The Ultimate Small Business Hiring Guide
How to Find the Right Fit for Your Team
For most small businesses, every hire is a big deal. With fewer than 10 employees, each new team member makes up about 10% of your workforce, so finding the right fit is crucial. But with a thousand different hiring methods out there, it can be overwhelming to figure out where to start.
When I was figuring out how to hire effectively, I turned to the data. Research shows that structured interviews, mental ability tests, and other standardized assessments can predict job success fairly well. However, even the most reliable method—structured interviews—only gets you so far. Combining several hiring methods offers the best results.
In this guide, I’ll break down the essential steps of a hiring process that you can customize based on your resources, timeline, and the role you’re filling.
1. Define Your Hiring Needs
Think strategically about both your current and future staffing needs. What are the skills and capacities that your business is missing? List out the roles you need to fill and envision what an ideal candidate—your “A-player”—would bring to the table. Also, consider what your budget allows for compensation, benefits, and other perks. Non-monetary benefits, like flexible working hours or professional growth opportunities, can make your offer more attractive.
2. Create a Compelling Job Description
An engaging job description does more than list responsibilities—it shows candidates why they should want to work with you. Make sure to include:
Duties and Responsibilities: What will they be doing day-to-day?
Soft Skills: Are you looking for a team player, a leader, or someone who thrives independently?
Qualifications: Be clear on the level of education, experience, or specific skills needed.
Company Culture: Tell them about your business, your mission, and your values.
Tools & Software: List any programs or technologies they’ll need to use.
Once you’ve covered the basics, polish it up using my top tips for writing a job description that attracts top talent.
3. Outline Your Application Process
Decide on a simple but effective application process. This could be as straightforward as submitting a resume, or you might ask for a cover letter or video introduction. I like to go a step further and ask applicants to submit a one-minute video explaining why they think they’re a great fit for the role. If they’re not willing to invest 60 seconds in this step, they’re probably not the right fit for me.
Using specific application instructions also helps weed out applicants who aren’t paying attention. For example, ask them to include a specific subject line or answer a unique question. These small filters can save you time by ensuring only serious candidates apply.
4. Know Your Legal Obligations
The legal aspects of hiring may not be the most exciting part of the process, but they’re essential. Make sure your hiring practices comply with local labor laws on minimum wage, workplace safety, and anti-discrimination. Check with your HR department or consult a lawyer to ensure you’re protected and in compliance with the law.
5. Promote Your Job Opening
To attract the best candidates, you need to reach a broad audience. Post your job on your website, social media channels, and popular job boards like Indeed, Glassdoor, Find.work, Remote.Biz and ZipRecruiter. Also, consider industry-specific platforms, college job boards, and sharing the post with your network. One note of caution: some job boards strip out email addresses and website links from postings, so be mindful of that when creating your listings.
6. Set Up a Candidate Funnel
As applications roll in, sort them into “Interview,” “Maybe,” and “No” categories. This streamlines your process and helps you focus on the best candidates. After a week, reach out to your top choices for further assessment testing.
7. Conduct Interviews
When you’re ready to start interviewing, use a structured format to keep things consistent and fair. I like to include a mix of general questions about career goals and past experiences, as well as behavioral questions that reveal how a candidate might handle specific situations. Here are some examples:
Career Motivation: Why are you interested in this position? Why are you leaving your current role?
Strengths & Weaknesses: What are you good at? What do you need to improve?
Behavioral Questions: Describe a time you handled a challenging situation. How do you set goals?
8. Do a Thorough Reference Check
Reference checks shouldn’t just confirm employment dates; they should provide insights into a candidate’s strengths and areas for growth. Ask specific questions that align with any concerns or observations from the interview. This is your chance to validate your impressions and make sure you’re making the right choice.
9. Extend an Offer
Once you’ve found your top candidate, make an offer! Have a lawyer draft the contract to ensure it covers all the necessary legal details. And remember, it’s best to be generous within your budget when it comes to salary and benefits. A positive start sets the tone for high morale and job satisfaction.
One Last Tip: Aim for “A-Players”
In any role, it’s easy to settle for a “B-player”—someone who meets most of the criteria but isn’t exceptional. A-players, on the other hand, are the top 10% of talent in their field and are typically 7-10x more productive. Don’t rush into hiring if you’re not finding A-players. Taking the time to find the best fit will pay off in the long run.
Hiring is both an art and a science, and by following these steps, you can build a solid foundation to find the best talent for your small business.