Small Business Hiring Tips: Best Ways to Recruit Employees

Small business hiring tips

Remember these tips to ensure you hire the employees who will best fit the role and your organization. 

Plan ahead.

Like other aspects of running a business, hiring all comes down to planning. If you’re desperate and have to hire the first candidate you see, you’re unlikely to get the best person for the job.

Instead, give yourself time to create a hiring process. This technique will help you proceed methodically, allowing you to get to know people and attract candidates who appreciate order and organization.

According to recent SHRM research, the average time to fill open roles has fallen from 48 days in 2023 to 41 days in 2024, indicating that companies adopting streamlined, planned approaches are seeing significant improvements in hiring efficiency.

Write a detailed job description.

Writing a job description is one of the most critical phases of the hiring process. It’s your chance to dig deep and think about what you and your business need before you put it to paper. Spend some time examining your own strengths and weaknesses and figuring out where and how someone else will be able to fill in the gaps.

Imagine what the person’s day would look like and how their position will change your workload. For instance, it may turn out that hiring an independent contractor or freelancer could be a solution for specific tasks, which would allow you to outsource projects periodically. After reviewing the factors recommended above, you may recognize that you need a full-time employee who can handle various tasks.

Legal Compliance Alert: According to the Equal Employment Opportunity Commission (EEOC), it’s illegal for an employer to recruit new employees in a way that discriminates against them because of their race, color, religion, sex (including transgender status, sexual orientation, and pregnancy), national origin, age (40 or older), disability or genetic information. Job descriptions must focus solely on essential job functions and requirements.

Look beyond skills and experience.

A great employee should balance professional skills, motivation, attitude and learning ability. Skills are easy to measure but the other elements are also essential. In some cases, a candidate with less experience who is enthusiastic and eager to learn on the job may be a better choice than an unreliable expert.

Academic research published in Frontiers in Psychology also demonstrates that traditional hiring practices often leave out highly talented people due to unconscious bias. The study found that skills-based assessment methods can significantly reduce gender discrimination in hiring decisions while improving candidate quality.

Be creative with your compensation package.

If you can’t afford to pay the highest salaries on the market, consider other ways to attract and recruit the best employees. If you’re a small business, you may be able to offer better learning opportunities or flexibility than a large firm can.

Maybe you’re located conveniently in a neighborhood without many other employment options, which could make employment with your business more convenient and strengthen your roots within your local community. Think about your company’s advantages and recruit accordingly.

Think outside the traditional candidate pool.

Diversity in recruiting is crucial and beneficial for businesses. However, traditional hiring practices often leave out some highly talented people simply because they might not fit the conventional image of a particular profession. For example, you may find great people who were overlooked because they didn’t go to big-name schools or can’t work standard hours due to family obligations.

Other candidates may have personalities that don’t fit the stereotypical image of the role. For instance, you may think a good salesperson is gregarious and bold, but someone with a slightly different approach may increase sales by being approachable and listening attentively. Go beyond your preconceptions to find people with unique skills and potential.

Ask thoughtful interview questions.

Go beyond the classic “Tell me about yourself.” Instead, ask specific but open-ended interview questions.

For instance, try asking people about projects they’ve worked on and have them tell you what they liked and disliked about each one. These answers will help you understand the person’s strengths and the kinds of environments in which they’re likely to thrive.

Being thoughtful about interview questions also means you should steer clear of inappropriate or illegal questions. For example, the EEOC prohibits discriminatory interview questions relating to age, family status, pregnancy, religion, national origin, disability, arrest records, or other protected characteristics. Violating these restrictions can result in discrimination lawsuits and EEOC investigations.

Questions to avoid include:

• Are you married?
• Do you plan to have children?
• How old are you?
• What year did you graduate?
• What’s your native language?
• Do you have any health conditions?
• Have you ever been arrested?
• What religion do you practice?

Instead, focus on job-relevant questions like “Can you perform the essential functions of this job?” or “Are you available to work the required schedule?”

Check references and do your research.

You don’t have to run a formal background check these days to get some idea of who your candidate is outside the interview room. Besides calling job references, doing a simple Google search can go a long way. It won’t reveal everything, but it can help verify what’s on their resume and may raise some red flags.

It’s important to note that, if you do conduct a pre-employment background check, you must comply with the Fair Credit Reporting Act (FCRA) and obtain written consent from candidates. Some states have “ban the box” laws restricting when you can ask about criminal history.

Sell your business to candidates.

Candidates always have the option to turn you down. Therefore, you need to impress your candidates as much as they need to impress you. Be friendly and considerate of their time throughout your recruiting process.

In the interview, provide information about the job and give your interviewee a chance to ask questions. Remember that the questions you ask also send messages to candidates. For example, even for someone with no family responsibilities, asking (possibly illegal) questions about their home life may hint that you don’t know how to support a healthy work-life balance.

Be professional and courteous when rejecting candidates.

In the small business world, news travels fast. It’s perfectly fine to reject most candidates, but it will reflect well on your business if you are courteous and appreciate the time the potential candidates invested.

