When a business owner opens up shop, there are several costs that he or she must consider when building their budget. They soon realize that employees are one of the costliest investments they must make.
Employee turn-over costs businesses billions of dollars annually. According to the Society for Human Resource Management, replacing an employee could cost between 90 and 200 percent of their annual salary.
Not having the right team in place can negatively affect a business’s bottom line and create unnecessary stress and conflict even for those who are exceptional employees.
So how can you guarantee you are finding the right employees for your business? Here is a list of six things to keep in mind during the hiring process:
Set company values and goals.
It is important for every business to set clear company values and goals. Every employee should possess similar values and should be working together to achieve the same goal for the business. Each employee will have their own goals, of course, but in the end, they should all collectively have the same end target in mind. You want to find an employee that will fit in with your company’s culture. Make sure their personality and social skills are similar to yours or your current employees.
Identify specific skills needed for the position.
As each business grows, so does the need for new positions and news skillsets to accommodate those positions. As time passes, you will learn new, more efficient ways to complete tasks, so it is important to hire employees who have multiple skills and who are capable and willing to adapt to change.
Don’t be afraid to look internally.
If you already have a great team and are experiencing growth, your current employees may already have the new skill sets you are looking for. You know whether or not they share the same values and goals you are looking for. Your model employees may have hidden talents that will make them thrive even more in a new position. This will also give them confidence and create a bond of trust and loyalty that will encourage them to stay at the company longer.
Turn to your employees for recommendations.
People tend to surround themselves with like-minded individuals in their personal life. If you have a model employee, chances are they have friends with similar personalities and ideologies. They might be the best resource for you to find new additions to your team. You can even create an incentive program to help encourage them to find new employees. For example, you can distribute a bonus if the new employee stays at the company for a certain period of time. Not only do you find new valuable employees, but you also boost company morale.
Break up the mundane hiring process.
In order to ensure you are getting a good glimpse of their personality or their compatibility, engage the employee as much as possible during the hiring process. Many people are often more nervous than usual when sitting down for a job interview. Oftentimes you will get rehearsed answers and a façade, rather than a glimpse of who they really are. Break the routine. Get them out of the stuffy office and have them meet you for coffee or lunch. Changing venues and getting them around other people may allow them to display their natural social cues and personality.
Do your research.
Obviously reference checks are key in the hiring process, but current hiring laws limits the scope of the information you can seek when making those calls. For a better glimpse into whether or not a potential candidate’s personality is the right fit for your company, check their social media presence. According to a 2018 CareerBuilder survey, more than 70 percent of employers use social media to screen candidates and more than 40 percent view current employee profiles. It’s important to note though that legal hiring practices need to be followed. If you find information that you cannot ask about in an interview, it should not be used to make a hiring decision.
Social media platforms are a great recruiting tool as well. Facebook and LinkedIn have recruiting features that can be very beneficial.
Investing in quality employees that are a great fit with your company culture means investing in your bottom line. Save yourself the stress, money and headaches by taking the time and energy to find the right people instead of just someone who can fill the spot.
Kyle King is a business consultant at the Florida SBDC at University of South Florida.