Each such byte focuses on a functional issue startups need to solve as they build their company, from idea to scale. In this edition, we speak about the recruiting strategies.
Jim Collins, celebrated author of the bestseller Good to Great writes, “Those who build great companies understand that the ultimate throttle on growth for any great company is not markets, or technology, or competition, or products. It is one thing above all others: ability to get and keep enough of the right people.” Hiring for a start-up or a small business is critical but most rewarding aspect of running a business. It can be very challenging too as small businesses have very specific needs, limited resources, and ability to attract the right talent.
Some of the biggest hiring challenges which faced by small businesses are:
- Competing with bigger businesses: Big brand names typically attract superior talent because of their brand presence and aspirational value of associating with a brand which goes with it. In some cases, they may also be able to offer better benefits in terms of compensation and other perks. They can also provide a more structured work environment. This is however changing in last few years as associating with start-ups is becoming more acceptable.
- Identifying the right Talent: Small business sometimes lack the resources and internal capacities needed to identify the right talent
- Talent Management Strategy: Small businesses often lack a holistic strategy in Talent Management. Business leaders may have little or no prior experience in Talent Management
The below recruitment strategies may help in alleviating the hiring challenges faced by small business:
- 1. Create your company’s Brand: There needs to be a strategic focus on brand building. Successful branding exercise is not only for attracting customers but also helps in attracting good quality talent. This requires communication of brand values cohesively across different platforms including social media, professional networking sites and blogs, business events, colleges, advertising and print media, job sites etc. The messaging on all these platforms should be consistent and relevant to the talent segment. Some examples include – your services/product, its values and mission, the management team, your client portfolio, work culture, policies, employee testimonies etc.
- 2. Focus on Referrals: Referral through Employees or known contacts is one of the best and the easiest way to hire. This reduces the hiring cost. Employees usually refer candidates who are likely good performers and may prove to be a good culture fit for the company as they would want to create a cohesive team to work with. They will be the brand ambassadors for the company when they refer openings to their networks.
- 3.Leverage a niche partner ecosystem: Identify partners (Recruitment agencies if hiring for niche skills, Job Portals etc.) who can collaborate with your company in sourcing the right talent from the talent pool. Having a partner who understands the requirements of your company well drastically reduces the time it takes to fill an open position. Leveraging bigger job portals for paid services may not be the right strategy as the postings may get lost in the sea of open positions. However, use of professional and social networking sites like LinkedIn, AngelList, Twitter, Facebook, are highly recommended.
- 4. A clear understanding of the Talent required – The company should be 100% sure about role they are hiring for, what type of skills and qualifications they are looking for in a candidate and how the company and the candidate will mutually benefit from the association. Cost of hire, Type of hire and what are the benefits of this hire should be analyzed and mapped.a. Cost of Hire will include Salary, Benefits, Cost of space and equipment, onboarding etc.b. Type of hire – Fulltime employee, Consultant, Freelancer, outsourced etc.c. Benefits – How the candidate will add value to the organization and in what time frame
Given the current shift towards digital work, freelancers and gig workers can bring in specific expertise and skills, while also helping to manage costs for the company which may not be sure of the long-term roadmap for such roles, early on.
- 5.Target Talent from similar companies Candidates coming from a similar sector will make it easier for them to get integrated and productive quickly. However, it does not mean that one should not hire from a large organization or a different sector as they might bring in a new perspective to the company. It is about finding right fit for a role and the right attitude that shapes the culture for your company.
- 6. Offer Relevant Perks:Perks are often a good means of attracting a diverse and talented applicant pool. Have policies which are employee friendly like Work from Home, work remotely from another location (if you are not getting talent locally or to relocate), flexible work arrangements, training and certification options, great benefits etc. These perks not only need to be offered but also communicated appropriately.
- 7. Assessment Process: An appropriate assessment process is essential to ensure the candidates have the right skills, and attitude to suit your team and job requirements. Include case studies, written assessment as needed. Do not be pressurized to hire if the candidate has come from a known source. It might be better to keep the source of the candidate hidden from the interviewer. Use technology like zoom, google hangout for initial telephonic/webcam interviews and have only the final interview as face to face. Study the candidate’s CV beforehand and discuss interesting or key highlights from the resume. You may ask about non-work-related interests also to understand their behaviors and attitudes but make sure you are tuned to the candidates’ comfort.
- 8. Candidate experience –Ensuring a great candidate experience with company regardless of the candidate is joining or not, selected or not. is essential for creating positive brand image. Create a desirable job description, update on the status immediately and if possible, give feedback, provide information about the company, and about the interviewer during each conversation, get to know the candidate, note key points or observation you have during each conversation. Ensure quick turnaround time and personalized experience. Always be honest and open and communicate your company’s best qualities to candidates.
- 9. Post Offer:Make sure you continue to connect with the candidate if the notice period is long. Keep the candidate engaged by updating on company news, sharing reading materials, recommend online training applicable for the role/Company. Ensure candidate onboarding is well planned, with a maximum of two days for onboarding and overview sessions with different teams. Ensure candidate’s work-desk, equipment and other formalities are arranged and closed on day 1. Introduce the candidate to the team personally or over email. Ensure the candidate feels welcomed and have follow-up connects with the candidate for about one- two months to confirm they are settled in well.
In summary, there is no one size fits all recruitment strategy. The strategy would vary based on various factors like industry, location demographics and the available talent pool etc. Being a small business does not mean you cannot hire great talent, but it does mean you need to develop a good recruitment strategy. To quote, Laslo Bock, Sr. VP People Operation Google, writes in Work Rules, “ Superb hiring isn’t just about recruiting biggest name, top sales person or cleverest person, it’s about finding the very best people who will be successful in the context of your organization and who will make everyone around them successful”. Happy Recruiting all of you! Let us know if you have questions or feedback. Reach out to us on info@caspian.in.
References to links that may help you:
1. https://themanifest.com/in/branding/agencies
2. https://resources.workable.com/tutorial/best-recruiting-assessment-tools