Because they are so busy working IN their businesses instead of ON their businesses, small business owners look to recruiting after an employee quits or turns in her or his notice, not before.
This reactionary behavior then puts the executive leader in a do-or-die must-hire position.
Effective recruiting starts before the position is available. The small business owner or CEO should invest the time to determine who would be a good candidate for any position. Of course, to make this decision does require the updating of all job descriptions.
Sales executive Jeff Hoffman, a faculty member at the Cornell University Johnson School of Management, suggests recruiting is no different than building a sales pipeline. Just as sales prospects and clients can leave your business, so can your salespeople as well as any other essential support personnel.
For larger firms, the executive leadership can direct other leaders in management to start looking for ideal candidates. This delegation may be a little more difficult for the small business owners who may lack additional management personnel.
Bad recruiting can lead to bad hiring. The cost of a bad hire is expensive especially if a recruiter was involved in this recruiting and hiring process.
According to the U.S. Department of Labor, the price of a bad hire is at least 30 percent of the employee’s first-year earnings. If you are an owner of a small business, 30 percent of $50,000 salary with or without benefits is $15,000. Can your small business afford a five-figure hit to the bottom line?
There are many articles on the Internet that provide specific tips to improve the recruitment process. Possibly one of the best is to speak to the employees and ask them if they know of anyone who would be an asset to the company. This question can be framed in such a way to demonstrate the small business owner is forward thinking and not looking to terminate any existing employee.
Recruiting today has dramatically evolved from the old classified want ads of the past. Websites such as Indeed or even LinkedIn provide a plethora of potential candidates.
What has not changed is the limitation of time and urgency. By being proactive instead of reactive, small business owners and executives can recruit the best and brightest.
Leanne Hoagland-Smith is an author, speaker and executive coach. Her weekly column explores issues that impact the bottom line of firms with fewer than 100 employees. She can be reached at 219-508-2859.
