When it comes to hiring employees what do business owners value more – experience or fresh ideas? In other words hiring experienced employees or young ones? Both can be useful in their own right. Experience can help avoid mistakes that someone would make when he doesn’t quite understand all nuances of business. On the other hand fresh ideas are the lifeblood of any business. Without them businesses will not be able to compete in this hypercompetitive world. Many business owners are on the fence about hiring young employees because they think that they are not quite reliable. They tend to make mistakes hurting the business in terms of lost customers and sales. However, as I will discuss below hiring young employees does have its advantages.
There are two sectors of the economy that are supposed to be impervious to unemployment – healthcare and information technology. Tech jobs are supposed to be a constant employment source given the proliferation of mobile computing and the growth of cloud computing. The rise in technical schools, technology boot camps, and IT certifications makes it seem as if the field of technology is only on the upward path.
Overall profits reported by technology companies in the last few years also indicate steady growth in information technology. While not moving as fast as the dot com bubble of the 1990s, industry earnings doubled between 2008 and 2012 and reached over $182 billion in 2012. All predictions had previously indicated that 2013 would also see growth. The forecast was for 7 to 10 percent growth for the entire industry. So many were surprised in 2013 when powerhouse companies such as IBM, Cisco, and even Zynga laid off thousands of workers worldwide. The reasons cited were lack of growth, falling stock prices, a need to restructure, and shift to focus on core products. Two startups blamed the market, stating that buyers weren’t ready for their offerings.
Read on to see the worst offenders in IT job losses and the reasons given by the companies.
Finance is one of the most sought after and lucrative career paths for many business school students. It is estimated that almost 30-40% of any graduating class in the business school graduates with a focus on finance. When you think about it the reasons are not too hard to find. The demand for graduates with a finance degree is never going to diminish, except for the unusual dip that was experienced after the Great Recession of 2008-09. These finance experts are needed by all types of companies in all geographies. Finance is an incredibly broad topic to study, yet those who graduate with finance degrees typically stick to one of two career paths – accountancy or investment banking.
So you’ve put out a job advert and ended up with a pile of CVs on your desk. Great, but now you face the daunting task of whittling down the candidates to three or four to call in for an interview.
A standard CV is maximum two pages long and only provides an outline of the candidate’s skills, experience and qualifications. Although this is useful when you have a lot to get through, it also makes it difficult to gauge person’s ability, personality and suitability for the role. So how do you decide who to invite for a job interview?
Any small business owner who has tried to find employees to fill open positions can tell you how difficult it is to find good employees. Despite all the talk about high unemployment and difficulty people are having to find jobs it is also true that there are number of vacancies small businesses have that are going unfilled because they cannot find qualified employees. This situation will only get worse as economy improves and more and more people start finding jobs.
Many small business owners make the mistake of assuming they can’t afford to hire a recruiting firm. In reality they cannot afford not to retain expert assistance when it comes to expanding their labor force. Not only can busy small business owners save time and money, but they can also be relieved of a stress by delegating recruiting to the professionals who can provide qualified candidates both quickly and efficiently.
Recruiting firms help small businesses in multiple ways as shown below.
There are few decisions as important as hiring employees when running a small business. Hiring the right person can take your business to new heights. On the contrary, it doesn’t take long for the business to go in the ditch if a wrong person comes onboard. After all, all businesses, large and small, are largely dependent on their employees to keep them going. The owner or the manager alone cannot take care of everything.
Attrition remains a big problem for all small businesses. It is not surprising to find replacement of the entire workforce within a year. Many small business owners feel as if they are in the constant hiring mode – advertising, interviewing and onboarding employees. How can you expect to do rigorous job when you are always in the hiring mode? However, taking right steps early on and spending extra effort in finding and retaining good employees can pay off in reduced attrition rate, taking care of the nipping the problem from the bud. In an earlier post, I discussed 5 things small business owners must do when hiring. Here we will look at the corollary. What are the traps small business owners should avoid to ensure they don’t end up with bad apples in their employee crew?
The success of any business is largely dependent on its employees. Good employees can help improve the business, and by the same token, bad employees can sink it into bankruptcy. That is why hiring good employees should be of paramount importance to all businesses, and particularly so for small businesses.
In my observation, most small business owners consider employee hiring a necessary evil they have to deal with when current employees leaves. They approach the hiring process in an ad-hoc fashion and try to get someone quickly so that the business can get back on track. The problem is hiring this way does not get you the right employees you need to make the business successful. Eventually, either you will need to fire the employee because he isn’t the right fit or the employee himself will leave. In the end, the cycle has to repeat and soon you find yourself in the endless hiring loop.
My previous two posts on hiring a manager for small business received interesting feedback from the readers. Some made arguments both for internal promotion, while others said external candidate is the best choice. To recap, the first post focused on why you should promote a manager from inside . I believe this is the best course of action when small businesses need to fill in the manager vacancy. However, there is a case to be made for hiring an outsider as laid out in the second post based on suggestions received from the readers.
It appears which candidate will be a better choice depends on your particular situation – what state the business is and how the newly hired manager fits in that situation. Instead of looking at this choice in black and white, you need to take a step back and look at your needs and see how the manager will help you fulfill them. So here are my thoughts on when to hire each type of candidate.