits. Depending on who the individual reports to, a 2nd interview may not be necessary if reference checks are available and practical. If necessary, a 2nd interaction should be scheduled within days while information is still fresh.
The Transition
Turnover and attrition is costly, especially for SMBs and most instances of ‘quitting’ happen after or shortly after the new hire’s first day. ‘Fast quitting’ can be due to a number of factors such as lack of support, absence of any training and uncertainty of actual job duties and expectations. To prevent expensive turnover, a transition or onboarding plan is essential to get the new hire acclimated to their new work surroundings. Onboarding plans and messaging can cover:
- Employee / employer expectations
- A defined and dated training agenda
- Resources available and where to find them
- The new hire’s schedule for the next two weeks
The transition can be a scary experience for new hires, especially in the entry level category and this phase can make or break their success as an asset to the business.
The Bottom Line
Even with the rosy and optimistic outlook for SMBs, hiring for entry level positions still remains a challenge. For SMBs, the average cost of hiring a new person is approximately $4500 and losing that to early and fast turnover is a cost businesses cannot afford to repeat. Making the right decision the first time is critical to control costs, maintain productivity and eliminate gaps in service or operations. Strategizing and planning the hiring process can reduce the changes of a ‘bad hire’ which can impact the business negatively on many fronts.