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Hiring Employees for Your Small Business

One of the most time-consuming tasks a small business owner faces is to fill job openings within his or her organization. And, since doing it well requires patience and good judgment, the entrepreneur often sees the process as a distraction from the “more important” demands of managing day-to-day business operations.

Yet, choosing and retaining the right person or persons can seriously affect how your business operates – and how it grows. Rushing into the wrong decision can set the scene for future problems.

Seek out eligible candidates. Although you should not ignore the traditional resources such as newspaper ads and introductions arranged by current employees and other business owners, there are many unconventional sources you may have overlooked, such as:

  • Local college recruitment offices (and sometimes individual professors) can often recommend talented, soon-to-graduate, persons. Educational institutions sometimes carry classified advertising in their newsletters – often at no cost to the business owner. Trade associations may also do this, with the additional advantage of targeting people familiar with your industry.
  • Your own business network is another good source. You should make it a practice to keep an eye out for good candidates, even if you don’t have a job opening right now or expect to have one soon.
  • If you decided to obtain the services of a professional recruiter, you will incur costs, but the time you save may justify the fees.

List the education, experience and personal qualities required for the open position. Begin by developing an accurate job description, and use it as a basis for reviewing the resumes and conducting interviews with individuals you are considering for the job.

  • You will want to judge not just the job requirements, but also whether the candidate is suited to these tasks.
  • To measure the candidate’s aptitude to work in an entrepreneurial environment, develop a set of unconventional questions to generate information about his or her judgment, willingness to take risks and make decisions – all of which are needed to thrive in a small company.
  • You can use an interactive hiring tool from American Express Small Business Services to develop an accurate job description, an analysis of personal and work-related traits, and to create comparative worksheets on various candidates.

Craft an interview that will help you compare candidates. Each interview should bring out the qualities most important to your company – as you search for an individual who will fit in and complement your business culture.

July 12, 2001
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