One in five small business owners would prioritise recruitment if revenue doubled
If revenue was to suddenly double, small business owners would be more likely to prioritise hiring new staff than any other investment, according to new survey findings.
To find out more about how important recruitment was considered by small business owners, American Express and the Centre for Economics and Business Research think tank asked 500 employers of the most important investments they made after founding their business.
Almost one in four respondents said the most important business decision made in the early days of their company was hiring new staff. In contrast, choosing suppliers and investing in technology were considered less crucial to growing a new company.
However, a short supply of expertise was cited as the greatest barrier to hiring new staff, as employers struggled to was accessing the right skills within a sustainable budget. A narrow candidate pool was followed by the cost of increasing staff numbers.
When asked what they would invest in if their revenue was to double, over one in five respondents said they would prioritise recruitment the most frequently cited investment.
Our three-part guide to hiring your first member of staff is essential reading for new business owners:
A closer breakdown of the findings revealed the shifting priorities as a business grows in size. For a third medium-sized companies, technology would be the first investment if revenue was to double, while just 22 per cent would focus on recruitment.
Commenting on the findings, Jose Carvalho, American Express vice president, said a strong recruitment strategy was essential to business success.
there are many hurdles on the path to business growth and securing top talent is key priority for ambitious SMEs, he explained.
To help growing small business owners sustain a strong recruitment strategy at realistic costs, Carvalhooffered the three following tips:
Incorporate hiring into your overall growth strategy
“Having a clear trajectory of how and when you will expand your staff will help you budget time as well as money, so that you can find new candidates and onboard new employees as efficiently as possible.”
It can be incredibly difficult for an employer to end up recruiting the right candidate. Often a new hire will be someone who doesnt fit with the business, and brings little knowledge and enthusiasm to the team. more»
If a new employee is not a good fit and leaves after a short period of time, then the company will have to face the cost of a replacement, as well as the time that was lost. So, what should employers do to avoid risks and reduce costs when hiring new people? more»