Common Hiring Errors by Startup Businesses
April 5, 2009 by Stephen Kersey
Filed under Business
When you get to the point in your startup business that you start hiring outside help, be sure to avoid the common hiring errors. Hiring employees is a very complicated process that should be extensively planned. A few wrong hires could be the death of a startup business.
Here are five common hiring errors made by startup businesses:
5. Hiring after short-term gains. A lot of startups make the mistake of making long-term hires after short-term gains. For example, if you have a business that has a busy season, don’t hire full-time employees due solely to that busy part of the year. Instead, consider adding part-time and temporary workers when needed. It’s always best to have employees with too much to do than too little.
4. Overpaying employees. As a startup business owner, it may feel good to give other people their dream jobs. However, do your due diligence to ensure that you are paying market value. Additionally, don’t hand out stock options or ownership percentages unless absolutely needed.
3. Hiring friends. The old saying says not to mix friends and money, and that’s especially true in the startup business world. When hiring, start each potential employee at an equal level during the interviewing process.
2. Not having a complete job description. When you hire someone, have specific jobs in mind. Hiring people to just help out means you haven’t done enough research. Each employee should have specific job details.
1. Hiring employees too early. Don’t get too excited too quickly. You should continue working with a limited workforce as long as possible. Hiring outside help should be an obvious last resort.
Is it time for your startup business to start hiring? (Image: Flickr)