It’s not polite to disappear once you’ve ruled out a candidate. Instead, take the time to send an introductory thank-you email and let the other candidates know you’ve filled the position. In this case, an email is acceptable.

If you liked the candidate, you could tell them you’ll keep their application on file. Then, even if they don’t have the skills you need now, it could save you time later when you need someone with their particular experience.

Focus on employee retention.

Make a solid effort to retain your best employees by ensuring they feel appreciated and giving them room to grow in their positions. There are many ways to develop and retain employees, so find some that work for you. Employee loyalty is a priceless commodity you won’t find on a resume.

The Bureau of Labor Statistics’ (BLS) 2025 JOLTS data revealed a 2 percent quit rate, with 3.2 million Americans voluntarily leaving their jobs monthly, highlighting the critical importance of retention strategies.

How to recruit employees

Building an effective recruitment strategy is crucial for attracting top talent to your small business. Research from SHRM’s Talent 2025 survey indicates fierce competition for talent, making strategic recruitment more important than ever.

• Develop a comprehensive sourcing strategy. Start by identifying where your ideal candidates spend their time. Use multiple channels including job boards, professional networks, social media, and industry-specific platforms. Recent data in The State of Skills-Based Hiring Report 2025 shows that skills-based hiring approaches are being adopted by 85 percent of employers, focusing on abilities rather than credentials alone.
• Leverage employee referrals. Employee referral programs consistently produce high-quality candidates. According to the BLS’ Employment Situation Summary, unemployment is holding steady at 4.2 percent and job openings remain at 7.4 million. Competition for talent remains intense, making referrals even more valuable.
• Build your employer brand. In today’s competitive market, candidates research potential employers extensively. Build your brand by maintaining inclusive hiring practices and transparent communication about company values and opportunities.
• Use technology strategically. While leveraging AI and automated tools for initial screening, recent Department of Labor (DOL) guidance emphasizes that eliminating humans entirely from hiring processes could result in violations of federal employment laws. Maintain human oversight in all hiring decisions.

Do’s and don’ts of hiring employees remotely

The popularity of remote work has grown, particularly since the COVID-19 pandemic. Here are some best practices to follow and mistakes to avoid when you’re hiring remote employees:

DO: Build an online presence.

Building an online presence is essential for hiring remote employees if you are a small business. Remote candidates can live globally, but if they have trouble finding information about your business, they may not apply.

Provide information about you, your company and your business’s mission on your website, social media profiles and other relevant channels. Make sure to offer a straightforward way to contact your company.

Frequently check to ensure you have a positive score on Google reviews and Glassdoor. In addition, keep your social media accounts current and your brand identity consistent.

DON’T: Post everywhere.

Even though you may be tempted to post your job opening on as many sites as possible so you can fill the position quickly, this strategy will require you to sift through many unqualified candidates, ultimately costing you time and money.

DO: Create an introduction video.

All companies want to find the most qualified candidate for the position. The best way to make an excellent first impression is to provide a video introducing yourself, the company and the company’s mission.

This way, the potential candidate can use the information to tailor their resume and may connect to your company by replying in video form. An introductory video can even generate excitement about the position.

DON’T: Treat remote workers like contractors.

Workers choose remote positions to have a flexible schedule, save on costs and increase productivity. However, that doesn’t mean you can treat a remote worker like a contractor. Employers must properly classify workers as employees vs. independent contractors regardless of whether they work remotely or in-office. Misclassification can result in significant penalties and back-pay obligations.

If the remote worker is a vital part of your team, you must offer the same benefits as a worker with a desk at the office. Provide the employee with health insurance, vacation benefits and hourly or salary increases. It’s possible to have just as much turnover from remote workers as in-office ones.

DON’T: Take advantage of remote workers.

Especially if someone is new to remote work, it can be easy to take advantage of them. For example, remote workers might not be aware of job description boundaries or know that they don’t have to be on call 24/7.

Be transparent and upfront with the remote worker’s responsibilities. If roles change or you need the employee to be flexible in a particular skill area, have a conversation with them to make sure they are on the same page. When remote workers feel their job crosses a boundary, they should be free to express their concerns with their managers and employers.

DO: Set clear communication expectations.

Communication is an essential piece of remote work and the amount of communication a remote worker receives can make or break an employee-to-employer relationship. Answer the following questions during the interview process:

• What time zone are employees accountable for?
• Are all hours remote or will there be required trips to the office?
• How flexible are the hours?
• How many meetings will there be and will they be remote or in person?
• Does the company pay for in-person meetings or retreats?
• Will the position stay remote or change to an in-person position?

DON’T: Overlook skills for the sake of credentials.

Don’t immediately pass up candidates who didn’t go to college or who don’t have all of the requested skills. Instead, if the role allows, consider adding team members with a lot of real-world experience, unique characteristics or high-profile internships.

When deciding on a candidate, a remote worker should be given the same treatment as an in-office worker. Just because they are working remotely doesn’t mean their soft skills shouldn’t be considered.

DO: Use team member referrals.

Ask your current team members to recommend remote workers who match your company culture well. Team members can be compensated for referring quality candidates or invited to an in-person or virtual interview.

Julie Thompson contributed to this article.