CHAPTER 1
TAKING THE PLUNGE
Many people launch their small business, as I did, because they have an amazing idea or skill they love. Weâre excited to offer our passion or product to the world, and getting there takes a lot of education, hard work, and perseverance. We spend years dreaming of the full potential, planning for growth, building things from the ground up, and pouring ourselves into our work to make our vision a reality.
We find that as our business grows, the needs of our business grow, and to take things to the next level, we must find help and be strategic in order to keep things sustainable. Thatâs usually a sign that itâs time to hire. This is the crucial moment when you make the decision to work on your business, not in it.
Remember that from a business standpoint, if your organization doesnât grow each year, do new things, and increase in revenue, youâre actually doing worse because your costsâoverhead, payroll, and suppliesâincrease over time. You may be tempted to think itâs safer to keep things the same, but youâre doing more than just holding your business back. Youâre actually reducing its size and minimizing its potential. Many small business owners think that stability and staying the same is a good thing, but if you are not growing and improving, you are getting worse.
Itâs important to the health and longevity of your business to transform your mindset and think in terms of growth. Your focus should remain on doing more and doing better, even if it takes a while. Growing, adding new team members, and even turning over employees who need to go are signs that a business is doing well. Thatâs how your business will flourish, and the idea of a growing business should be something that makes any business owner excited.
Large businesses and corporations usually turn to their human resources (HR) departments or outside recruiting agencies when it is time to find and onboard the right talent. They have legal departments to vet contracts and keep current with employment laws. As a matter of course, CEOs or C-suite executives may never even meet many of the new hires who come and go unannounced.
For small business owners, however, a lot is at stake. For the purposes of this book, a small business is any business that has at least two employees and is actively hiring without an internal HR or legal department. When the owner or a manager performs the role of HR, it is still a small business, but when employee management becomes a full-time job, the business has graduated to the next level. In todayâs competitive economy, the effects of employee turnover and substandard work can be devastating to businesses, especially small ones.
When you only have a few employees, they play a critical role in your successesâand failures. They interact with your other employees, customers, clients, or patients and represent your business in a much more personal and immediate way than someone who works in a Fortune 500 company with hundreds or even thousands of employees.
Small businesses generally canât turn to an in-house HR or legal department to handle the hiring process and smooth out any wrinkles. As the owner, you have to wear all the hats, which means you need to know the basics of hiring if you are going to improve efficiencies, scale up, and grow your business for the future.
Iâve seen small business owners balk time and again at the idea of hiring additional employees. Many know it costs more than $4,000 on average to hire a new employee in the United States, with small business owners spending $1,872 to hire someone new and up to four months searching for the right candidate, depending on the job level.1 The average cost of hiring the wrong employee was $17,000 in 2017, according to a study by CareerBuilder, and no one wants to be one of the 62 percent of small businesses nationwide that say they made a bad hiring decision.2 In my industry alone, I know dozens of dentists who have been embezzled from because they didnât know how to hire the right people or put effective checks and balances in place.
Letâs take a look at some of the reasons why small business owners may be reluctant to consider making new hires:
Lack of training. Small business owners rarely receive a formal education in management because they learned along the way building their businesses. Theyâre just not sure they know how to actually hireâand fireâemployees. Few dentists, for example, receive any business training when it comes to talent acquisition or employee retention. They arenât taught essentials, such as how to build a good team, manage a team well, or transition employees when needed, and the idea of growing their company by increasing personnel can seem daunting.
Insecurity. Iâve observed that business owners are usually talented in multiple areas but assume they will fall short in terms of the soft skills and techniques needed to assess and hire a new employee. Feelings of inadequacy may cause them to delay or even ignore the task of hiring much-needed personnel.
Anxiety. As business owners, weâve all made mistakes and had bad experiences, which can dictate how we react to future choices. Thinking about managing the hiring process can cause anguish, stress, or anxiety, all of which can be eased when we know how to approach hiring in a smart, intuitive way that best addresses the direct needs of our business.
Lack of time. Most of us are busy enough just running the business and trying to stay healthy and survive. Unlike larger businesses, few small businesses have interns or extra support staff who can pick up the slack in day-to-day operations. Many people believe they can hardly keep up with their responsibilities already, let alone invest in training someone new.
