Hiring the wrong person is a major risk for small business owners because a single bad hire can hurt productivity, damage your reputation, and negatively impact team morale. A hiring error can cost your organization resources that you simply can’t spare.
A recent survey by LinkedIn found 66% of small businesses in the U.S. were planning to hire more in 2025 than they did in 2024. So, with the U.S. celebrating National Small Business Week (May 4 – 10), it’s a good time to review some best practices that can help you mitigate the risks and maximize your chances of making a successful hire — who will stay long-term.
1. Take the time to plan
It may be tempting to begin finding and interviewing candidates once you identify a hiring need, but that’s a mistake. Upfront planning can help you build a more focused and effective hiring process, potentially saving you time and money while helping you identify your most qualified candidate.
Spend time to consider:
- Your ideal candidate profile. Build a clear understanding of what the person in this role will be responsible for and what qualifications they should have to be successful. Use this to build a clear, compelling job description. And keep in mind that LinkedIn is launching an AI-assistant within LinkedIn Jobs that can help with drafting job descriptions and other repetitive hiring tasks.
- How you’ll evaluate candidates. Determine how you’ll assess required skills and qualifications during your hiring process. This may include resume screening, application screening questions, interviews, skill assessments, reference checks, and background checks. Consider the specific goals for each stage of your hiring process and who will conduct each stage to build out your hiring timeline.
- What would entice candidates to join your team. Consider what makes your company a good place to work and why a candidate would choose your opportunity above all others. Asking your team members why they like working on your team is a great place to start.
- Your compensation range. Know your compensation range up front so you can communicate it with candidates and help ensure a smoother job offer process.
2. Streamline your hiring process
There’s no need to start from scratch each time a new role opens on your team, even if you don’t have a centralized recruiting function. Gather and update assets from previous hiring processes to save time and learn from past successes and failures.
For example, maintain a repository of:
- Job application templates
- Job description templates
- Candidate communication templates
- Interview questions
- Reference check questions
- Offer letter templates
- Employee onboarding templates
Take note of which assets are performing well and where there’s room for improvement so you can continually improve your hiring efficiency and effectiveness.
3. Leverage your team members
Recruiting is a team sport. You all win when you add a skilled employee to your team — and you all lose when you make a bad hire. Get your team members more involved in the recruitment process to lighten your workload and improve your hiring outcomes.
Ask your team members to help with:
- Employee referrals. Enable and encourage your team members to refer candidates by communicating about open roles, creating a simple candidate submission process, and offering recognition and rewards for referrals.
- Employer branding. Empower your team members to create employer branding content, such as LinkedIn posts that show firsthand what it’s like to work at your organization. Sharing content examples and helpful tips can encourage more of your team members to participate.
- Recruiting materials. Gathering different perspectives on your recruiting materials, such as job descriptions, candidate email templates, and interview questions, can help you improve them. Ask your team members to review these materials for accuracy and to help you make them more appealing.
Team member involvement works best when it comes from the top down. Your company leaders should talk about the importance of hiring in your all-hands meetings, share open roles, and encourage everyone to participate in recruiting. It also helps if they’re actively making referrals, joining the interview process, and posting about your company on LinkedIn.
4. Provide a positive candidate experience
A positive candidate experience can help you keep candidates engaged so they’re less likely to drop out of your hiring process and more likely to accept a job offer. It can also contribute to a positive employer brand that helps you attract talent for future roles. (Another tool for enhancing your employer brand is LinkedIn’s new Premium Company Page offering, which helps small businesses grow their audience and credibility.)
Some basic tips to provide a positive candidate experience include:
- Communicate regularly. Candidates are typically eager to hear back from you at each stage of the hiring process. Make it a point to stay in contact, even if you have to send a blind carbon copy email to all of your candidates saying you don’t have an update yet.
- Offer transparency. Transparent hiring practices help you build stronger relationships that leave candidates with a favorable impression of your organization, even if they aren’t hired. Be transparent where you can, such as including salary ranges in job postings, sharing your interview process and timeline with candidates up front, and offering feedback.
- Put your candidates at ease. The hiring process can be stressful for job seekers. Helping your candidates feel comfortable and relaxed during the interview allows them to open up and showcase their true potential. Let interviewees know what to expect ahead of time: Who they’ll meet, what topics or specific interview questions they’ll discuss, and any other details they should know. On the day of the interview, greet them warmly, offer them a beverage, and make sure interviewers stay engaged in the conversation.
You can find additional ways to improve your hiring process by surveying candidates about their experience. These insights can help you make meaningful changes to level up your recruitment program.
5. Prepare your team members for internal mobility
Nearly two in three small businesses think that internal mobility will be an important topic shaping the future of recruiting — and for good reason. Offering your team members opportunities for career growth can help you reduce talent acquisition costs, close skill gaps, and retain employees.
While small businesses may have fewer opportunities for advancement compared to larger organizations, they may conversely ask employees to wear more hats, juggle more roles, and develop broader skill sets. And when a new position does open up, you may find that you have a strong internal candidate ready to step into the role.
Sync with your team members to understand their career goals and offer programs to help them get there, such as:
- Stretch assignments
- Online learning courses
- Mentoring
- Conferences
- Degree programs
- Professional bootcamps
- Peer-to-peer learning
6. Use the right tools
Almost half of small businesses (49%) think that new recruiting technology will be an important topic shaping the future of recruiting.
Modern technology can support many of your hiring processes to save you time and improve your hiring outcomes. Build a tech stack that makes sense for your company size and hiring volume.
For example:
- Small teams with sporadic hiring needs can use LinkedIn Jobs with AI-assistant to streamline applicant evaluation and invite passive candidates to apply for open jobs
- Organizations hiring for several roles concurrently may benefit from an applicant tracking system to better manage applications, candidate communications, and the interview process
- Rapidly growing teams may benefit from incorporating specialized software to support areas like sourcing, referrals, and assessments
Final thoughts: Take one step at a time
Following hiring best practices can require some upfront investment that pays off with a more efficient recruiting process and better hiring outcomes. But you don’t have to overhaul your process all at once.
Identify the areas you’d most like to improve and start there. For example, invest in building out your referral program if you don’t have enough qualified candidates in your talent pipeline. Continue improving your recruitment process over time so you can build a team that helps you reach your business goals.