Making the right hire for your business is important. A bad hire can cost thousands of dollars in hidden expenses: the cost of diverting the time of senior management; the process of identifying replacement candidates; potential unfair dismissal claims; and the impact on staff morale.
Hiring the right person requires patience and careful analysis and the ability to screen candidates.
The first thing to do is to identify what you want in an employee. A well thought-out and well-written job description defines core competencies needed to fill the position. Good job descriptions identify the range of tasks involved and requirements in terms of education, work experience and skills.
The job description has to be precise but not too rigid. Roles change with circumstances and there will always be unforeseen tasks and responsibilities. Their attitude and experience is also critical.
Similarly, finding someone you can work with is vital. In a small business, you need to have someone who shares similar values and priorities.
Management experts say it is better to find someone who complements your strengths. If your strength is sales, find someone who can handle the administrative side. Finally, the best hires buy into the vision of the company and the proprietor’s plans for the future.
One critical question every business owner faces is whether they want to buy expertise or build it themselves via training. The “buy or build decision” is critical for hiring. In a world where the business environment is changing quicker than the time it takes to train and build required talent, firms are more likely to buy the required talent.
Every employer needs to do due diligence on new hires. That means checking through their references from former employers and supervisors. Identifying patterns like punctuality is important. Past behaviour is considered the best indicator for future performance.
In the interview, ask about qualifications, experience, expec-tations and how they will get along with co-workers. Assess how they worked when they held similar positions at other companies.
Some business owners find it easier to hire family members. On the plus side, family members are likely to have a personal relationship with the business owner so they will understand where the business owner is coming from and what’s expected.
The problem with hiring family members is that a family dispute can affect the business. Also, non-family employees might feel left and feel the family member has an unfair advantage.
Leon Gettler is a senior business journalist who writes for a range of leading newspapers and journals
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