Small businesses assume a pride of place in many economies. In the US, they account for 99.7% of all businesses. Also, 3.7 million small businesses made up 75.3% of all private-sector employers in 2013 and provided 10.8% of the private-sector jobs.

While decline in customer spending, the cost of health insurance benefits and economic uncertainty are considered by the National Association of Small Businesses as top 3 challenges of running a small business, another significant problem faced by small businesses is that of hiring.

Finding the right workers is commonly considered an issue but it also doesn’t help that business owners make a number of mistakes while trying to hire. It’s in the context of this problem that this article seeks to make entrepreneurs aware of some common but often ignored facts related to hiring.

#1. A Lot of People are Scared of Startups:

Several studies have been undertaken to ascertain factors contributing to job satisfaction. Unfortunately, necessities like mouth-watering compensation, attractive fixed salary and job security are considered lacking in many startups. This decreases trust in startups’ viability and consequently leads to disinterestedness on the part of skilled prospective employees.

To attract the best talents, therefore, you should deal with the fact that not everyone will make herself available for hire by your startup due to the foregoing reasons. It’s important to make your organization come off as viable and set for business in the long term. Try to avoid the common problems that beset new businesses in their early years.

#2. Big Names aren’t Always the Best for your Business:

Granted, employees who have worked for big companies most likely possess the required skill set you need for your business. But it isn’t always reasonable to jump at every big name you encounter as not every one of them will be a perfect fit in your business.

One feature of large companies is their well-defined structure: there exist established ways of doing things which make employees’ activities and mentality streamlined towards rigid expectations. While some people thrive well under such structures, others do not.

Consequently, while sourcing for big names, you may be at risk of hiring people who tend to be unproductive in and dissatisfied with a business that doesn’t offer the rigid organization and structure that large companies provide.

#3. Location Shouldn’t Matter When and Where it Doesn’t Need To:

Thanks to the internet, the world has become a neighborhood; today, it’s not uncommon to find businesses outsourcing jobs to remote workers whom they haven’t previous experience working with.

Many reasons exist for a business choosing to outsource jobs to remote workers. One, is that the best talents aren’t always within one’s reach due to geographical constraints. It therefore makes no sense to allow location stifle one’s business especially when communication over long distances has been eased by the internet and work-flow can be facilitated by computer software.

In other words, competence cuts it for remote employees, and businesses that outsource ‘outsource-able’ jobs to competent remote workers when there isn’t a better option do themselves a great service.

#4. Employee Referrals are Most Times Beneficial:

Employee referrals involve allowing employees to engage in the recruitment process by offering them the liberty to suggest competent candidates for jobs. Referrals are touted by a report on social recruiting to be one of the best ways to attract the best talent.

One of the benefits of employee referrals is that they significantly cut recruitment costs. Also, an employee referral program may facilitate the readiness of the right people to work for you, as candidates will most likely be friends, family or former business associates of your employees and must have heard good stories about your business.

Successful employee referrals can also reduce the risk of employee dissatisfaction, disloyalty, and job-hopping.

5. Difficult Entry Requirements Might Chase Away Competent Personnel:

Raising the bar too high might frustrate your chances of recruiting some very good people. For example, you’re a software company trying to hire only Java developers who have Computer Science degrees and have worked 10 years programming in Java. With these requirements, chances are high that you’ll miss out on some genuinely good self-taught developers who may be better at problem-solving and have spent perhaps fewer number of years working tenaciously in such capacity. Besides, quantity may not always translate to quality, for it isn’t unusual to find people who worked several years in a niche but aren’t quite worth their salt.

It’s, therefore, important to strike a balance while presenting prospective employees with entry requirements.


Hiring the best talent is one of the most important steps to building a successful business. Therefore, efforts must be made to not hire incompetent, insincere people as a lot of can go wrong in the process. Get it right at the outset.