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Ways in which small businesses can reduce risk when it comes to hiring new employees

Ways in which small businesses can reduce risk when it comes to hiring new employees

The risk factor in hiring the team is an elemental aspect, which is to be addressed through proper implementation of the process.

Hiring is the most crucial and a critical part of formation of any organization. Success and profit of a venture rests on its employees and hence, the process of hiring human resource is imperative. The risk factor in hiring the team is an elemental aspect, which is to be addressed through proper implementation of the process. The Human resource team must be apt enough to hire dependable employees to the venture. Else, the risk can be devastating, especially for small ventures. The process of hiring comprises of various techniques of evaluation of the candidate. Improvising such techniques helps for better selection. However, most of the times such traits do not produce better results. The whole approach to hiring needs to be analyzed and reformed. Here are a number of hiring tips, which will reduce risk in recruitment of new employees in small business ventures.

Intensifying the process of interview

To intensify the interview process is the easiest way to ensure a dependable recruitment. In small ventures, most of the times, the CEO finalizes a candidate after a short interview process. No formal interview rounds are conducted as it is in large organizations. Interview process conducted by large companies consists of several rounds such as HR, Operational, Psychometric, group discussion and so on. On contrary, small companies do have such processes and candidates are evaluated through random techniques. The process is highly inefficient to make out the candidate properly. The person may have right skills but may not possess the right mindset for the job. While hiring candidates through a single interview, many a times, intuition plays a bigger role. This leads to larger risks. Small companies should intensify interview processes by engaging at least three or four employees from outside the hiring department to evaluate a candidate.

Offering a probationary period

New recruits in small companies should be kept under a probationary period. A month is enough for probation during which, skills and attributes of the candidate can be evaluated properly. During this time, the company may keep a number of candidates on pipeline who can substitute the former if he or she appears to be incompetent during the probationary period. Employing such technique, risk of hiring new employees is reduced to a great extend, as the normal flow of operations are not hindered. Evaluating a candidate at work provides better insight about the candidate. During this time, the candidate will also have an opportunity to learn about the office environment and evaluate his or her compatibility to it. Job satisfaction comprises of several facets apart from core responsibilities and income. Work culture plays a crucial role in the prospects of job satisfaction.

Checking background and reference of candidates

During probationary period, the company may perform a background check of the candidate. Reference provided by the candidate can be checked thoroughly. Checking background of the candidate will offer a good insight to the employee. Verification of educational documents and information related to previous job is crucial to ascertain authenticity of the candidate. Reference checking is an effective way to know about performance of the employee in previous jobs. Colleagues and specially the manager of candidates should be contacted to get a gist of their previous performance. Background checks should be considered as a part of hiring process. This is employed by large corporations, but to reduce risk in hiring, small companies must emphases on the process.

Using Referrals of existent candidates

Since, the current employees of a venture is the strength of an organization, they can contribute substantially in the hiring process. Using employee referrals is an effective process of hiring good candidates. Current employees are well acquainted with work environment and culture of the organization. When they refer somebody, they always take in account the compatibility of the person to the work environment of the company. Therefore, when candidates through employee referrals are hired, they become dependable employees. On the other hand, it is an efficient way to form emotional capital of the organization, which further contributes to stability and well-being of the enterprise.

Making expectations of the employer clear and upright

The candidate must be made aware of the actual job responsibility while in the interview process. Most of the times, communication gap both intentional and unintentional, becomes the bone of contention. Every candidate has a specific perception about job roles. Especially, candidates with experience may find it harder to cope with new set of responsibilities, which are different from their previous ones. Even while switching to a similar process, huge differences in operations may exist. The gap between expectation and reality poses are greater threat to performance as well as stability of an employee. Therefore, to reduce the risk factor of new hiring, employers should ensure that the candidate is certain about the roles and responsibilities involved in the new job. In addition to this, an introduction to the work culture and office environment helps the candidate to prepare for the job.

(Author Satya D Sinha is CEO, MANCER Consulting)
first published:July 30, 2015, 15:27 IST