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It can be tough to know when and how to hire new employees. Follow these tips and tricks to simplify the process.
Properly staffing your business can be challenging, and workforce trends over the past few years have made the process even harder for small businesses. According to the U.S. Bureau of Labor Statistics, job openings declined to 7.2 million in July 2025, down from more than 9 million the previous year. Additionally, 17 percent of small business owners cite recruiting and retention as their biggest challenge, just below cash flow and inflation concerns.
However, understanding when and how to hire employees the right way can make a big difference in the success and retention of your workforce. Here are practical tips to help you thrive.
Hiring the right people takes time, and delays can cost your business productivity and revenue. According to SmartRecruiters’ 2025 Recruiting Benchmarks report, businesses take an average of 38 days to fill an open position. The structured steps below can help you cut down on that timeline and bring in the talent you need more efficiently.
The first step in the hiring process is confirming a legitimate need for a new worker. But hiring isn’t cheap. The Society for Human Resource Management (SHRM) reports that the average direct cost to hire a new employee in 2025 is about $4,700. And that’s just the baseline. Hiring to replace an existing employee can push costs much higher once you factor in lost productivity, recruiting time, onboarding and the strain on your existing staff.
Before making the investment, ask yourself: Can you shift responsibilities among existing employees or use technology to fill the gap? If not, it may be time to bring someone new on board.
Once you’ve established that a new hire is necessary, decide whether the role should be temporary or permanent. For short-term or project-based needs, choosing an outsourcing partner can be more cost-effective than hiring directly. “If the increase in workload for your company is project-specific or more short-term, consider outsourcing those duties to a staffing company or consulting firm that specializes in those activities,” advised Stephen Carter, CEO and partner of Sterling Staffing Solutions.
Once you know the type of worker you need, the next step is crafting a strong job description. Since it’s often a candidate’s first interaction with your company, make sure it reflects your culture and clearly communicates the role’s requirements, responsibilities and skills. A well-written job description not only impacts the number of applicants you receive but also their quality.
Keep EEOC compliance in mind by focusing on essential job functions and avoiding discriminatory language. Any physical requirements should be directly tied to the actual needs of the role, not generic statements that could unnecessarily exclude qualified candidates.
Finally, match the tone of your description to your business. For example, a bank hiring a financial advisor will need a very different job post than a quirky retailer seeking a sales associate.
Posting your job is one of the simpler steps once you’ve nailed down the role and responsibilities. Still, clarity is key; an accurate job description helps ensure you attract candidates who understand the position and fit what you’re looking for.
Cast a wide net by posting on popular job boards like Indeed, Glassdoor, Monster and ZipRecruiter, and don’t overlook social media platforms such as LinkedIn and Facebook. Depending on your industry, niche job sites may also connect you with more specialized talent.
After posting your job listing and receiving applications, select several candidates to interview by phone. Don’t limit yourself to just one or two standouts; it’s smart to keep a shortlist in case your top choices don’t work out. Set aside at least 30 minutes per interview, and keep the process consistent to make comparisons easier. Use a uniform set of interview questions and give each candidate the same amount of time and attention.
Stay mindful of EEOC compliance by avoiding questions about personal characteristics protected under federal law, including age, disability, national origin, race, religion or family status.
Phone screen interviews are a chance to ask “get to know you” questions and gauge an applicant’s interest in the company and role. While you’ll touch on skills and experience, the main goal here is to confirm whether they can meet the job’s basic requirements. Their responses also reveal soft skills and whether they’re a cultural fit.
“Understanding your organization’s culture is key,” Carter said. “Bringing on an employee who is a high performer but has very limited social skills into an organization that has a close-knit environment could be a disaster.”
Your phone screens will help you narrow down the field to your top choices. For the next round, set aside about an hour for a formal interview, ideally by video call or, even better, in person. Use this stage to dig deeper with thoughtful questions that go beyond the basics you covered in the phone screen.
Once you’ve identified a finalist, it’s smart to run a background check with a reputable service. This extra step can help flag potential issues before you make the hire.
Once you’ve found the right candidate and completed background and job reference checks, extend an offer that clearly outlines salary, employee benefits and other key details. Moving quickly shows candidates you value them.
Some will accept right away, but many will want time to think — and possibly negotiate. Be prepared for requests around pay, benefits or flexibility, and aim for a fair agreement that works for both sides. If negotiations go beyond what your budget allows, be ready to walk away and revisit your runner-up. Depending on the back-and-forth, this step can take anywhere from a few minutes to a few days.
When your new employee accepts your offer, they’ll need to complete the necessary new-hire paperwork, including tax forms, HR compliance documents, and in some cases, an employment contract. Be sure to report their hiring to the government and get them set up in your HR software.
Onboarding isn’t just about forms, though. It’s one of the most important steps in keeping your employees engaged. Research from the Work Institute shows that employees who have a great experience in the first 90 days are 10 times more likely to stay long term than those who don’t. That makes thoughtful onboarding a critical investment in retention and productivity. [See our picks for the best HR software if you need to add this crucial platform.]
Carter noted that a strong onboarding process also includes a formal orientation. “A formal orientation should include a clear description of the company’s purpose, goals, mission and vision; the organizational chart and description of other roles and responsibilities for their co-workers; and a clear job description for that employee’s role,” Carter explained. “The orientation should also include an introduction to current staffers, a safety presentation, etc.”
Carter also recommends:
Despite its importance, only about 12 percent of employees say their organization does a great job with onboarding, giving businesses that excel here a major competitive advantage.
Nothing slows down a new hire more than waiting on equipment or logins. Ideally, you’ll think through their role in advance and make sure everything is ready on day one — from laptops and headsets to software access and security badges.
Some items can be ordered in minutes (like a work laptop), while others may require coordination across departments. Either way, planning ahead saves time and shows your new employee you value their contributions right from the start.
Proper employee training is one of the best investments you can make in a new employee. Every company’s training process looks different, but it should go beyond a quick orientation. New hires need time to learn your systems, meet their co-workers and get comfortable in their role.
Rushing this step can backfire, slowing productivity and increasing turnover, while thoughtful, structured training pays off long-term. The goal is to give your new employee the confidence and knowledge they need to succeed, not just for their first week but for the months and years ahead.
When small businesses start out, one person often wears many hats. But as your company grows, spreading responsibilities too thin can hurt efficiency, productivity and even the quality of your products or services.
Warning signs that there may be a problem include:
If you notice these patterns, it may be time to bring on extra help. Just keep in mind that some issues may be temporary, so take a few weeks to step back and confirm whether the problem is ongoing before making a hiring decision.
The quality of your employees has a major impact on your organization’s success, so hiring the right people is critical. Each employee should be a good fit for their role and a good cultural fit for your business.
Here are six primary reasons why making the right hire matters:
Conversely, the right hire can help streamline business processes, build stronger client relationships, boost morale and drive revenue. With so much at stake, prioritizing quality candidates is essential to long-term success.
Skye Schooley and Max Freedman contributed to this article. The source interview was conducted for a previous version of this article.