While most small business owners âconsider talent to be the greatest asset to the success of their business (82 percent),â according to 2016 findings from Monster.com, âthe majority believe it can be time-consuming (89 percent) and expensive (70 percent) to find the right person for the job.â3 On top of everything else, the idea of advertising a job, screening candidates, and training a new employee can seem overwhelming. Many owners think that hiringâand hiring rightârequires their full attention, but they donât have the time or attention to give to the process.
Iâm here to tell you that âhireâ doesnât have to be a four-letter word, and you can learn to love hiring and experience it as a positive, gratifying process that launches your business into a stronger trajectory toward its full potential. With the right team, you can build and foster a team of people who love their work, contribute their skills and abilities, are proud of their efforts on your behalf, and represent your organization well.
Hiring is a way to make your business better and is a sign that your business is healthy and growing. And if you understand the key elements, youâll run a tighter ship, be more successful, and bring out the best in yourself and everyone in your organization.
Whether you are a current or aspiring small business owner, Hiring without Hesitation will provide you with the motivation, tools, tips, and best practices for hiring top-notch employees. Iâll show you the steps and strategies to hire candidates with methods that fit your business and needs. Though youâll find there isnât a one-size-fits-all process, youâll gain more clarity on how to tailor the experience in a way that allows you to hire the best candidate every time. Iâll also guide you into your first week with your new employee so you can start them off on the right foot, making your life easier and setting everyone up for success.
This doesnât mean everything will always be easy, but it does mean that youâll feel more prepared in your approach. Then, when you find the best match, youâll feel confident that youâre on your way to growing your small business into a larger one and appreciate that it was worth all the hard work. Finally, when you have success, you will start to feel more positive about the entire process.
CHAPTER 2
WHATâS THE JOB?
You may need to hire someone for any number of reasons. Maybe the business is growing, and you need salespeople on the road, talking to prospective clients or running booths at trade shows. Maybe youâre getting feedback that nobody is answering the phone or returning calls, so you need a receptionist or customer service representative. You may need to establish or expand your social media presence. Or it could be that youâre losing an employee and have a vacancy. When you notice a critical gap in service or performance that isnât being filled, itâs time to hire.
The best thing to do is to act when you see it coming. If you can predict this gap is headed your way, donât wait. When a position goes unfilled for longer than your business can truly handle it, you risk putting added stress on your other employees, which results in lower efficiency, productivity, and job satisfaction. In a worst-case scenario, someone may end up quitting if they are asked to handle too much extra responsibility for too long, which means you have not one but two open positions to fill.
Many times, small business owners think itâs easier to just take on everything themselves. Itâs common to think, âIâm better than anybody else at doing this task, and I need to get this done. Iâm going to work a couple extra hours at night and not get home in time to be with my family.â But that can only last so long.
Another reason not to wait too long to make a hire is that the pressure to bring on someone (anyone!) increases the longer you put it off. Thereâs an expression, âHire slow, fire fast.â A rush to hire often means you overlook key job criteria (skills, references, etc.) or compromise on what you really need. You may settle for someone âclose enoughâ to what you want and cross your fingers that theyâll work out, only to pay the price. As Harvard Business Review points out, this âbias for speedâ1 can result in hiring employees who are not the best fit for your company. That would be a mistake, and youâd be doing yourself and your business a disservice.
Youâll have a more successful hire when you set clear goals and invest time preparing for the right candidate. This will allow you to hire someone with the skills and personality you need, who fits in with your team, and who becomes part of your long-term growth strategy. To do this, itâs crucial to take an informal inventory and identify not only the job that needs to be filled but the soft and hard skills that are needed to do it.
Ask yourself: Why do I need to hire? What are the types of tasks that I could delegate to someone else? Where would a new hire fit in on my team? What kind of personality would work best? What skills and education are necessary?
To be honest, you wonât truly know if someone is a good fit for your small business until after theyâve started. Itâs kind of like dating. You can check off all the boxesâa certain age, lifestyle, geographic area, occupationâbut the less obvious things like chemistry and sense of humor are lacking. Once you start spending time together, youâll soon know whether you are compatible or not. Hiring a new employee is similar, but you can put the odds on your side by establishing a framework for a focused search and organized, transparent hiring process.
IDENTIFY THE NEED
What tasks do you need your new employee to per...