Hiring: Building an Effective Process in a Small Company

This article covers the process. What you look for in a candidate is a separate article: Talent Selection Criteria.

1. Define the role before advertising it

Most failed hires begin with an undefined role. Before any posting, write:

• The problem the role solves — not a task list, but the outcome required.
• What will be achieved in 90 days? Three specific, measurable outputs.
• The skills genuinely required versus those preferred. A long requirements list deters excellent candidates.
• The level appropriate to the stage: do you need someone who executes with their own hands, or someone who builds a team? Confusing the two is a source of mutual disappointment.
• The salary range available — before interviews, not after.

A simple test: if you can't write the three 90-day outputs, the role isn't ready.

2. Sourcing candidates

In descending order of return:

• Team networks and referrals. Fastest and highest quality. Ask for them explicitly, with a specific role description rather than a general request.
• Direct outreach to people currently doing a similar role.
• Specialist communities and sector events.
• Public advertising. Widest reach and most time-consuming to filter.

In small companies, direct outreach usually outperforms advertising, because the best candidates generally aren't looking.

3. Make the company attractive on what you have

Don't compete with large companies on salary. Compete on what they can't offer:

• Direct impact: work whose effect is visible immediately, not after three approval layers.
• Breadth: learning across multiple areas in a short time.
• Ownership: a stake in a success they help create.
• Proximity to decisions and to the founders.

Be equally candid about what you don't have: stability, a mapped career path, and abundant resources. Candour filters the right candidate early and reduces quick departures.

4. Designing interviews

• A short, defined process: three to four stages at most. Long processes lose your best candidates — the ones others want too.
• Standardised questions across all candidates for the same role, so comparison becomes possible.
• A short practical exercise resembling the actual work — the truest signal of performance. Respect the candidate's time: don't request lengthy unpaid work.
• At least two evaluators per stage, with assessments documented before they discuss, to prevent one anchoring the other.
• A decision based on recorded evidence, not an end-of-day impression.

5. Reference checks

A frequently skipped step with one of the highest returns. Ask references specific behavioural questions rather than general impressions: how did they handle a difficult situation? What did they need support with? Would you hire them again, and why?

Hesitation in answering is information in itself.

6. The offer

• Move quickly. The best candidates have options, and a week's delay can cost you the hire.
• Explain the full package: salary, benefits, and equity where applicable — with a clear explanation of vesting and what the stake means in practice. An equity offer the candidate doesn't understand doesn't motivate them.
• Set expectations for the first months explicitly.
• Document everything in a compliant contract — see Labour Regulations.

7. Onboarding

The first two weeks determine the quality of the first year. The minimum:

• Access ready to tools and accounts from day one.
• A written 30/60/90-day plan with clear outputs.
• A buddy or reference person for small questions.
• A first small win within the first week — it builds confidence and belonging faster than anything else.
• A 30-day review to correct course early.

8. When a hire is wrong

Acknowledge it early. Keeping a wrong hire out of fear of the cost of correcting costs more: in performance, in team morale, and in management time.

Act fairly and clearly: candid feedback first, a time-bound opportunity to improve, then an orderly and respectful exit satisfying statutory requirements.

Common mistakes

• Hiring out of urgency to relieve temporary pressure.
• An undefined role with vague outputs.
• An exaggerated requirements list.
• A long interview process that loses the best candidates.
• Relying on personal impression without documented assessment.
• Skipping reference checks.
• Offering equity without explanation.
• Improvised onboarding with no 90-day plan.
• Deferring action on a wrong hire.

Checklist

• A role description with three 90-day outputs
• Required skills separated from preferred
• A salary range set before interviews
• Direct outreach and referrals, not advertising alone
• A three-to-four stage process with standardised questions
• A short practical exercise respectful of the candidate's time
• Assessments documented before joint discussion
• Behavioural reference checks
• A clear offer explaining equity and vesting
• An onboarding plan and a 30-day review

FAQ

How long should hiring take?
The shorter it is, the better your chance of winning the candidate. Three to four stages within two weeks is a realistic target.

Should I hire full-time or contract first?
A fixed-term engagement is a good way to test the role and the person before full commitment, provided it is properly documented.

How do I compete on salary?
Don't compete on salary alone. Offer impact, breadth, and ownership, and be candid about your limits.