How small businesses can hire the right people

Doug and Polly White have seen small businesses use all kinds of questionable hiring practices. There was the entrepreneur who hired anyone looking for work. Then there was the woman who hired and fired her sister twice. The list goes on.

In their book, Let Go to GROW: why some businesses thrive and others fail to reach their potential , the Whites found from their business consulting that entrepreneurs often don’t know how to hire employees.

“No one is born knowing how to hire and manage people,” said Polly. “You come into this with no clue how to hire and manage people. So entrepreneurs often end up hiring friends and family. While your friends and family may be right for a job in your organization it’s not always the right way to go.”

Entrepreneurial interviewed the Whites about the five steps businesses can follow in order to hire the right people.


1. Know what you need

Hire someone based on their behaviors and cognitive capabilities.

“By behaviors we mean work ethic and turning up on time,” said Doug.  “At the entry-level you can teach them how to make a widget. But you’re unlikely to teach someone a great work ethic.”

Forcing employees to take time off

– Cynthia Hsu is a contributor to FindLaw’s Free Enterprise blog. FindLaw is a Thomson Reuters publication. –

Employee vacation policies can vary depending on your business. Some employers choose to have no vacation time during a year, while other employers are now instituting forced vacations for employees.

At the Motley Fool, a 250-employee financial services company located in Virginia, all employees are entered into a monthly drawing where one lucky (or unlucky, depending your perspective) employee “wins” a forced two-week vacation, according to The Wall Street Journal.

How not to be the Charlie Sheen of your office

Michelle V. Rafter covers business and workplace issues for a variety of national publications. She is based in Portland, Oregon. This article originally appeared on SecondAct.com. The views expressed are her own. –

After Charlie Sheen publicly lambasted the executive producer and others involved in his top-rated TV comedy Two and a Half Men last week, CBS shut down production for the rest of the season. The announcement came days before the show’s cast was scheduled to go back to work following the 46-year-old star’s stint in rehab.

Now Sheen is threatening to sue and demanding a raise to a reported $3 million per episode, and it’s hard to say how or when the melodrama will end.

Want to keep your employees? Try better benefits

USA/A better hiring mood and a labor market overflowing with quality candidates could make CEOs complacent when it comes to retaining staff.

That would be a mistake according to Luke Vandermillen, vice president at advisory firm Principal Financial Group, who said employee turnover can be costly.

Citing estimates, Vandermillen said the one-time cost of replacing just one employee can be as much as 150 percent or more of their annual salary. Recruiting, hiring and training replacements for lost people add up and companies also suffer from lost productivity and intellectual capital, he added.

4 pieces of advice on health insurance for entrepreneurs

USA/ – Ryan Hanley is a Commercial Account Executive for the Guilderland Agency, Inc. and a contributor to Under30CEO. The opinions expressed are his own. -

Health insurance is expensive.  There is no way to get around that fact and anyone who tells you different is trying to sell you something you don’t need.  Unfortunately for a young business, the burden of health insurance is even more important than that of a larger or more mature business, (in development, not demeanor).

A Case for Health Insurance

For an entrepreneur skimping on insurance, especially health insurance, is playing Russian Roulette with your future.  At no time in your business’s growth will the health and wellness of employees be more important than the start-up years.  Think about the set-back in growth if the founder of a 2nd year business became ill and had to miss a month.  A terrifying scenario for most young businesses. Now think about that same situation coupled with the stress of the same business founder coming straight out of pocket for all medical expenses.  I’ve seen this situation where money earmarked for business growth is diverted towards medical costs and it’s not pretty.