Hiring Challenges in Small Businesses

Many small companies are struggling to get into a position where they are fully staffed and able to operate effectively. Currently, unemployment rates are hovering right around 4%. This means that there aren’t a lot of candidates in the market who are pursuing new opportunities. In turn, this makes hiring more challenging than ever, especially for smaller companies who don’t have an internal recruiting resource. 

Over the last three months, I have had the opportunity to meet and talk with small business owners from all over the country, and I work with a variety of businesses which all operate in different industries ranging from healthcare, financial services, construction, distribution, manufacturing, and independent medical offices. Each of these businesses have one thing in common – one of their biggest challenges to date is being able hire and retain quality employees.

In order to thrive and grow, it is imperative that business leaders know how to hire and retain the right people. Hiring someone just to fill a seat isn’t going to solve any problems, and it’s likely going to create more issues in the long run because companies will have to backfill the position in a matter of months. If you thought you didn’t have time to recruit, you definitely don’t have the bandwidth to train, then rehire and train a second new employee!

Below are a few tips that small businesses can use to be more competitive in attracting and hiring talent. 

Job boards are not always the most effective way to find great talent.

You can’t rely on job postings to find the best candidates in today’s competitive market. We already know that hiring is a struggle for companies in all areas of businesses and of all sizes, and companies are doing everything in their power to retain their employees, especially the ones that bring raw value to your company (for example, you have a competent employee who is highly reliable and someone that you enjoy working with on a daily basis… hang on to them!). With companies making employee retention a key focus, employees are not actively seeking new opportunities, so the chances of them seeing the position that your company posted on a job board are slim to none. 

Posting a job on a job board is easy—a couple clicks and you’re done! You can then shift your focus back to the list of tasks that require your attention. But what are the results that you’re getting from those applications? I recently attended a recruiting seminar where the speaker shared an alarming, though not surprising, statistic. Seventy-four percent of online job applicants are not qualified for the positions that they apply to. Seventy-four percent! 

Companies need to be more intentional with their recruiting approach.

Companies need to take a direct, targeted approach to reaching the type of candidates that they are looking to hire into a specific role. How do they do this?  Network with potential candidates at industry events, attend career fairs, ask current employees for referrals and utilize a recruiting service to help you find the right candidate. It may take time to find a company that you feel comfortable working with and representing your brand, but it’s their job to present you with the best candidates so that you can focus on running your business. 

Making the hiring process as quick and efficient as possible. 

At this point, it’s clear that there is a major shortage of talent in this ultra-competitive market. Businesses, especially smaller ones, cannot afford to lose out on a solid candidate all because the hiring process is too long. When you are bringing a candidate in for an interview, it is imperative that the hiring process is minimized. If your typical process is for an individual to come in and interview with the hiring manager, be invited back for a second round of interviews to meet with individuals on the team and another manager, and then be invited back again for a final interview with one of the executives or the business owner, chances are this candidate will be gone before you can schedule the final step. If a candidate is active and looking for a new opportunity, your company is most likely not the only one on their radar. A shorter interview process does not mean less thorough or comprehensive. The interview process can still be in-depth and thorough, and be conducted over a one or two-day period. It may just take a little extra effort in working to align calendars for those participating in the interview process. Unpredictable situations still happen with small businesses so it’s very possible that one of the interviewers may unavoidably be pulled in another direction. It’s important to have a backup/alternate interviewer slated to fill in just in case.

Ideally, the goal should be to have all interviews completed in one day and for the interviewers to debrief the same day in order to make a timely and effective decision. Be aware of other companies who already have this strategy in place. Those companies who have a concise and engaging process are the ones securing talent!

Leveraging the candidate experience.

The candidate experience has long been an underrated concept. Companies are no longer in a position where they are in the driver’s seat and calling all of the shots when it comes to interviewing. It has become a two-way street.

Candidates now have the power to pick and choose which companies and roles they want to pursue opportunities with. That is why it is imperative that a candidate not only has a good experience when they come in for an interview, but a memorable one. You want the candidate to leave the interview and be able to envision themselves working at your company. But how do you do that? 

• Don’t leave the candidate sitting alone in a conference room… waiting. Be on time and thank the candidate for showing interest in your role and the company. You wouldn’t want them to show up late and scattered, so try and hold the same etiquette. 

• Engage in genuine conversation with the candidate rather than hammering them with situational questions. They are humans looking to be a part of your team! Find out why they are interested in the role. Let them know the essential skills that are required for the position and allow them to explain their qualifications and experience as it relates to the open role. Both the interviewer and the interviewee will have a much more productive conversation when both are comfortable and are able to openly converse. It’s hard to really get to know a person and their personality when the conversation consists of the routine questions like “tell me about your experience at,” or, “tell me about a time you…” I’m not saying you have to go into the depths of their entire existence, just enough to get a feel of who they are beyond what’s written on paper. 

