Most small business owners know that hiring the right people is essential to their success. However, small businesses often face hiring challenges that don't affect larger organizations. Here are some of the most common hiring challenges facing small businesses today, as well as tips for overcoming them.
- Focusing too much on cost and convenience.
Many small businesses make the mistake of choosing cost and convenience over quality when it comes to hiring new employees. However, hiring people simply because they are available and willing to work for a lower rate isn't the best choice. Instead, look for employees who are going to add noticeable value to your business, even if finding them requires more effort and investment.
- Working with limited employee management experience.
In a small business, the owner or manager often takes on many different responsibilities, including staff management. Unfortunately, many business owners have little to no experience with the hiring and management of employees. This can lead to bad hiring decisions, poor retention and many other problems. To overcome this challenge, small business owners can access government or online resources for employee management or outsource hiring to an employment agency.
- Being unable to find qualified applicants.
Bigger companies have no trouble finding applicants for open positions. In many cases, they even have a list of interested applicants waiting for a position to open up. However, small businesses don't usually have this advantage. Instead, they have to work harder to find the right people for the job. Thanks to the internet and the rise of social networking, this isn't as difficult as it used to be. Small businesses can overcome this challenge easily by building an active online presence and aggressively spreading the word whenever they have a job opening. If you have a website for your business, you can also add a tab under Employment Opportunities to collect resumes. In addition to advertising online, larger companies can also find qualified applicants by participating in job fairs and advertising in local media.
- Being unable to compete.
Larger companies often offer better benefit packages, higher pay and more notoriety than a smaller business. However, small businesses have advantages too. Instead of trying to compete with larger businesses, look for ways to set your company apart and highlight its own unique value for potential employees. For example, you may be able to offer a prospective employee more opportunity to gain hands-on experience in lieu of a benefit plan.
- Lacking the resources to train applicants effectively.
While larger businesses may be able to develop streamlined, comprehensive training programs for new employees, small businesses don't always have this luxury. Unfortunately, poor training can lead to ineffective employees, high employee turnover and reduced profitability for the business. As a small business, you can overcome this challenge by taking the time to develop the strongest training program you can afford. Alternatively, you could also choose to work with a recruiting and training agency that handles these issues for you.
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