When hiring new employees as a business owner, you’re making critical decisions that will have lasting impacts on the success and growth of your business. This monumental task can be especially challenging for new business owners who may lack previous experience or a strong network of contacts in the industry.
Hiring a new employee requires finding an individual who has not only the right qualifications but also fits into the company culture, has the potential to grow with the company and is able to think creatively to solve problems. Moreover, employers should take into account their budget and timeframe for when they need a new hire in order to ensure they are making the best decision possible.
To dig into this issue a bit more, we asked HR and staffing companies the following question to help new business owners steer clear of pitfalls when hiring their own employees:
What are the biggest hiring mistakes you see new business owners make?
Work With a Recruitment Agency
“If they use a Recruitment Agency, like us, Cream City Recruiters, llc, they don’t make any mistakes. If they do it themselves, they need to find a well educated and experienced candidate.”
Monnie Holmes, President/Recruiter, Cream City Recruiters, LLC
Make the Right Offer
“Because new business owners don’t understand the supply and demand stress-points in the hiring market, they often make inappropriate offers and hire either above or below their standard.”
Eric Gaber, President, E&C Services, Inc.
Interviews Are a Two-Way Street
“Recognize that interviewing is a two-way street: candidates have to sell you on their skills and experiences and the new business owner has to sell them on why joining the company is in their best interest.”
Larry Ploscowe, President, EXEK Recruiters, Ltd.
Make the Hiring Process Clear
“Creating a clear hiring process, with clearly defined job descriptions, which they follow consistently, will help new companies avoid making a lot of bad hiring mistakes.”
Jamiel Kadri, CPA, Founder/President, Fulcrum Staffing
Don’t Forget About Soft Skills
“New businesses often make the mistake of focusing solely on technical experience when hiring. Soft skills such as communication, problem-solving, collaboration, and creativity are equally valuable in helping a business operate effectively.”
James Lloyd-Townshend, CEO, Frank Recruitment Group
Hire the Right Experience Level
“Many companies start out by hiring interns or very junior people. Those in top management promise to teach the juniors but never have enough time. They also hope that the senior people will remember enough to teach the juniors, and that results will be magically produced. This usually does not happen.”
Minda Hannenberg, Vice President/Senior Recruiter, Informative Recruiting
Mistakes Are Universal
“Hiring mistakes are universal. Regardless of company size, industry, or longevity, all businesses make similar mistakes. And these mistakes are all based on the essential failure to recognize that every company’s most important product is its people.”
Stephen Karel, Founder/President/CEO, Karel & Company
Make Your Requirements Clear
“1. Watering down their requirements. 2. Not quantifying how they will measure performance. 3. Not defining the terms they use in soft skills.”
Tom Ferree, Owner, SecurEmploy
Not The Right Fit
“The biggest hiring mistake business owners consistently make is to base all of their hiring decisions on perceived talent. Talent means nothing if the employee candidate is not value-aligned and a culture fit.”
Troy Rulmyr, Business Consultant/Coach, Vanguard Collective
See More Candidates
“We recommend meeting with 3–5 candidates before making a hiring decision, even if you believe you have a single strong referral. If nothing else, seeing what the market has to offer can help you move forward with your original candidate with more confidence that they are the best option. That said, you can go too far with interviewing. Interviewing too many candidates for a role is time-consuming and doesn’t always create added benefits.”
Nikita Weisgerber, CPHR, SHRM-SCP, VP Operations, TPD
Not Enough Vetting
“I hired someone that I thought would be the answer to all my problems. I gave them too much authority, and it almost destroyed the business. I can only thank God that we managed to come back from total disaster.”
John Cassandra, Recruiter, TCA Consulting Group, Inc.
Reaching the Wrong Audience
“The most common mistake I see business owners make is in marketing – that is, being inconsistent and not reaching audiences who can best serve their business.”
Mary M. Howard, Chief Executive Officer, MMH’s Pro’fessional Legal Services and More, LLC
Pay Now or Pay Later
“Be realistic with your requirements and know what the pay scale is on the open market. If you pay someone less than the going rate, it will be a matter of time before your new hire will look for another opportunity with your competitor. Money is always important but it may not be the most important. Candidates in the marketplace are also looking for a place to grow professionally, a work-life balance, and to feel like they are part of the team.”
Judy Collins, President of Judy Collins Staffing Resources, Executive Director of United States Staffing Association
Must Fit Company Values
“The biggest hiring mistake we’ve made is hiring a candidate that didn’t fit all of our company values. Our best hires are the candidates that fit all of our company values. Therefore, when we interview, we not only screen the candidates according to the skills needed for the job, but also on whether or not they fit our company values.”
Joe DiGiovanni, Executive VP | Corporate Job Bank
Hire Proactively Not Reactively
“New business owners will often hire in reaction to the last bad hire as opposed to what the position actually requires.”
Valonda Banks, Co-Founder | Liberty Employment Solutions
We’d love to add your voice to our expert roundup. Please message us today with your answer to our question:
What are the biggest hiring mistakes you see new business owners make?