5 Small Business Hiring Challenges and How to Overcome Them

By Melanie Alvarez 

Small businesses continue to be incubators for innovation and employment growth during the current recovery. While these challenges may vary from inexperience to size and lack of resources, hiring and employee sourcing is one of the most important factors that can help the company grow in the succeeding years. After all, employees are the lifeblood of an organization who serve as the pillars of your business success in the long run.

There are a variety of reasons some fail in establishing their small business venture in the industry. Factors such as struggling with hours and lack of company strategy and structure may come along the way, but one of the main issues is that a lot of new businesses haven’t done a lot of hiring.

In fact, Wasp Barcode’s annual State of Small Business Report says that 50% of small businesses say hiring new employees is the top challenge they face in 2017. While it may seem simple on the surface, hiring a perfect employee for the job can be overwhelming and challenging at the same time.

Here are a few common small businesses hiring challenges and ways to address them.

1. The Business Climate

One of the biggest hiring challenges small businesses face is competing with large organizations in acquiring top talent. Aside from the fact that bigger companies offer a wide variety of benefits and salary advantages among competitors, these businesses have also established a well and reputable image in the industry making it easier to attract talents.

However, keep in mind that bureaucracy in small businesses is less compared to larger organizations. This also provides more growth potential, which is exactly what many candidates look forward to in applying for a job.

2. Wearing Too Many Hats

Small businesses tend to struggle with time management due to the number of employees working for them, which result in employees getting a handful of tasks that can go over their job descriptions. Such situations tend to address tasks all at the same time, reducing the quality of their outputs and lead to employee dissatisfaction.

As you grow your team with the right people, you’ll have help putting out these possible scenarios and designate the appropriate person for each task. In this way, expenses can be cut to a minimum, and time is spent wisely.

Getting a recruiting firm for hiring expertise can help out in maximizing opportunities and turning them into future assets of the organization.

3. Little to No Experience with Employee Management

Since the business is relatively small compared to other organizations, many small businesses suffer from inexperience regarding talent management. This might be something that organizations don’t consider a priority and can damage their business processes eventually. In fact, the cost of a bad hire is as bad as not properly utilizing good hires.

Employee management is just as important as all other factors that make up an effective business process, as well as recruitment. With this, it’s easier to build a team comprised of people who don’t need to be micro-managed to be successful.

4. Lack of Training and Learning Programs

When an employee gets to work in a large business, corporate-provided training and practices are made available as part of their employee management. But for small businesses, on-the-job learning depends mostly on the seniors or their managers for the reason that there are a lot more expenses to prioritize than these training.

Creating a mandatory learning session for the team once in awhile can help employees learn from each other and promote teamwork. Schedule training during the business’ least busy hours. This can help prevent frustration for you, your employees, and your customers at the same time.

5. Risk of Selecting and Keeping Employees

When an employee decides to leave or just doesn’t meet the company’s requirements, all of the time and resources that went into their recruitment, hiring, and training would mean nothing. There’s no perfect science to assure that your new hire will give back a significant return on your investment.

Choosing a candidate that best fits your company’s culture and values are the best way to ensure a good working relationship with their new colleagues and the environment. This can help prevent a high turnover rate that can actually hurt your business. All of these boil down to providing an effective recruitment process that goes a long way for your company.

As you grow your team and get the right people to work for your company, risks are put to a minimum and growth is sure to come your way. Investing in a recruitment process that works for your company, starting with talent search, keeps your business on the right track. This allows you to work on the most important thing you need to focus on while building your business

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Melanie Alvarez

Melanie Alvarez provides fast, convenient advice to high-growth, innovative teams with specialized recruitment requirements in the Philippines. She also connects top-level candidates to Manila Recruitment’s placement services, through social media and digital channels.


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