How to Set Up A Recruitment Process for Small Companies


Running a recruitment process for small companies can be daunting. There is a lot to consider, and you may have never hired anyone before. Fear not, this guide on how to set up a recruitment process for small companies is here to help.

What to Consider When Running A Recruitment Process for Small Companies

Maybe you’re the owner or HR person hiring for the first time at a startup. Or perhaps you’re a small business owner looking to grow your business or replacing someone. No matter why you’re hiring, there are certain questions that you need to consider.

Do You Need to Hire?

First of all, do you need a new person? Just because there is too much work for you doesn’t necessarily mean you need to hire someone on a full-time contract. Go over how much work there is to do and calculate how long it would take to do it each week. Can existing employees cover this?

If not, you don’t necessarily need to hire full time. You may be better off using a freelancer or hiring part-time. By using a freelancer or contractor, you can just pay them per project rather than a weekly salary. Considering other options before going ahead and hiring can save you large amounts of money in the long run.

What Type of Person Are You Looking For?

Before you do anything else, you should sit down and consider what type of person you’re looking for. If you are the HR person, do this with the hiring manager. What skills and experience would your ideal candidate have? Do you want someone who has a customer focus or is more analytical? It’s best to define your answers to these questions before beginning the hiring process.

Are You Ready to Hire?

Before hiring, you will need to take a look at the job description for the open position to make sure that it’s accurate and up to date. You may need to write a job description if it is a new position.

Also, decide who will recruit and make the hiring decision. Many small business don’t have an HR person, so it may be you as the hiring manager or owner. You don’t want to end up with everyone at your small company expecting to be part of making the decision.

Technical Steps to The Recruitment Process for Small Companies

Employee Identification Number

The first technical step you will need to undertake is getting an Employee Identification Number (EIN). You can apply for this online via the IRS website. You will need to fill in a few questions about your business and the structure of it. You will also need to enter a taxpayer identification number.

Legalities and Tax

Next, ensure that you are prepared for the tax requirements of hiring an employee in your state. These vary from state to state so we recommend getting in touch with the department of labor in your state to find out the requirements for you.

Most businesses will need to do the following:

  • Use IRS withholding tables to withhold taxes from the employee
  • File a W-2 form for every employee
  • Report on employment taxes
  • Take the taxes for Medicare and Social Security from the wages and pay some yourself

When it comes to legalities, again, you’ll need to look up what the local laws are for your business. Generally, though, you will need to report your new hire and apply for workers’ compensation insurance.

Selecting the Right Person

Now that you’ve dealt with the technical aspects of hiring, it’s time to hire. You can start finding candidates and selecting the right person for the role!

Job Advertisement

The first thing to do is to write the job ad for the role. This should be an engaging description of what you’re looking for, what the role entails, and the benefits of working for your company. Remember that candidates are choosing you as much as you’re choosing them, so it’s time to sell yourself.

Consider where job seekers will be looking when you post this job advertisement. There are plenty of online job boards that you can use at little or no cost. Perhaps you will consider using social media to advertise your job as well. Remember that posting jobs can be time-consuming, so you need to allow time to do this.


Once you’ve got applications for the role, you can go through the CVs and cover letters to see who has the right skills and experience for the role. Ensure that you reflect on the requirements in the job description and decide which candidates best meet those requirements.

Screening Techniques

Many employers are now using screening techniques such as aptitude tests to find out which candidates may be the best fit for the role. This recruitment strategy is a fantastic thing for small companies to add to their recruitment process because it can help you discover who has the right skills for the role in question.

Simply choose a test that tests for skills relevant to the position. For example, if you’re hiring for a data analyst position, you might test for numerical reasoning skills. This is a fantastic way of whittling down the number of candidates and deciding on just a couple to interview. Just select those who performed the best on the test. This can save you both time and money by not wasting time interviewing people who would be unsuitable for the position.


Now it’s time to meet your chosen candidates! As you’ve already weeded out unsuitable candidates through aptitude testing, these people should all have the right skills for the position. This means that the interview can be more about team fit and whether they would suit the company culture. These are potential employees, so consider carefully who you may enjoy working with.

Hopefully, this guide on setting up a recruitment process for small companies has been helpful for you. It may seem daunting at first but take it one step at a time and you can hire some fantastic employees for your company.


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