Hiring new employees is a necessary challenge when it comes to an expanding business. You can’t do all the work yourself, and you need others to help you grow. You could also not have all the skills necessary to run the business. You might train yourself, enrol in more education – but that can take years and your business might not wait that long.
There are also time constraints. You are unlikely to have enough hours in the day to do all the tasks necessary to manage your business. Therefore, hiring new staff will become your only option.
The hiring of new staff isn’t always a smooth operation; being prepared is essential. Here are five challenges you are likely to face when hiring new employees.
When you are looking for staff, you will want staff who are qualified and experienced so they can complete the work effectively. The problem is they are rare, especially those actively looking for a new job.
You also might find that candidates embellish their resumes. Research by CareerBuilder found that 56% of job seekers did this – making it harder to determine who is a great potential employee and who is not. Only with proper checks can you really determine who is telling the truth.
While qualifications and experience are important, it is more critical to find someone who has the same ethical stance as your company. For example, you don’t want to employ a person who believes everything has to be organic, if you don’t use organic materials in your production.
Not having someone who is aligned with your corporate culture only creates disharmony in your business and this can really affect your business’ productivity and the quality of work.
When you do find good staff, it is important to hold on to them. More than one company has faced significant troubles after the loss of important members of the team. Many business leaders think that money is the solution; however, research has found that there are other benefits that employees value just as much, if not more – they include:
Therefore, look at ways to create more of an enticing workplace environment that employees do not want to leave, and use this as a way to retain staff.
While you might hire the person with the right qualifications and experience – they still need training. It isn’t just about the production that matters; it’s your company’s health and safety, HR processes and your IT system that will need to be taught to new employees.
This takes time and resources, and it can sometimes take six to twelve months before a new employee is fully competent in their new position. During this time, there is a loss of production and lower returns on the investment but providing proper training can reduce the negative consequences of this.
This is probably one of the greatest overlooked dangers to small and medium businesses. While people think of theft coming mostly from the consumer side; internal theft is a serious problem. Theft comes in all sorts of forms including:
Research has shown that employee theft accounts for 7% of annual turnover and 75% of employees have admitted to stealing from their employer at least once. Also, 33% of all businesses that go bankrupt is due to employee theft.
Hiring new employees is important if you want your business to grow. But it can be troublesome. Ensure you are ready for taking that step and that you are prepared for all the challenges that can arise from hiring new staff.
What challenges do you face when hiring new staff? Have you got any horror stories that others can learn from?
Let us know in the comments below.