Most small business owners are not human resources experts, so dealing with hiring/staffing issues is often difficult. Additionally, most tend to gravitate toward what they enjoy, and for business owners that’s usually working with clients, generating new business and developing personal relationships. This can sometimes leave internal practice management issues neglected, with employee relations being perhaps the most overlooked area.
Here are some of the mistakes that some SMB owners most often make when they hire new employees:
Not knowing or understanding the role. This is probably the biggest hurdle, but it is the easiest to avoid. It takes firm owners asking themselves the tough strategic planning and vision creation questions which they sometimes put off. Owners need to have a good idea of where they want to end up so they can shape how they want professional staff to help get them there. They need to ask: Will more of the same get me where I want to be? Or is the new hire going to bring with them the introduction of a “fresh air” approach within the organization? And, am I willing to accept the changes that will bring on? Often, firms are reactive and hire backward due to an unexpected increased workload and operate in the “just get me somebody” mindset. This type of short-term thinking can lead to bigger problems further down the road. In other cases, when business owners think they have an idea of what they want their new hire to do and how they want the new position to look, despite what may be to them a clear internal perception, they do not communicate it well or fully to the candidate.
Assuming too much. This is a symptom of the first pitfall. Owners sometimes assume the new hire knows what the position should entail and the new hire assumes the owners know what they want. All of this assuming is a recipe for disaster because the relationship never gets started off on the right foot. Candidates should have a good idea of what type of role they think they would perform the best in, but the buck stops with the owner to have a strategic vision for the firm and a specific vision for where and how the new candidate fits. Further, this vision must be consistent, and not reactionary or constantly changing.
Little to no ongoing communication/mentoring. This is a direct effect of assuming too much. Communication is critical, especially during the on-boarding stage and directly after. Business owners are usually hiring someone because they are beyond overloaded and therefore can’t spend the appropriate time getting the new hire up to speed. Yet for many top talented individuals, mentoring is the primary reason they choose to join a certain firm. They deeply desire an experienced mentor that is willing to spend the time to teach them the side of the business of which they’re unaware or haven’t fully experienced. In some cases, this is why many gravitate toward smaller firms and sometimes take less pay.
Throughout the mentoring process, regular communication is imperative. Always let your new hires know where they stand. Younger employees are used to constant and instant communication through texting, MySpace, Facebook and Twitter. It would almost be impossible to over-communicate with your new hire from this social genre. If you don’t deliver on the mentoring, you lose a crucial chance to help build firm loyalty with your “newbie.” If you know you are not a good mentor (and not all of you are), find someone, or work out another process for training and working closely with your new hire.
No involvement in the decision-making process. If business owners see their new hires as being part of the firm long-term, then these employees should be included in the firm’s decision-making. Owners don’t necessarily have to use a new hire’s suggestions, but a new hire that knows he or she is heard will likely find more satisfaction and show more loyalty. Follow the lead of some of the larger public firms, which bring all of their new hires together to get their unbiased, untainted, fresh ideas and fuel creativity and company innovation.
Viewing candidates as “Mini-Me’s”. Some firm owners try to make new hires exact replicas of themselves. From the outside looking in, this often makes little sense, but it is still attempted frequently by small business owners. Ideally, you want to minimize overlap and maximize talent over a broad set of areas, especially in a small firm. Resist the urge to force your skill set template onto the new hires even if they are receptive. Frustration can build on both sides when this approach is tried. Your firm will benefit most if your new hire has a skill set that complements yours, not one that clones it.
Not providing challenging and meaningful work. New hires will have a longing to pursue meaningful and challenging work so that they can add value to a firm. Give them projects and increase the level of responsibility as they prove themselves. It is up to the new individual to prove his or her skills, but it is the manager’s job to push new hires out of their comfort zones and help them avoid stagnation. Keep in mind that part of letting them try different things to build their experience means letting them make mistakes too. We all learn from failure, we grow from failure, we innovate from failure-if we don’t fail, we don’t grow.
The feedback trap. Avoid giving only negative feedback and disguising it as constructive criticism. Consider how you give your clients feedback. This is a great way to approach things with your new hire. At the onset of a great client relationship, you provide honest feedback about the positive aspects of the situation and the areas that need the most focus. It shouldn’t be any different with new hires. Consider the different ways you communicate with different clients. You will need to find the communication and feedback style that works with your new hire. Consider personality profiles or other behavioral surveys to understand the best way to get the most out of your new hire. Keep in mind, in this highly transitory society many of new hires may be from diverse backgrounds and cultural environments. So finding the best approach to relate, communicate and manage them will save you time and headaches. Plus, don’t forget feedback is reciprocal. Don’t be offended when they give you honest feedback about your performance-it can only make your firm better.
Lack of a career path. Small business owners sometimes struggle with the transition from hire mode to post-hire mode. This is similar to politicians who are always in getting-elected mode even after securing office. It is prudent for owners to think to themselves, “OK, they are hired, now what do I need to be doing, other than signing a paycheck, to give them opportunities for career progression?” Most new employees are not going to be satisfied staying in the same position for their entire career. Furthermore, if you cannot produce a career track or describe how one might look in your firm, be ready to lose out to other firms that can.
Not sticking to your guns. If you don’t have the first issue above figured out, an accurate job description can’t be developed. If you don’t have an accurate (written) job description, it is virtually impossible to ask the right interview questions. Plus, without these two items, job performance metrics can’t be developed. Resist the temptation while interviewing to say to yourself, “I really like that person and they could work here,” if their characteristics don’t fit your job profile. Stick to the position you are hiring for! And that same vein, don’t change your expectations or perceptions of the new hire’s reason for coming on-board to something they didn’t sign on for after they’ve joined your firm.
For those that have not ventured into hiring yet, you will most certainly encounter something on this list at one point or another during the process if, or when, you take the plunge. With some awareness, simple planning and concerted effort you will be well on your way for a smooth integration with your new hire. A small up-front thoughtful investment of time and money in human capital, and an on-going consistent follow through, will pay big dividends later – for you and your new hires.
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