| It probably started with the first person you hired. As a | | | | Revenue producing employee positions are often part |
| brand new small business owner, you hired your first | | | | of your marketing function. Expense saving positions |
| employee without knowing exactly what role they | | | | may be found in your operations function. In either |
| would play, a well thought-out job description, no skills | | | | case, you'll need to determine the source of funds for |
| testing or resume checking, no source of funding for | | | | compensating the employee. If the position is revenue |
| their pay check and no game plan for getting the best | | | | producing the source of funds for compensation might |
| they had to give. Guess who you hired? You hired | | | | be the sales volume the employee creates. If the |
| "You" for the position of business owner and every | | | | position is expense saving the source of funds might |
| other job you're currently doing. Here's how to avoid | | | | be tied to how the employee impacts your monthly |
| the same small business hiring mistakes in the future. | | | | overhead. |
| Create an Organizational Structure | | | | In every case, the source of funds used to pay an |
| Every small business must perform certain basic | | | | employee position must be determined before deciding |
| functions to ensure their success and profitability. Your | | | | to hire the position. It's also very important to discuss |
| organizational chart should reflect not the people who | | | | how a position is to be paid and what your |
| occupy the position but the position itself. What must | | | | expectations are with any employee candidate. Don't |
| be accomplished is the function you will ultimately hire | | | | expect an unclear source of funds to produce the |
| an employee for. | | | | cash flow you need on payday. |
| For example, if your small business uses a direct sales | | | | Design a Plan to Motivate the Person Hired |
| method to accomplish its marketing function then the | | | | Given an organizational structure, a list of required skills |
| chart needs a place in it for that position. Yes, | | | | for the employee position and a source of funding |
| someone or some system will perform the function as | | | | based on creating revenue or saving expenses, you |
| an employee, but the first issue is to designate the | | | | now ready to actually hire a qualified individual - a real |
| function. If the function doesn't exist don't hire someone | | | | person. If you're a fit, hire yourself or some other |
| to fill the space just because they could be good at it | | | | qualified person. Once you've selected a candidate to |
| or you'd like to employ them. Start with spaces, not | | | | hire there's one more critical step. |
| faces when you create your small business | | | | It's too time consuming and expensive to make the |
| organizational structure. | | | | small business hiring mistake of not keeping a person |
| List the Skills You Need to Hire | | | | you've just hired. And, for most new employee hires, |
| Once you've created an organizational chart based on | | | | they'd like their new job to work out too. It's critical to |
| the functions required for your small business to | | | | design a plan to ensure employee retention. At the |
| succeed and profit, than you can turn your attention to | | | | core of employee retention is keeping people engaged |
| the skills required for the position. You're still not at the | | | | and motivated. Do you know what you're potential |
| stage of hiring an employee. You're only at the point of | | | | employee is looking to achieve through their employee |
| listing the skills an ideal employee should possess. | | | | relationship? |
| A common small business hiring mistake is to hire | | | | Small business owners often feel the steps required to |
| people who you like or are related to you. The idea of | | | | avoid common employee hiring mistakes are not worth |
| fully understanding the skills and aptitudes required to | | | | the rewards following them would provide. The first |
| successfully complete the required tasks of a | | | | reward for following the steps listed above is a small |
| particular job is not always how a small business | | | | business that's on track for reaching its objectives. The |
| owner approaches the development of a job | | | | second reward is exponential results of having an |
| description. Every employee should be hired against a | | | | employee who is truly qualified for the position they |
| job description. | | | | hold. The third reward is getting your money's worth |
| Don't hire a person with the idea you'll fit them in. Hire | | | | out of the compensation you're paying. The fourth |
| the skills you need to accomplish the functions required | | | | reward is a long-term employee satisfied with the |
| by your small business. A good employee starts with a | | | | position they hold. |
| person who possess the basic skills you've listed. | | | | If these rewards fit your small business hiring goals |
| Source Funds to Compensate the Position | | | | then use the four steps above to avoid these |
| Every small business function and the jobs required to | | | | common employee hiring mistakes. It's possible you |
| complete them must be matched to a source of | | | | didn't subject yourself to these steps when you hired |
| funds. Each employee function you hire should be | | | | yourself as a small business owner, but it's never too |
| viewed from a cash flow standpoint. Does the position | | | | late for you and all the jobs you do to benefit from |
| primarily create revenue or save expenses. | | | | them. |