How to Hire Good Employees for Small Businesses: 6 Proven Strategies

If you're struggling to find quality employees for your small business, you're not alone. But here's the problem: most small businesses are using hiring methods that practically guarantee they'll lose the best candidates to faster-moving competitors.

The harsh reality: 80% of UK small businesses plan to expand their staff (Startups.co.uk, 2024), but 81.5% face tough times hiring, and 22% of small businesses recognise skilled staff shortages as their biggest impediment to growth (Federation of Small Businesses, 2024).

The cost of getting this wrong is devastating for small businesses. A bad hire at manager level with a £42,000 salary can cost a UK business £132,000 in wasted salary, training, and lost productivity (Recruitment & Employment Confederation, 2024), and in a small team, one wrong person can derail entire projects.

But there's good news: small businesses actually have significant advantages over larger competitors when they use the right approach. This guide shows you exactly how to gain that competitive edge.

Most small businesses are trapped in outdated hiring processes that worked 20 years ago but are disastrous in today's competitive market. Here's why traditional methods fail:

The timing problem is critical: The best candidates are off the market within 10 days (Indeed UK, 2024). If your hiring process takes longer than that, you're only seeing second-tier candidates.

Fortunately, there's a much better way.

The most successful small businesses have discovered something their competitors haven't: psychometric assessments combined with streamlined processes give you a massive speed and accuracy advantage.

Here's why this approach is so powerful:

The assessment-first approach works like this:

1. Candidate applies: They receive an assessment link immediately, not after days of CV screening.

2. Assessment completed: You get objective data on cognitive ability, personality fit, and job-relevant skills within 24 hours.

3. Interview top scorers: You only interview candidates who've already proven they can do the job, making interviews focused and productive.

4. Fast decisions: With objective data backing your choice, you can make confident offers within 3-5 days.

The result: You secure top talent while your competitors are still reading CVs. Small businesses using this approach report 40% reduction in time-to-hire and 60% improvement in new hire performance.

Here's your complete playbook for consistently hiring excellent employees. These strategies work together to give you a competitive advantage:

1. Define your ideal candidate before you start

Most small businesses write vague job descriptions and wonder why they get poor applications. Instead, create a specific success profile:

Pro tip: Interview your best current employees about what makes them successful. Use their insights to build your ideal candidate profile.

2. Use targeted sourcing to find quality candidates

Don't waste time posting jobs everywhere. Focus on channels that deliver quality candidates:

3. Create compelling job descriptions that stand out

Your job description competes against hundreds of others. Make yours compelling by highlighting the small business advantages:

4. Use assessments to identify top performers quickly

This is your biggest competitive advantage. While competitors waste time on CV screening, you can identify and secure top talent immediately.

The speed advantage: Assessments can be completed in 20-30 minutes, giving you instant insights. You can send assessment links immediately after applications and have results within 24 hours.

5. Conduct focused, efficient interviews

Since assessments have identified your top candidates, interviews become focused and efficient. Structure them like this:

Total time: One hour. Much more efficient than traditional multi-round processes.

6. Make quick, confident decisions

Your biggest advantage over larger competitors is speed. Use it:

If all four are positive, make the offer. Don't second-guess objective data.

"Won't assessments put off good candidates?"

Actually, the opposite is true. Serious candidates appreciate the opportunity to showcase their abilities properly. Modern assessments are engaging and mobile-friendly. Candidates often prefer them to lengthy application forms, and completing an assessment makes them feel more invested in your opportunity.

"How do I know these assessments are accurate?"

Our assessments are scientifically validated with proven track records in predicting job performance. They use sophisticated techniques to detect inconsistent response patterns, so candidates who try to manipulate results usually reveal themselves through contradictory answers.

"What if we can't compete with larger companies on salary?"

Top candidates aren't just looking for money. They want growth, recognition, and the chance to make a real difference. Small businesses can offer unique advantages like diverse experience, close mentoring, flexible working, and direct impact that larger companies can't match.

"How long does this process take?"

The entire process from application to offer can be completed in 3-5 days. Assessment takes 20-30 minutes, results are instant, interviews take one hour, and you can make decisions within 48 hours. This speed gives you a huge advantage in securing top talent.

"Should we still do interviews after assessments?"

Absolutely! Assessments identify candidates who can do the job; interviews determine cultural fit and motivation. Since you're only interviewing pre-qualified candidates, your interviews become much more focused and productive.

The small businesses that thrive in today's competitive market are those that can identify and secure top talent quickly. While competitors struggle with outdated hiring processes, you can gain a significant advantage with the right approach.

Remember the six key strategies:

1. Define your ideal candidate clearly before you start
2. Use targeted sourcing to find quality candidates
3. Create compelling job descriptions highlighting small business advantages
4. Use assessments to identify top performers immediately
5. Conduct focused, efficient interviews
6. Make quick, confident decisions with objective data

Ready to get started?

• Explore our SME-specific assessment solutions designed for small businesses
• Not sure which assessments fit your needs? Book a conversation with our team for personalised guidance
• Want to see the assessments in action? Start with a free trial and experience the difference

The difference between struggling to find good employees and consistently hiring excellent ones often comes down to having the right tools and processes. Don't let another great candidate slip away to a faster-moving competitor.