If you are a new business looking to expand for the first time with an outside appointment, hiring an employee can be a nerve-wracking process. The pressure is on to make the ‘right’ selection. Even for well-established firms, this can be a tricky path to navigate with minimal disruption. It’s therefore vital to reduce risk and anticipate problems before you sign on the dotted line.
Here are eight essential tips to help you make the best hiring decision:
1. Define the Job and Assess Cultural Fit
Deciding on job and person specifications seems obvious, but it’s equally important to ensure the candidate is a good cultural fit. Take time to choose the right people—meet them in different settings and introduce them to other (prospective) employees. You’ll be spending long days with them in an intense and fast-moving environment, so you need to be able to rely on them. A bad hire can disrupt your business quickly.
2. Always Verify References and Legal Right to Work
Make any appointment expressly subject to satisfactory references and evidence of the right to work in the UK (and criminal record checks if applicable). Always follow up on references—ideally speaking to referees directly. If you need to hire urgently and the employee has started before references are received, make it clear that employment will be terminated if they prove unsatisfactory.
3. Offer Competitive Incentives to Retain Talent
To keep good employees engaged and prevent them from leaving for competitors, offer incentives beyond salary. Consider bonuses, private medical cover, or shareholding options (such as an employee ownership agreement). If financial benefits aren’t feasible, flexible working arrangements—like remote work or flexible hours—can be an attractive alternative.
4. Consider Hiring a Non-Executive Director (NED)
A Non-Executive Director (NED) can provide valuable industry-specific insights without interfering with daily decision-making. They help keep the management team focused and offer objective advice. Additionally, they can introduce connections, potential clients, and marketing experts, helping to grow your business.
5. Plan for Employee Exits from the Start
Think about how to protect your business before an employee even joins. Avoid generic, “off-the-peg” employment contracts for senior or customer-facing roles. Instead, include tightly drafted post-termination restrictions to prevent employees from joining competitors, poaching customers, or taking confidential business information. Investing in robust IT security can also help protect sensitive company data.
6. Streamline Your Interview Process
A lengthy or unstructured interview process can deter top candidates. Ensure you have a clear hiring timeline and well-prepared interview questions. Use structured interviews with predefined criteria to assess candidates fairly and efficiently. Additionally, consider incorporating practical tasks or trial days to evaluate their real-world skills.
7. Utilise Probation Periods Effectively
A probation period allows you to assess an employee’s suitability before fully committing. Use this time to set clear expectations, provide feedback, and evaluate their performance. If they are not meeting the required standard, act decisively within the probation period to avoid long-term issues.
8. Leverage Social Media and Networking for Recruitment
Beyond job boards, use platforms like LinkedIn, industry forums, and networking events to attract quality candidates. Engaging with potential hires before they apply can help you find candidates who align with your company values and culture.
Need Help with Employment Contracts?
If your company requires assistance with employment contracts or hiring processes, don’t hesitate to get in touch with me or someone from our employment team at 0161 930 5151.