Starting off on the right foot is good way to go about doing, well, just about anything! Whether you’re literally getting out of bed in the morning or starting a new job, everyone wants to get a jump-start the right way. The same can be said about starting a new business.
One of the biggest challenges for new business owners is deciding who bring on board to your new company. These are the people that can potentially make or break a small business. Therefore, it’s essential to the hire the right way.
Hiring is more than just skimming over resumes and choosing whomever has the best looking experience. It’s all about fully assessing the candidates in your hiring pool and choosing the best possible choice that’ll be ultimate fit for your open position. Otherwise, you can bet on spending an unnecessary amount of money on employee turnover. According to a recent article, it can cost up to 30-50% of an entry-level employee’s annual salary!
Getting Familiar with Hiring the Right Way
Before you start worrying about turnover, you need to know how to find and select the best options for potential employees. And before you can do that, it’s important to get familiar with the different terms and stages of a proper hiring process. For starters, here’s a few you should know:
CANDIDATE EXPERIENCE - The overall experience a candidate has with your hiring process; from the initial visit to your career site to the final steps of the interview process. It is measured by how many clicks, emails and contacts the candidate has with the hiring manager/recruiter. A good candidate experience will improve your overall hire quality and process.
APPLICANT TRACKING SYSTEM - Like a sales CRM but for recruitment purposes. A software application that enables the electronic handling of hiring and selection needs. It also provides the business with a tool that enables candidates to apply for jobs. A good ATS organizes your hiring process and is a valuable resource to help hiring managers save time and money.
BEHAVIORAL INTERVIEWING - Defined as a style of interviewing where the interviewer asks pointed questions about the candidate’s past behaviors and experiences in order to predict how they might behave in the future. Rule of thumb: What your job candidates did in the past is likely to predict how they will perform similar tasks in your job in the future.
BACKGROUND CHECKS - The process of looking up and compiling criminal records, commercial records and financial records of an individual before employment.
These are only a few terms to become acquainted with before you start your small business hiring. While it might seem like a hectic process at first, take comfort in knowing there’s always a way to start off on the right foot—and that’s educating yourself on how to hire the right way.
Thinking about hiring for your small business? Get a head start by downloading our complimentary eBook!