Up and to the Right | 2017 Episode 02 | Hiring for Small Business

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Hiring can be rewarding when you've found just the right person with the right skills and experience that will fit perfectly into the culture of your business. It's a big commitment though... for both of you. As a business owner, there are a few strategies you can use that will increase the chances that your hiring process will go as smoothly as possible.

  • The Three Question Test
  • Determining & Evaluating the Cost
  • Preparing to Hire and Bringing Them On-Board
  • Where do I Look?

In Episode 02 for 2017 I'll share my three question test for every hire along with an evaluation of cost. Front end preparation is an important part of a successful hire as is the process you go through to help them acclimate to working for your company. Where is the best place to find that new hire...? Listen now for all this plus there's a worksheet you can download below to help you evaluate your hiring process. 

Intro Video

Listen & Download

Resources

Worksheet

Google Docs Version

You can copy this to your own Google Drive to edit online. This is the first time I've used this so let me know what you think in the comments below!

Small Business Hiring Template

PDF

If you're not a Google user here's the PDF version.

Download

Reading Room

E-Myth Revisited by

Get it on Audible here: E-Myth Revisited

Get the dead tree version here: E-Myth Revisited

Show Notes

The Three Question Test

This quick test can help put some practical boundaries around hiring a permanent employee in your small business.

  1. Are the job responsibilities you would be hiring for regular, recurring and continuously needed to operate your business?
  2. Does the position you would be hiring for contribute directly to the core value that your business delivers to your customers?
  3. Can you afford to pay for the salary and support of a new employee without additional operating profit?

If you answer "No" to any of the three questions it's a good indication that you should consider every possible alternative before you decide to hire someone.

Analyzing the Cost

There are two basic considerations here.

Can you afford to pay for the new hire with no change in business performance? We do this by reviewing the recurring costs associated with a new employee and the one-time hiring costs. See the worksheet in the downloads section above for a template to get you started.

Recurring Costs (examples)

  • base salary
  • overtime
  • benefits
  • legal requirements
  • business insurance
  • etc.

Note: If you have questions about Operating Profit refer to the 2016 Week 48 Episode of Up and to the Right.

One-Time Hiring Costs (examples)

  • equipment/tools
  • furniture
  • space
  • software licensing
  • hiring costs

Prepping to Hire

Before you even list the job opportunity or start reviewing candidates do some work up front to get the most out of the process.

  • thorough job description
  • required skill list
  • specific abilities list
  • how you're going to bring them aboard
  • create a training plan

Where to Look

Finding the right place to find the right person can be a challenge. Generally speaking the most effective way for both employers and talent to connect is by personal referrals so invest in the professionals around you and build your online professional networks on resources like LinkedIn before you need to find a new coworker.

  • *referrals
  • family
  • online (Monster, Careerbuilder, etc.)
  • staffing agencies
  • local media classifieds

Do you have any hiring tips that have worked well for you? Share them in the comments below!