It comes as no surprise that small business owners wear many different hats when starting out: manager, accountant, and even human resource director.
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A big piece of that success is ensuring the individuals selected fit with the chosen company culture.
Entrepreneurs transition from raising capital and finding the right business location to hiring, with the goal of finding individuals who will make meaningful contributions to the organization.
“Hiring almost seems to take on more importance in the early days – when the foundation of the organization is being created,”
“I was fortunate to have found the right staff – people who have continually gone above and beyond to invest in our work and in our patients, but I know it is something that causes stress for many entrepreneurs, particularly when they are first starting.”
There are intricacies to launching the business and hiring employees “the Canadian Way” as outlined in this article, which notes,
“Great importance and focus should be given to the hiring process because the people hired will be a direct reflection of your business.”
At the end of the day, any hiring decision is an educated gamble – a leap of faith in the individual being considered, based on evidence provided of past job performance.
There are myriad theories about how best to go about the process, prompting the Harvard Business Review to note in a recent article:
“Businesses have never done as much hiring as they do today. They’ve never spent as much money doing it. And they’ve never done a worse job of it.”
The article cites the antiquated systems of position and prospective employee analysis including a “WWII era” practice of conducting a job analysis, doing a job evaluation, then advertising and interviewing using a slew of tools ranging from skills, personality, and IQ tests as well as a reference review.
That sort of hands-on approach is still utilized by some small businesses, but long gone in the large corporate world.
Now, technology and outsourcing of hiring has completely altered the hiring process.
The recruiting and hiring function has been eviscerated. Many U.S. companies—about 40%, according to research by Korn Ferry—have outsourced much if not all of the hiring process to ‘recruitment process outsourcers,’ which in turn often use subcontractors, typically in India and the Philippines, per the HBR article.