Best Practices for Small Business Hiring

Every month, small businesses across the country contribute thousands of new jobs to the workforce. If your business is growing, it might be time to expand your team as well. Whether you’re new to hiring or it’s just been a while since your last recruitment push, brushing up on hiring fundamentals can make all the difference.

Hiring may seem straightforward—post a job, pick from a sea of applicants, and get someone started. But in reality, recruiting the right person takes time, money, and strategy. A 2015 Deloitte study revealed that U.S. companies spend thousands of dollars and nearly 50 days on average to find and train a new hire. That’s a serious investment—so it pays to do it right from the start.

Here are some best practices to help your hiring process succeed:


1. Expand Your Reach When Recruiting

Posting a job ad is just the beginning. Broaden your efforts to attract the best talent:

  • Leverage Your Network: Let fellow business owners and professional contacts know you’re hiring. A trusted recommendation can lead to a perfect fit.
  • Ask Your Team: Your current employees are an often-overlooked recruitment channel. Consider a referral program that rewards team members for successful hires.
  • Promote from Within: Don’t forget your top performers. Promoting internally can boost morale, reward loyalty, and reduce turnover—just be sure to backfill the promoted employee’s role thoughtfully.

2. Interview with Intention

A good interview goes beyond a checklist of standard questions. It’s a structured conversation designed to uncover the candidate’s qualifications, character, and fit.

  • Prepare Thoughtfully: Develop questions that directly relate to the skills and qualities you’re seeking. Anticipate the responses you’d hope to hear from your ideal candidate.
  • Address Resume Gaps: Don’t ignore red flags. If there are employment gaps or unusual job changes, ask about them. Give candidates space to explain—context matters.
  • Lead by Example: Be on time, be professional, and create an environment that reflects your company’s culture.

3. Prioritize Passion

Experience and qualifications are important—but passion often sets great hires apart from good ones.

  • Did the candidate research your company before the interview?
  • Are they genuinely excited about the opportunity?
  • Do their answers reflect drive, curiosity, and enthusiasm?

Sometimes, the best hire isn’t the one with the longest résumé—it’s the one who brings energy, commitment, and a desire to grow with your business.


4. Move Quickly

Once you’ve found the right person, don’t delay. Top candidates often receive multiple offers—and won’t wait around forever.

A study by MRI Network found that 1 in 5 job offers are turned down, with delays being a major factor. Of the rejected offers, over a third had taken more than three weeks to be extended. The takeaway? Time matters. Aim to make an offer within days, not weeks.


5. Offer Competitive Compensation

Don’t expect top-tier talent at bottom-tier pay.

Do your research on market compensation for the role you’re hiring. Offering a fair salary and benefits package is essential—not just for attracting talent, but for keeping it. Underpaying employees can lead to high turnover and lost productivity, costing you more in the long run.


Thoughts

Hiring the right person is one of the most important decisions you can make as a small business owner. By being intentional, acting quickly, and offering fair compensation, you’ll increase your chances of building a loyal and high-performing team.


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