You’re overworked, under-slept, and dying to take your business to the next level. It’s time for one of the most exciting, and daunting, moves a small business can make: taking on staff. The right person will help your business flourish, but the wrong one will cost you time, energy and money. So how do you do it?
Finding the candidate
Graham Broe is co-founder of Broadstone Resourcing, a recruitment agency specialising in finance. He often recruits for SMEs, and considering his own company has just a handful of staff, he understands how important those early hires can be.
“Recruiting for a small business is hard, there’s no way around it,” he says. “You’ll often meet superb individuals who can do a few things brilliantly. But in an SME you need people who have a fantastic combination of skillsets.”
Facing such a tall order, Broe says the most important thing is to give yourself time. “We get a lot of requests from businesses saying they needed someone yesterday, but even a recruitment company can’t pull rabbits out of hats”, he says. “Don’t cut corners, because the amount of time you give to the recruitment process will directly correlate to the quality of applicants you attract.”
So where should you be looking? Broe recommends casting a wide net by listing your job advert on credible and widely-read job sites, as well as sector-specific ones, while also using social channels such as LinkedIn.
Making the most of personal networks and chance encounters can be a successful tactic too. When Claire Burrows, founder of the footwear line Air & Grace, won startup investment, her first hire was found at an industry event. “I met my current [and only] member of staff at a pop-up event”, Burrows tells me. “She said she loved what I did, and asked how to get involved. I admired her gumption and thought, ‘this is exactly the sort of person I need’.”
Bukky Beatrice, founder of cleaning company Yellow Gloves, also says that it’s important to meet people via informal channels, even if that means spontaneously approaching them. “I started off using places like Gumtree and then progressed onto placing adverts in shops, which has proved quite effective”, she says. “I also look out for people on public transport that I think are cleaners and give them my card. There are certain tell-tale signs – bleach on clothing, and travelling at certain times of the day such as early in the morning.”
The assessment
Burrows’ experience highlights how important first impressions can be. But hiring on personality alone can be risky, says Broe, so you need to make sure you have a strong assessment process in place.
When shortlisting CVs, Broe recommends speeding up the process by deciding on key “features” that candidates must have – such as academic qualifications, professional qualifications or previous experience. “Achievements” are the most important thing to look for, but be wary of candidates that exaggerate.
When it comes to the interview, Broe says employers tend to look for “chemistry” and “communication skills”, but this shouldn’t be the only decider. “Being nervous isn’t actually a bad thing”, he says. “But there’s no excuse for not being prepared. A lot of people rock up to an interview thinking their charisma will carry them through. Having confidence is important, but look for someone who understands the job description and can demonstrate why they are passionate about working with you.”
Does the shoe fit?
So you’ve done the interviews, checked the references, and it is time to pick who you’ll bring on board. But how do you know if you’re making the right choice?
Some say knowing if a person will be a long-term match for your company comes down more to their attitude than their skills. This is a view held by Lawrence Jones, an MBE-awarded tech entrepreneur and founder of UKFast, an IT hosting and colocation company. Since 1999, his business has grown from being a “two-man band” to having more than 200 staff. He says that finding people who match his company’s “core values” is the most important factor when hiring.
“Skills can be taught, whereas attitude is ingrained”, he says. “Every business should write down the values that are important to them. For us it’s being dynamic, innovative, supportive, professional and passionate. When we’ve recruited for people who share these values, it’s worked out. When we deviated from them, it didn’t.”
Jones takes this value-assessment seriously, having every candidate complete a psychometric test to gauge their behavioural reasoning and personality (there are free and paid-for tests available). He also recommends taking time to chat with candidates you’re serious about outside the office environment. “Richard Branson is great at this”, Jones says. “He will never get to know someone just by sitting down for a meeting. He’ll take them out for a walk.”
A long-term plan
Of course, finding a great candidate is one thing, but if you have to re-hire again too quickly, then it can be very costly. That’s why retention is just as important as finding the right person in the first place.
For Burrows, this means being engaged in her employee’s development: “As an employer I need to be thinking about whether this is the right job for them, not just whether they’re right for me. I have a semi-formalised feedback process in place with my assistant so that I can help her grow. We keep a list of things she wants to learn and I try to cover them.”
“You need a development plan for everyone you bring on board”, agrees Jones. “Where do they want to be going, and how you can help them achieve that? If you don’t do this, you’re going to lose great people.”
Meanwhile, Beatrice says that becoming “a better leader” was the secret for her company. “Staff will emulate you”, she says. “The more that I developed as a leader, the higher my staff retention level.”
When hiring your first employee, also bear in mind that you’ll need to insure. Deborah Holland, commercial director at business insurance broker Simply Business, explains: “If you intend to take on employees, contractors, casual workers or temporary staff, you’re required by law to take out employers’ liability cover. Without it you’ll put your startup at risk if someone is injured or becomes ill because of their work for you.”
Content on this page has been produced by Simply Business, the UK’s biggest business and landlord insurance provider, and sponsor of the supporting business growth hub.