• Give them a short tour of your office. Let them see where they’d be spending 40+ hours a week. Introduce them to other individuals in the office and give them a chance to ask questions. This will allow them to have a true sense of what the office culture is like. 

• Provide the candidate with a timely response. Don’t make the candidate wait for a week or two to hear back on whether they will be moving forward in the process. If they’re interviewing with your company, it probably means they’re interviewing other places too. Make it easy for the candidate to say yes! The reality is, the longer you make a candidate wait to hear a response, the lower they think they are on your list. They will then prioritize other opportunities because they feel that they are not a top candidate being considered for your open position.

As small businesses continue to increase in number, it’s more important than ever to understand the struggles so that they can not only grow, but grow successfully and profit from the people they hire. Any great football coach would take the time to recruit, train, and guide their players to get them ready for a successful and victorious season. Why should businesses be any different? 

These days, pipeline recruiting is proving to be much more efficient and productive than traditional hiring. One of the hard truths of running a business is never knowing exactly when one of your employees is going to say farewell. Much like having a business continuity plan in place to secure your company’s infrastructure, having a backup plan to fill certain positions will allow your company to keep on performing and stay balanced.

Often times, the way in which we try to connect with candidates and/or job seekers can be a bit hasty and forced, but pipelines act as the bridge between meaningful relationships and positive results. You won’t get a good result unless you put in the conscious effort and attention into a pipeline! 

Below are five reasons why the pipeline approach is so powerful and beneficial.  

Pipelining is a win-win for everyone. Talent pipelines are a great way to build rapport and to be intentional about getting to know candidates’ career goals, plans, and ambitions. They are two-way streets; the candidate needs to know as much as they can about the company just as much as the company needs to know about the candidate. Too many times we have gotten ourselves into, or have been a witness of people getting into roles only to find out they are either overly qualified, or are not qualified enough. With strategic pipelines in place, however, this risk can be mitigated, and dare I say nonexistent!

 Hiring the best candidate is faster and painless. Recruiting top talent is more challenging today than ever before. We are currently experiencing record low unemployment rates, which is great! However, it makes recruiting a lot more challenging. Companies are going above and beyond to retain their people, especially the best ones. That’s why proactively networking with passive candidates is essential. You are being intentional about reaching out to a potential candidate and expressing a sincere interest in learning more about the them and their skills. It’s a complimentary way of connecting with a candidate and the response rates are typically very high.

 The entire hiring process is accelerated. There’s a reason people start looking for jobs three months before they plan on leaving their current role, and a big reason is that the entire interview and hiring process can take forever. When roles are filled promptly after opening them and the new hire hasn’t been properly screened, you run the risk of hiring someone unqualified. The harsh reality is that this happens, but it doesn’t have to. With pipelines, the hiring process is accelerated, but the hard part of screening the candidate and making sure he or she fits the bill is over. By the time they are hired, they feel like part of the team because the relationship has already been established. 

Great for discovering talent that is still developing. Let’s say you found someone who meets all of the personal requirements to fill the spot you are recruiting for. She’s intelligent, sharp, and admires the company. She’s got a promising career trajectory ahead of her. The only problem is that the positions you mostly recruit for require individuals with 5-7 years of experience, and she only has 2-3. You don’t want to lose site of this great candidate do you? The obvious answer is no, so what do you do? Add her to your pipeline! Stay close to her, connect over coffee every six months or so. Then, when a relevant position opens up that aligns well with her skills and interests, the process is set in motion and the interviewing process begins! Think about how this can impact your time to fill! 

Lower turnover, higher retention. The traditional hiring process seems to rush into making a decision over the right candidate. With any open position, there’s an obvious need to fill it quickly. Often times the mindset is “fill the position, now!” instead of, “find the right person, now!” Do companies want to hire the same person 20 times (by means of continually refilling the position), or would they rather proactively network with 10 people over a 6-month period, where they identify a perfect fit? With talent pipelines, the fear of hiring, firing, and refilling the position 20 times is gone because the mindset is this:

 -    This is an important job. You are an important person.

-    We work to support you and your success, so we want to make sure we get it right the first time.

-    We don’t just hire anyone. We hire people like you.

When this mentality is in place, companies experience lower turnover and higher retention because these values are strong and put into action, not just nice words that sound good together.

 By proactively recruiting candidates and keeping the line of communication open, you can cut the hiring process almost in half and the uncertainties will be brought to light and mitigated. Honesty, integrity, and compatibility lie in the depths of the pipeline, and the great thing about them is that you can make them fit your company.