Hiring 101: Essential Steps Every Business Owner Should Take Before Hiring

Sara Lowell
Dec 30, 2024
4 min read

Updated: May 9

I’m sure you’re ready to hire but before you jump right into hiring someone, you need to make sure there are things set in place. Hiring the wrong person can cost your business thousands of dollars along with lost productivity, team morale and the time spent repeating the hiring process. You need a clear plan. Are you prepared to make the right choice when it comes to hiring the right person?

Let’s create your ultimate pre-hire checklist to ensure your next hire is a great asset for you and your team.

In this post, you’ll learn:

What Pre-Hire Preparation Matters
How to Define the Role Clearly
How to prepare internal operations
Setting a hiring budget
How to use interview techniques
And more

Why Pre-Hire Preparation Matters

I have seen it time and time again where business owners make the mistake of rushing through the hiring process. They thought that if they had someone in the seat to fill the position, they were better off than waiting for the perfect fit. This was costing them time by having to go back and fix mistakes and then navigating the challenges that came with miscommunication, but this should never be the case. It's a valuable lesson to learn but they have all said they would have rather been prepared than making these mistakes. We all know, great things don’t happen overnight, and this is why I am here to help you figure this out.

Preparation isn’t just about creating a job posting; it’s about laying a solid foundation for your new hire to thrive. Let’s break down how you can achieve this step by step.

Now, let's learn about the steps to what it takes to set up everything pre-hire.

Step 1: Define the Role Clearly

The first step in hiring is to understand exactly what you’re looking for. A vague job description leads to mismatched expectations and frustration for both parties. Here’s how to define the role clearly:

Write a Comprehensive Job Description: Detail the primary responsibilities, required skills, and day-to-day tasks. For example, if you’re hiring a social media manager, specify whether they’ll be responsible for content creation, analytics, or community engagement.
Consider Growth Potential: Think beyond the immediate needs of your business. What will this role look like a year or two from now? Highlight opportunities for growth to attract candidates who align with your vision.
Align with Company Goals: Ensure the role supports your broader business objectives. Ask yourself, “How will this position contribute to our long-term success?”

By clarifying the role, you’ll attract candidates who are not only qualified but also excited about the opportunity.

Step 2: Prepare Your Internal Systems

Hiring a great candidate is just the beginning. To set them up for success, your internal systems need to be ready. Without proper preparation, even the most skilled hires can struggle. Here’s what to focus on:

Standard Operating Procedures (SOPs): Create detailed SOPs for the tasks your new hire will handle. These documents provide clarity and consistency, making onboarding smoother.
Onboarding Plan: Develop a structured onboarding process that includes training, shadowing opportunities, and check-ins. A strong onboarding plan helps new team members hit the ground running.
Communication Tools: Ensure your team’s communication tools—like Slack, email templates, or project management software—are ready and accessible. Provide training on how to use these tools effectively.

Investing time in these preparations will save you countless headaches later.

Step 3: Set a Hiring Budget

Hiring isn’t just about paying a salary. To attract and retain top talent, you need to account for several expenses:

Salary: Research industry standards to offer competitive pay. Remember, underpaying to save costs can lead to higher turnover.
Training: Factor in the cost of initial training sessions, online courses, or certifications your new hire might need.
Software and Tools: Will this role require specific software subscriptions or equipment? Ensure these costs are included in your budget.

By planning your budget ahead of time, you’ll avoid unpleasant surprises and ensure a seamless hiring process.

Step 4: Use Structured Interview Techniques

Interviews are your opportunity to assess whether a candidate is the right fit for your team. Structured interview techniques can help you make more objective and informed decisions:

Prepare Consistent Questions: Develop a list of questions that evaluate both technical and soft skills. For example, ask scenario-based questions to understand how they approach problem-solving.
Assess Culture Fit: Look beyond qualifications. Does the candidate’s work style align with your team’s dynamic? For instance, if your team thrives on collaboration, a highly independent worker might struggle.
Use a Scoring System: Rate candidates on a standardized scale to reduce bias and focus on key attributes.

Structured interviews ensure you’re hiring based on merit and potential rather than gut feelings.

The Benefits of Preparation

Taking the time to prepare before hiring pays off in spades. You’ll:

Attract higher-quality candidates.
Reduce turnover and associated costs.
Create a smoother onboarding experience.
Build a team that supports your long-term goals.

Your next hire is more than just another employee—they’re an investment in the future of your business. By following this ultimate pre-hire checklist, you’ll be well-equipped to make a smart, strategic decision.