Best Hiring Practices for Small Businesses (With A Handy Step by Step Guide)

Hiring well is one of the most important investments you can make in your small business-but it can definitely be a headache, especially since often when we need to hire, we need to hire ASAP. A structured process not only saves you time and stress, but also attracts better candidates and helps you build a winning team. This step by step approach from us at Biztopia actually works-and has been compiled from over 15 years of hiring experience.

Step 1: Define the Role Clearly

A detailed job description is your foundation. According to LinkedIn, 72% of hiring managers say clear job descriptions are critical for attracting the right talent (LinkedIn Talent Blog).

• List key responsibilities and daily tasks in clear language

• Describe the required days/shifts for this role

• Specify must-have skills and experience vs. nice-to-haves

• Include what success looks like in the role and if there are set goals

• Share information about your business, highlighting your business’s culture and values

Need help writing a job description? A generic template can be downloaded from our Business ToolKit, or visit Custom Solutions for a tailored version.

Step 2: Promote the Opening Strategically

• Post to free job boards like Indeed, Google for Jobs, SimplyHired, Handshake (for students/recent grads), and your own website/social media

• Ask for referrals from your network—great hires often come from people you trust

• Add initial screening questions to the application to weed out applicants that cannot meet the essential basics of the role, such as:

  • Are you available to work the days/hours listed in the job description?

  • Are you able to reliably commute or work remotely?

Step 3: Screen Applicants Efficiently

• Review resumes using a simple checklist: required experience, skills, and red flags (need a checklist? Check out Biztopia's in the Business ToolKit).

• Send a preliminary digital interview (short written Q&A via email or a digital form) to top applicants. This is a crucial step for efficient hiring, as before you spend your valuable time doing in person interviews, this preliminary digital interview can filter out your ideal applicants from the...less than ideal applicants. These preliminary digital interviews can also indicate the applicant's talents with written communication and soft skills. Here are a few sample questions you could include in your preliminary digital interviews:

  • What interests you most about this role and working with our company?
    This reveals the candidate’s motivation and whether they’ve taken time to learn about your business.

  • Describe a time you solved a problem at work. What was the outcome?
    Problem-solving is a critical soft skill. This question helps you assess initiative and communication skills.

  • Are you available for the required schedule, and can you reliably commute or work remotely as needed?
    Clarifies practical fit and weeds out applicants who may not be able to meet the job's requirements.

    Using targeted digital interview questions like these can help you quickly identify candidates with the right mindset and skills—saving you time and improving your hiring outcomes.

Need a preliminary digital interviews for your hiring process? A generic template can be downloaded from our Business ToolKit, or visit Custom Solutions for a tailored version.

Step 4: Interview with Purpose

• Prepare consistent questions for all candidates (ensures fairness and easier comparison)

• Consider sample questions like:

  • “Tell me about a time you handled a difficult customer.”

  • “How do you prioritize tasks when everything feels urgent?”

  • “What do you enjoy most about working in this field?”

• During your interview, consider the applicant's facial expressions, body language, and cadence in answering your questions.

• Be sure to ask the applicant if they had a chance to learn about your company prior to the interview, and if they have any questions prepared for you.

  Need interview questions? Check out the Business ToolKit.

Step 5: Pre-Employment Assessment (If Applicable)

For many roles, a short skills test can be invaluable. Assessments help you verify that candidates actually have the abilities listed on their resume, and can also reveal strengths or gaps that might not come out in an interview. According to the Society for Human Resource Management (SHRM), 76% of organizations use some form of pre-employment assessment to improve hiring outcomes (SHRM).

Consider including practical exercises such as:

• Typing speed tests for administrative roles

• Grammar/spelling checks for customer-facing or writing roles

• Basic math or money handling for retail or finance positions

• Customer service scenarios for service industries

Keep assessments short and relevant to the job. The goal is to confirm core skills, not create barriers.

Biztopia can help design a custom assessment for your industry (Custom Solutions | Business Toolkit for generic templates).

Step 6: Second Interview (If Possible)

• Many candidates show their true personality in a second interview, especially with someone new. According to Harvard Business Review, multiple interviews with different people can reduce hiring mistakes by up to 25% (HBR).

• If you’re a solo leader, invite a trusted team member who will work with the applicant. Provide them with sample interview questions such as:

  • “What kind of work environment helps you do your best?”

  • “Tell us about a time you had to adapt quickly.”

  • “How do you like to receive feedback?”

Step 7: Background Check...and maybe reference checks?

• For roles involving sensitive information, money, or safety, a background check is wise. An affordable option for background checks is Checkr, and it is super quick and easy for both you and the applicant to complete.

• Checking references? Our honest opinion is that this is often a waste of time, because:

  • Applicants often provide references from friends and colleagues that won't necessarily tell you the truth about their work ethic

  • If it's a professional reference, most companies are only permitted to provide the applicants dates of employment with their company, and if that applicant is eligible for rehire. It's not often that a company can/will tell you about any challenges they had with the applicant, or details about their work ethic, so is it even valuable?

  • And most importantly, references are the biggest drain on your time in the hiring process. Calling and leaving voicemails, waiting for calls back-we've seen the hiring process delayed by weeks for this step. And if you do it for one applicant, you have to do it for all to be fair and equitable.

Our advice? Skip this step unless you are in a high security industry, have strict employment compliance needs, or are hiring for a high stakes leadership role. If you prefer to include reference checks, be sure to have your list of questions ready to go, and consider an email option for efficiency.

Step 8: Send an Official Offer

Once you’ve found the right candidate, move quickly with a clear, written offer. According to Glassdoor, candidates are 38% more likely to accept a job when the offer is delivered clearly and promptly in writing (Glassdoor for Employers). A written offer ensures everyone is on the same page and reduces the risk of misunderstandings.

Your offer should outline:

• Starting wage: Be transparent about pay to build trust.

• Benefits: List health insurance, PTO, retirement, or any perks included.

• Work schedule: Specify expected hours and any flexibility.

• Growth plan and next steps: Share how the employee can advance and what happens after they accept.

Make it easy for the candidate to accept or ask questions—respond quickly and be available for clarification. A prompt, professional offer helps secure your top choice before they’re hired elsewhere.

Common Hiring Bottlenecks & How to Avoid Them

• Vague Job Descriptions: Leads to unqualified applicants. Be specific and honest.

• Slow Response Times: Top candidates get hired fast. Set aside time each week for hiring and communicate promptly.

• Unstructured Interviews: Makes it hard to compare candidates. Use consistent questions and a scoring system.

• Skipping Skills Assessments: Can result in hiring someone who isn’t a fit. Use relevant, practical tests.

• Delays in Offer Stage: Waiting too long to make an offer can cost you great candidates. Prepare your offer details in advance.

Hiring the right team member is crucial for small business success, but the process doesn’t have to be overwhelming. Whether you’re hiring your first employee or building a growing team, these strategies will help you hire smarter and grow your business with confidence.

Ready to streamline your hiring? Biztopia’s Custom Solutions can help you build assessments and interview guides tailored to your business, and the Business Toolkit has templates for every step. Hiring doesn’t have to be a headache—set yourself (and your new team member) up for success from the start!

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