A few days ago, I met with a CEO who runs a small company with fewer than ten employees. He asked for advice on how to hire good people. He opened the conversation by saying that managing people is the hardest part, and then shared his experiences.
He had been betrayed by an employee he trusted, but on the other hand, a person he hired without much expectation turned out to be a key part of the company.
He said it’s so hard to predict people, and asked how he could hire the right ones.
I asked about his current hiring process. He said he posts job ads online, reviews resumes, and conducts interviews to make a decision. While this is a typical approach, I explained that small companies need to take a different approach, and offered some advice.
In large companies, hiring the wrong person might not be a big problem because they have hundreds or even thousands of employees.
But in a small company, each person is crucial. One bad hire can seriously damage the business.
It’s like a basketball team of five players—if one player is problematic, the whole team suffers. In small companies, you need to invest more time and resources to reduce the risk of hiring mistakes.
Especially with interviews, you need to be more thorough.
Instead of making a decision after just one interview, meet the candidate at least three times.
Besides formal interviews, spend time together having meals or coffee, and invite them to the office to show them the work environment. Think of this as a “dating period” where you get to know each other better. The more you meet, the better you’ll understand each other.
Additionally, if a specific skill is important, ask in-depth questions(over 5 Steps) about that skill.
If a candidate says they did some coding, ask what they built with that code. Then, ask follow-up questions, like what challenges they faced and how they solved them. This way, you can assess their real ability through five or more related questions.
For example, if they say they built and managed a shoe e-commerce website, ask which shoe sold the most. If they say running shoes, ask about the supply process for that product, how they communicated with the supplier, and if there were any pricing issues with the manufacturer. By asking these connected questions, you can find out how deeply involved the candidate was in the work.
In small companies, it’s even more important to be careful and thorough when hiring.
To hire the right person, don’t just rely on resumes and interviews. Invest enough time and energy to build a relationship with the candidate. Think of it as choosing a future family member like a son-in-law or daughter-in-law.