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Don’t get led up the garden path

Don’t get led up the garden path

Running a small business requires a range of skills. Smart owners know that they should take advice from others in areas that are outside their expertise. The problem is that unless you are careful you can find yourself getting bad advice from well-meaning people who may be operating from old paradigms. This is particularly true when it comes to the topic of staff. The result can be that you waste time, money and sleep plus potentially damaging your reputation with potential employees, customers and suppliers.

by Karen Schmidt | Dec 1, 2011

So what are some of the staffing myths that lead small business owners up the garden path? Here are the top seven I have come across.

Staffing myths

1. Use family, it’s cheaper

It may be cheaper in terms of wage costs but employing family members can turn out to be far more expensive in the long run than you might imagine. Giving directions or correcting errors is hard enough with a paid employee but when it’s your spouse/child/cousin it can be even more difficult. Plus, success depends on whether that family member has the right skill set for the job. It is false economy to let someone perform a role when they don’t really know what they are doing and other people have to compensate for their lack of skill.

2. Stick with casuals and contractors

This is a great way to have flexibility and avoid unfair-dismissal laws but it is not the best way to create a committed, engaged group of people who are passionate about helping your business to succeed. Sure, use short-term hires for tasks and projects that really are short-term but when it comes to ongoing work you are always better off with someone who has a greater level of commitment to the business. The only way you can get them to commit is if you commit to them by making them a permanent employee.

3. Hire people that are like you

In theory this sounds great but in practice it can limit the growth of your business and lead to insular thinking. Unless your customers represent a very narrow, easily defined demographic, having a range of people on your team can be an excellent way of customising your service offering. IBM learnt this one the hard way when they found that recruiting people who were identical just didn’t work.

4. Use young people, they cost less

I’m all for giving young people a start in their career but don’t employ them simply because you perceive they cost less. You may find it costs you more money. If a more experienced person is required they are likely to be more cost-effective in the long run as a young, inexperienced person will require greater training and more supervision to get them up to speed.