The Small Business Guide to Smart Hiring: 5 Essential Actions

I would be a millionaire if I got a dollar from every business owner who tells me they cannot find good team members.

It isn’t and shouldn’t be hard.

I call out bullshit when I hear this!

Having said that, hiring can be a daunting process filled with uncertainties for small business owners.

You just need a process, consistency and discipline.

So let’s have a look at five clear, simple, and focused actions you can take today to improve your hiring process and build a winning team.

Define Your Ideal Candidate Profile

It starts with your preparation.

Do not take shortcuts.

Before starting the hiring process, define the qualities, skills and experience you seek in an ideal candidate.

Your business culture, values and team dynamics are a big part of identifying the right fit.

Create a comprehensive job description outlining the roles and responsibilities to attract candidates who align with your vision and values.

This will not only save time during the hiring process but also ensure you bring in candidates who are more likely to excel in their roles.

Actionable Step 1: Leverage team member referrals

Your existing team members can be your best advocates and talent scouts.

Encourage them to refer potential candidates who they believe would be a successful hire.

These candidates often have a higher retention rate and fit well within the company culture, as your team members take responsibility when they recommend someone.

Let your team know the value of referrals and offer them incentives for successful hires.

Make it easy for your team members to submit referrals and track the progress of each referral.

In addition, use your networks to find candidates.

This makes it a cost-effective and efficient hiring strategy.

Actionable Step 2: Implement Structured Interviews

Many small business owners make the mistake of conducting unstructured interviews, leading to inconsistent evaluations and missed opportunities to assess candidates thoroughly.

Implement a structured interview process with a set of standardised questions and evaluation criteria.

Whoever interviews the candidates, must know how to conduct structured interviews - ensuring they assess skills, experience and cultural fit consistently.

I like a scoring system to ensure objectivity.

This will help you compare candidates (to the role, not other candidates) objectively and make informed decisions.

Actionable Step 3: Emphasize Soft Skills Assessment

Create a list of key questions that align with the candidate profile and job description.

While technical skills are important, don't underestimate the importance of soft skills and culture.

Small business environments demand strong teamwork, adaptability and communication.

Incorporate specific questions or exercises in the interview process to gauge a candidate's soft skills, such as problem-solving scenarios or role-playing exercises.

Actionable Step 4: Use behavioural-based interview questions

Develop a set of behavioural-based interview questions that assess soft skills relevant to your business needs.

Use these questions during interviews to gain deeper insights into the candidates' abilities beyond their qualifications.

Here are some examples:

1. Tell me about a time when you faced a challenging deadline. How did you prioritise tasks and ensure timely completion?

2. Describe a situation where you had to work collaboratively with a difficult team member. How did you handle the situation, and what was the outcome?

3. Can you share an example of a project where you encountered unexpected obstacles? How did you adapt your approach to overcome these challenges?

4. Have you ever disagreed with a supervisor's decision? How did you communicate your concerns, and what was the resolution?

5. Tell me about a time when you had to handle a dissatisfied customer or client. How did you manage their expectations?

6. Describe a situation where you had to take the lead on a project or initiative. How did you motivate and guide your team?

7. Can you recall a time when you made a mistake at work? How did you acknowledge the error, and what steps did you take?

8. Share an experience where you had to prioritise multiple tasks with tight deadlines. How did you manage your time effectively?

9. Describe a situation when you had to resolve a conflict between two team members. What steps did you take to mediate the situation?

10. Can you share an example of a time when you had to adapt to a significant change in the workplace? How did you handle the transition, and what did you learn from the experience?

Actionable Step 5: Use trial periods or small projects before making an offer

For shortlisted candidates, offer a paid trial period or a small project contract to assess their skills and potential contribution.

Use this period to evaluate their performance and gather feedback from the team before making a permanent offer.

Conclusion

The above five practical actions are inspired by the experiences of our founder Troy Trewin and our Growth Leaders Mick Denehey and Rob Cameron, in addition to some successful small business owners.

Remember, hiring is not just about finding someone with the right skills; it's about finding the right fit for your culture and long-term goals.

In a recent podcast of ours, our guest, Adam Kirk, shares a valuable insight about the hiring process for small business owners.

“I think the biggest thing that I've learned, and that is, you've probably heard the saying to hire slow fire fast. Someone told me that years ago, and it is so true. We just went through the process of hiring a new team member over the last two months. And generally speaking, I mean, this was one of the quicker ones. But I would say generally speaking, it's easy for us in this industry in the way I handle things, it's a two to three to four month process to hire someone. Well, lots of interviews, lots of references, lots of background checks, and all kinds of stuff to make sure that you're getting the right person. And I would say, on the flip side, like I've learned the hard way, when you know, someone's not a good fit, show them the door and show it to them fast. Because otherwise it's toxic”

Also, Emily Ciardiello in our podcast episode 386 emphasizes the importance of culture.

“And what we've learned along the way is to put in your advertisement that you have a certain culture. So we put things like we are transcendental meditators, we believe that the universe delivers what you need at the time, so that we can make sure that when people do apply, that they're into that kind of thing, because that's what our culture is like. Here, we have a lot of our team members who meditate or do some kind of reflective, self development, breathing, podcasts. They don't just work here and then go home, they they have other things that they really value, as well”

Michael Nuciforo, in our podcast episode 387, also mentioned the importance of culture in hiring, in which he has a checklist to assist those that undertake the interviews.

“I've got someone in the team who is very perceptive about people. Great people persons can read people like a book, so we get her to do a cultural interview, which has got a set of questions to identify whether the person that is applying for this role exhibits the characteristics that we want through our values”

Actions A Small Business Owner Take for Hiring Success

You can implement the "hire slow, fire fast" principle today by reviewing your current hiring process.

You must focus on creating a well-defined candidate profile, conducting structured interviews, and placing a strong emphasis on cultural fit and soft skills assessment.

By taking these actions, you can build a successful team that contributes to the growth and success of your business.

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