Small or newbie entrepreneurs usually make some very expensive hiring mistakes which could be avoided with diligence and planning made ahead. As a new business owner, it is very easy to get overwhelmed and want to share responsibilities at all costs. But the key is building a system that runs without the day to day oversight.
Below are 6 commonly-made hiring mistakes that can do harm to any business.
Hiring family and friends
Hiring family, or worse yet, friends can many times, destroys the business or the relationship and sometimes, both. There is a level of dynamic involved in running a business, especially a budding one, that should not come into a personal relationship.
When we pick employees we are familiar with, we are subconsciously hiring in comparison to ourselves. Try to find people who think differently than you in a way that complements your thinking.
Valuing education/experience over skill
While it may be hard to get a real handle on a person’s skill level by reading their info on a resume and sitting with them for a half an hour, there are signs to look for. Do they have hunger but lack the experience you were hoping for? Hire them!
If they have the raw intelligence and charisma but only a year of experience behind them? There’s no need searching endlessly. Just hire them!
Hiring in a hurry
Take your time in searching for good people. They are out there, but at times are hard to attract to get. It is better to work extra hours covering a vacant shift than to hire a person that causes a lot of problems. Rushing into a hire is one of the biggest mistakes a business owner can make.
Making a bad hire can cost a company big time –causing reduced productivity, compromised work quality, negative employee morale, and wasted time.
Being vague about expectations
There are issues of values, vision, culture, context etc. that need to be creatively and intuitively addressed in the hiring process. Be very clear to applicants about the positives, as well as the negatives of the position.
Be brutally honest about the hours and tasks required, etc. Make sure they really understand and are willing to perform the duties needed.
Don’t lose a highly qualified candidate because they want more than you’re offering. It’s true that you can hire anyone better than the candidates you find, but never hire a candidate who doesn’t fit with your organization’s values and cultures, even if they come cheap.
Be aware of any potential internal issues in salaries and entitlements, then deal with them before you decide.
No reference checks
For a small business, reference checks are particularly necessary, if you want to develop a complete understanding of your candidate. It’s too easy to misunderstand the real candidate, since the interview process is often flawed.
The truth is, if you don’t do your homework, you deserve what you get.
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