23rd September 2019
I think it’s safe to say that people aren’t just the foundation of an organisation, but also the walls roof, insulation and furnishings. They’re basically the whole house when you stop and think about it.
Why? Because without the people, the is no organisation. Without them, there’s no marketing, no sales or customer service and no management – and without the people, there’s no HR. A department that is (by its very definition) all about the people it supports.
This is true for any organisation be it a small start-up or a huge corporate body. At the end of the day, a business will only ever be as successful as the people who work there.
With this being said, it’s difficult to overlook the fact that small companies and start-ups have more constraints and fewer opportunities than the bigger corporations among us do, so the emphasis on building a great team is much more important to them than any other organisation.
Success isn’t easy to come by. It’s something you’ll need to work hard for, but with great company culture, skilled individuals and a dynamic team, you’ll be in the best possible position to achieve greatness – and the best part is that it’s all within your control.
What Makes it so Important?
If you need more convincing, here are the three top reasons as to why hiring is the single most important thing you will ever do as an SME.
Every Hire is Crucial Early On
Great people build great products, get great customers and eventually build a great company. It sounds so simple when you think about it, but it’s much more complicated than it seems. There will be many challenges in the early days – what’s more, is that the more successful you become and the bigger your team gets as a result, the hard it will be to keep your team members in alignment with each other.
To put it simply, everything that happens, good or bad, is down to your team. Empowering them to get on and take responsibility for their work and trusting them to put in the hard graft to succeed is one thing, but you need to feel confident that they can and will do you proud – and you will only achieve that if you hire the right people from the get-go.
Small companies just don’t have the means to make a lot of mistakes and there is so much pressure on them to build a great product, nail the distribution and find a viable business model. When you have the best team around you, this is likely to work out well but it can just as easily go sideways, and this can be the result of just one bad hire.
It Shapes your Company
People and culture are symbiotic as the people shape the culture and the culture shapes the people. Job seekers today want more than just pay and benefits; they are looking for a supportive and transparent environment that delegates and encourages responsibility instead of micromanaging.
Build a culture that encourages hard work and team spirit and offers ample opportunities to employees and you won’t have a hard time trying to sell your company to any potential candidates.
Having a good company culture will not only shape the people you hire – but it will also attract new talent which, in turn, will help to improve on your culture even more and add to the invaluable skills that your team hold.
To protect your culture, you will need to make sure that you are hiring the right people though, as hiring people who are a bad fit for the company or are simply just not right for the role will risk ruining everything that you have worked so hard to build.
Bad Hiring Costs a Lot
Of course, hiring new people is always going to come at a cost. You have to fund the job ads, take time out of your already busy schedule to review applications and CVs and then conduct interviews. Then there’s the time and resource spent on induction and training once the new hire starts. In fact, the average cost of a bad hire can range from anything up to £130,000, according to the Recruitment and Employment Confederation.
Besides the obvious costs, there are some indirect losses to be had when making a bad hire too, including the time spent correcting their performance or behaviour, firing them and going through the recruitment process all over again to replace them. In addition to this, the negative energy of a bad hire can also risk damage to morale and productivity which can have a deadly effect on your company culture.
When all is said and done, hiring is an essential part of growth and success. Not taking recruitment seriously is a costly mistake. Not doing your research, failing to provide the right training for new hires upon recruitment or even hiring the wrong candidates is costly and can seriously damage your efforts to progress. Skilled, experienced and resourceful people are out there, you just need to know how to find them. Adding them to your team will add worth to your company and your culture alike. Take the time needed to find them to create the company you envision.
Clarisse works as the Lead of our Customer Support Team to provide all of our customers with the very best care and guidance when using their HR software.