As entrepreneurs, we often face challenges during our first hiring process. We all seek supportive, dedicated, responsible, and loyal employees. These traits are typically found in ambitious individuals, but can we afford and retain them?
Your hiring philosophy should be:
- Aligned with your personal style, and
- Consistent with your business strategy.
Personal Style Considerations
Here’s a critical question: Can you delegate? Be honest.
An entrepreneur who can’t delegate is destined for long hours and limited growth.
If your answer is “NO,” you need to build a team of “good soldiers”—individuals who accept authority, follow instructions, and serve loyally.
If your answer is “YES,” you value delegation. Your team should consist of people who can take responsibility, make decisions, and work independently. However, these free spirits must align with the corporate culture and goals you establish.
Another crucial factor: Will new employees fit your leadership style? Design your hiring process to include situational questions and possibly psychological tests.
Salary Strategy for Employees
As an entrepreneur, you have two options:
- Hire low-paid employees: You’ll soon discover why their services come cheap. Be prepared for many issues, so strengthen your after-sales support.
- Hire highly qualified employees: This is typically adopted when aiming for high-quality services or products, or when you lack an internal employee development program.
Option one is usually adopted when your strategy is price-based, as errors have less impact when you sell cheap. With a strong training program, you can pay slightly less and still enhance employee quality through training. Prioritise training your capable employees first.
Team Building
Building a team can be one of the toughest tasks for an entrepreneur. You are responsible for fostering trust, establishing effective communication channels, issuing clear work instructions, managing brainstorming sessions, and collecting feedback. On the other hand, employees also have responsibilities to the company. It’s your duty to create a fair and equitable work environment by:
- Implementing an evaluation system: Every employee should receive regular evaluations. Annual KPIs are outdated; the evaluation criteria should be clear and understood.
- Setting measurable goals: Numerical targets such as sales quotas or efficiency improvements. Project milestones or levels of accomplishment. Skill acquisition within a set time frame.
- Establishing a reward system for achievements. Employees appreciate tangible and immediate rewards for extra effort.
While it’s ideal for employees to get along and enjoy working together, it’s not something the company can always ensure. Therefore, be prepared to terminate employment if necessary. Before firing, issue clear written warnings. Build your case gradually with two or three levels of warnings, referring to issues outlined in the employee manual and job descriptions. Avoid firing in the heat of the moment.
Always remember, the cost of replacement can equate to up to nine months’ salary, plus the time spent on the hiring process.
Dr. Youssef Lamaa
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