Hiring isn’t just about filling a role. It’s one of the biggest financial and cultural decisions you can make for your business. For small and medium enterprises (SMEs), the impact of a single hire can ripple through every part of your operations.
With the stakes far higher than just filling a vacant role, a successful hire can propel a company forward, while a misstep can become a costly lesson in time, morale, and finances. According to Employment Hero, the average business already spends nearly $8,000 on recruitment for a single position, a figure that doesn’t account for the hidden costs of a bad fit.
With so much on the line, avoiding common pitfalls is crucial. Based on the experiences of fellow founders and the advice of recruitment experts, here are the most common mistakes and how to build a smarter hiring strategy.
Many business owners learn the hard way that a promising candidate doesn’t always translate into a successful employee. It’s essential to look beyond the surface and understand these common, high-stakes traps that other founders have fallen into.
1. Focusing on Skills Over Attitude
It’s a common trap to hire someone who looks perfect on paper or has great technical skills, only to find their poor attitude or communication style disrupts the entire team. A polished CV doesn’t show how a person will actually fit into your company culture and daily workflow.
2. Not Testing for Real-World Pressure
The person you meet in a calm interview setting isn’t always the same person who has to handle a real crisis. Many owners make the costly mistake of hiring someone who interviews well but ultimately can’t handle the actual high-pressure demands of the job when they arise.
3. Hiring Under Pressure or Hiring Friends
Feeling desperate for help can lead to rushed decisions, causing you to overlook major problems and hire the wrong person. A similar mistake is hiring a friend, which can make it very difficult to transition to a boss-employee relationship, potentially damaging both the business and the friendship.
4. The Founder’s Trap: Thinking No One Can Do It Like You
A subtle but common mistake is a founder’s belief that no one can do the job as well as they can. This mindset often leads them to hire less capable people, which holds the business back from its true potential and prevents real growth.
Finding the right person for your team doesn’t have to be complicated. Instead of making it a guessing game, follow these four simple rules for a much better hiring process.
1. Figure Out What You Actually Need Done
Before you even think about a job title, grab a pen and paper. Make a list of all the tasks you’re currently struggling with and the problems you need solved. You might realise you need someone who can do a little bit of everything, not just one specific thing. Hire for the problems you have, not the title you think you need.
2. Ask for Real-Life Examples, Not Just Answers
A CV only tells you what someone has done in the past. To find out how they actually work, ask for specific stories. Use questions like, “Tell me about a time you had a tough deadline. How did you handle it?” This tells you more than any list of skills. When checking references, try to talk to a former coworker, not just their old boss, to get a different and very honest perspective.
3. Look in More Than One Place and Be Patient
Don’t just post an ad on one website and hope for the best. Share the job opening in different places, including with your own professional network, to reach more people. Most importantly, don’t just hire the first person who seems okay. Experts say you should wait at least two weeks to gather a good group of candidates before you start interviewing.
4. Be Honest About Your Small Business
Working at a small company is different from a big one. People often have to be more flexible and handle a variety of tasks. Be upfront about this from the very first conversation. You want to hire someone who is excited about the reality of working on a small, fast-moving team, not someone who will be surprised by it.
As this guide shows, hiring is a major undertaking — it’s time-consuming, expensive, and full of potential pitfalls. But what if you could access the expert skills you need without the entire recruitment process?
Outsourcing can be a significantly more cost-effective and efficient solution. You save on the initial recruitment spend, plus the ongoing expenses of salary, benefits, and training. It also saves you an immense amount of work. Forget sifting through dozens of CVs, conducting multiple rounds of interviews, and navigating the complexities of payroll. You get immediate access to experienced professionals who are ready to contribute from day one.
Hiring can be a massive headache and an expensive process. If you’re interested in trying out outsourcing and spending more time growing your business, we can help.
Contact us for a quick, no-obligation chat to explore how our services can save you time and money.
Source: Tailored Accounts
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