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Why is the Hiring Process a Challenge for Small Businesses?

Do you find the hiring process for your small business a challenge? If so, know that you are not alone. It turns out that most small business owners list hiring as one of their top challenges.

However, while the hiring process can be a challenge, it is a significant activity for any company that has employees. This is because the people you hire for your business can either be assets who help your company achieve its goals or is hindrances who might be the reason you fail.

With your employees being such an essential part of your success as a small business, it’s time to move from viewing hiring as a top challenge to seeing it as an excellent opportunity to find the talent that is going to help you succeed.

This shift, however, often takes time, guidance, and sometimes even training to achieve. I often find that before one can see and accomplish the positives of the hiring process, they need to discuss the challenges. Therefore, let’s take a look at some of the reasons why you might view hiring as a challenge and how you can reduce that feeling.


Challenge #1 – You don’t hire very often

Throughout life, we are told Practice Makes Perfect. I, for one, believe this is true for when it comes to hiring.

For me, I love everything about the hiring process. I know that I can walk into interviews with confidence and walked out knowing I am making the right decision.

However, this was not always the case. I remember being a nervous wreck while interviewing. After all, every decision I made impacted someone’s career and my company’s success.

Being unsure and uncomfortable with the process is where most small business owners fall.

If your company is like a lot of small businesses, you are running lean with few staff members. This means that you are most likely not getting the practice of interviewing that often.

When you do not interview often, two things tend to happen when the opportunity comes. First, you can become nervous. This can lead to fear to overtake the process leaving you focusing on how quickly the process can end versus making sure you can find the right candidate.

Second, you do not prepare as you should. Those who often conduct interviews feel confident in the process because they have it down to a T. It runs like a well-oiled machine, and they do not have to worry about forgetting a step or what to do next: they prepare everything they need beforehand.

When you do not prepare, you tend to wing it.

Does this resume make the applicant look qualified? Sure!

What questions should I ask during the interview? Whatever comes to mind!

Are we planning on doing a second interview? Who knows?!?!

Winging it is never the best option.

Even if you do not hire often, you can still feel comfortable with hiring if you create a strategy in advance.

Challenge #2 – You are not looking for the right people

When asked why hiring is a challenge, a typical answer is that there is a lack of qualified candidates.

When I dig into the no qualified candidates issue with clients, I often find that there is one of four reasons that they are not finding whom they need.

First, you do not really know whom you need. With most small business, every role tends to be different as you look to bring on a new skillset. Therefore, you might not fully understand what it takes to achieve success in that role, or you might not understand the right position to fill to reach your goals.

Second, small businesses often have tight budgets and as a result, try to offer compensation that does not match the position’s requirements or experience level desired. It’s very rare that you are going to find someone who is willing to take a pay cut or earn below the industry standard to work for your business. Always make sure you are offering the industry average for that position. If you cannot pay that level, readjust your expectations.

The third is not posting the job opening in right places. Based on the position type and the level of expertise desired, publish the position on the appropriate job boards. There are hundreds of job posting options. If you do not post in the right place, your perfect candidate might never apply.

The fourth reason is not knowing how to determine if the candidates you are interviewing are qualified. This is often one of the biggest challenges and creates so much of the anxiety that comes with hiring. However, the cause is often tied to not knowing whom you are really looking for because you did not create a solid hiring plan.


Challenge #3 – You rush it because you need the position filled yesterday!

When you want to fill a position quickly, you tend not to take the needed time within each step of the hiring process. This then often leads to an unorganized process that leaves you with no good candidates left to take the job.

When you are rushing and disorganized, the candidates can tell. If they think your hiring process is chaotic, they will probably think your company overall is disorganized. This can lead to your perfect applicant not wanting to work for you.

Also, there are many platforms today that allow people to share their interview experience. If they did not enjoy the experience, and share their review, it could result in other people deciding not to apply. After all, most good candidates research companies before they apply.

It is always best to take your time with the process because even though you need someone now, you want to make sure you hire the best person in the end.


What can you do to reduce the hiring process challenge?

The number one thing you can do to reduce the challenges of hiring is to create a hiring strategy. You need to have a plan!

A Hiring Strategy can help you:

  • Feel confident throughout the process by showing you what you are supposed to be doing each step of the way.
  • Ensure that you are finding the right people to interview and that you are making the right choice for who to hire because you know who exactly you are looking for and how to find them.
  • Outlines where you should focus your efforts, so you feel that time is well spent and that you are on track instead of feeling the need to rush.
  • Creates a positive interview experience for both you and the candidates which in turn can lead to more qualified people wanting to work for your small business.

Ready to create or perfect your hiring strategy? Schedule your discovery call today to see how I can help you create a hiring strategy that will reduce your hiring challenges.


Why is the hiring process a challenge for small businesses?