Hiring Best Practices for Small Business

Goals

To understand the best practices for each key step of the hiring process for a small business (less than 10 person team) as well as some templates/examples for rejections or offer letters in order to outline a hiring strategy and validate the process.

Early Findings

KEY STEPS IN HIRING FOR SMALL BUSINESSES

1. Creating the Position

  • The first and foremost step for small business owners while hiring is to give careful thought to whether they really need an employee for a certain role. This can be done by calculating the number of hours per week it normally takes to complete the work under this role. If the hours per week are very few, an employee might not be needed for this role.
  • It is also important to determine if a full-time or a part-time employee is needed for a certain role based on the nature of the work under this role. This can be done by carefully evaluating the pros and cons of hiring a full-time employee, a part-time employee, or a contractor to best serve the company's needs. For example, for a short-term project, hiring a temporary employee can be more feasible for the small business.

2. Creating a Compensation Package

3. Finding the Right Employees

4. Shortlisting/Screening the Best Candidates

5. Conducting Interviews/Assessments/Skill Tests

  • To interview the pre-qualified candidates, it is best to do "structured interviews" as asking a similar set of questions allows for an apples-to-apples comparison of the candidates.
  • Other best practices for conducting interviews include asking questions to asses how well a candidate will fit in the company, what his/her plans and expectations are, and how has he/she dealt with conflicts.
  • Asking an out-of-the-ordinary question also allows to evaluate the creativity of a candidate and provides a glimpse into his/her personality.

6. Recruiting/Rejecting Candidates

  • It is important to let the rejected candidates know that their application isn't successful. The best practice is to be direct and honest and provide personalized feedback to the rejected applicants.

OFFER/REJECTION LETTER/EMAIL TEMPLATES

  • Some templates/examples of a job offer letter or email can be found here, here, and here. The essential components of a job offer letter can be found here.
  • Some templates/examples of a rejection letter or email can be found here and here. The essential components of a rejection letter can be found here.

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