Blog Post
How To Hire Employees For MSMEs

How To Hire Employees For MSMEs

An entrepreneur starting out on their own is a big step and he requires a lot of supporting hands who share his vision and help take the business ahead and be instrumental in its growth. This is especially true in the case of an MSME where an entrepreneur definitely needs the support of other people working for the enterprise to make the business successful. In order to add people to the team, entrepreneurs need to hire employees. Hiring employees is a big step and one that needs to be given due importance and carried out with much thought. This is because, the right kind of employee can bring about a sea of change into the entreprise. 

The right employee can bring about a positive influence to the business and can contribute significantly towards the productivity and growth of the business. The environment of the work-place is also dependant on the employee, where the right employee can make the place a pleasant place to work in while an employee who is not positive or correct for the work can make the environment unpleasant and spread bitterness with their attitude. 

There are several other benefits of hiring the right employee, which include-

  • The right employee will create a successful employment relationship which will influence the business too and make it a pleasing experience.
  • The right employee will enhance the work culture at the MSME.
  • Improved work culture via the right employee will further lead to high employee morale and this will lead to positive forward thinking planning for the business and help accomplish the challenging goals of the business. 
  • Hiring the right employee also warrants that the most is made out of the time and energy that the employees are investing in the relationship with the entrepreneur and the business, thus leading to growth.
  • The right employee can influence the business in terms of cost as well as on an emotional level. 

Therefore, hiring the right employee is important and the process of hiring employees must be carried out carefully, keeping the goals of the business in mind and checking whether the potential candidates can relate to the goals and can associate with it. 

There are several factors that throw light on the process of how to hire employees and keeping them in mind will make the task at hand easier.  These factors cover the process before interviewing employees, during the interviews and after selecting the successful candidates. 

How To Hire Employees For MSMEs?

Before actually learning how to hire employees online or in person, it is vital to be prepared for the process and this preparation is considered as part of the process. 

Define The Job

The first step before looking to hire employees is to define the job available clearly and in detail. This requires the entrepreneurs to conduct an analysis of the job. This is because the job analysis enables the entrepreneur to collect information about 

  • the duties
  • the responsibilities
  • the necessary skills 
  • the expected outcomes
  • the work environment of the particular job 

Thus providing a clear understanding of what the job entails, in the mind of the entrepreneur and while looking for employees suitable for the job. Therefore, the information from the job analysis is fundamental to developing the job description for the new employee. 

The job description also assists the entrepreneur to plan their recruiting strategy for hiring the right employee.

Devise A Recruiting Strategy

Once the job is well defined and described, the next step is to have a recruiting strategy in place for hiring the right employee. The plan to recruit the correct person must be preceded by a meeting to plan the strategy and this meeting as well as the team must involve the existing employees who are looking to hire someone in their department or under them. There is even a need for a hiring manager, apart from the key employee in the concerned department. In the meeting, the strategy to be followed while hiring must be discussed and then followed during the actual recruitment process. If meeting in person is not possible or while looking to hire employees online via recruitment platforms, the teams that have worked together previously, especially while hiring an employee, can complete this step via email.

The recruiting strategy must involve having a list of the goals and objectives of the business and the job available. It also includes listing the following criteria that the business or the job requires for the potential candidates to fit into the said job- 

  • Qualification
  • Skills
  • Experience
  • Characteristics

The strategy can even involve listing the questions to be asked based on the job profile and enquiries to be made in order to check whether the candidate is suitable for the job and has the right attitude, qualifications, skills, experience and demeanor to fit into the business and the job profile. 

Also, with the introduction of several new platforms, especially digital platforms and websites, to help entrepreneurs hire employees online, the recruiting strategy must also involve the method chosen to hire, that is, whether via online platforms or through traditional methods. Apart from listing the criteria, the way the questions will be asked will differ if selecting candidates online. 

Thus, planning and having a strategy in place is the next step in learning how to hire employees.

Conduct Interviews

The next step involves conducting the actual interviews to select the right employee. Often, the candidate might appear perfect on paper but in person might be found unsuitable for the job, so conducting an interview is important. In case of hiring employees via online portals, a written test along with a telephonic interview can be conducted to check the suitability of the candidate. The interview must include asking all the right questions as previously strategized in order to check the overall compatibility of the candidate for the position available. Additionally, all the documents submitted by the chosen candidates must be screened and background checks must be conducted to ensure authenticity. This includes checking with the references provided as well. Also, while conducting the interviews, the salary expectation can also be one of the criteria to be discussed at the interview stage itself, in order to avoid misunderstanding in the future.

Hire The Right Candidate

After conducting the interviews and screening all the chosen candidates, the team or the entrepreneur can offer the job to the candidate found to be most suitable for the position, one who will benefit the business and bring with them the qualities required to take the business forward. The decision to offer the job to the most suitable candidate must be taken carefully and once the decision is made and the terms and conditions are discussed, the employee must be given a formal appointment letter. It is important to get the paperwork done and therefore entrepreneurs can go through an appointment letter format to ensure that they employ the right person in the correct words and make their terms and conditions clear in the letter itself. 

how to hire employees


Acquaint Employee To The Business

Once the job is offered by informing the candidate via an appointment letter, the next step is to acquaint the new employee to the business, the work culture and the method of business. While acquainting them to the business, it is important to ensure that the employee is aware of all the terms and conditions of the business and agrees to them. Every business has a certain way of operating and a standard code of conduct which is unique to the business and must not be discussed or disclosed elsewhere. Several businesses also restrain from discussing their salary details outside of the business and expect the employees to also follow the same. Thus, for every business it is important to have a non-disclosure agreement in place and this must be signed by every employee while joining the business. The non-disclosure agreement is a legally binding contract that establishes a confidential relationship and the party (employee) signing the agreement agrees that sensitive information they may obtain will not be made available to any others. Entrepreneurs can have an employee non-disclosure agreement format at hand to ensure that all the important terms and conditions of the agreement are there in the letter and none of them are skipped. The non disclosure agreement is an equally important part of hiring an employee.

Employee relieving letter 

During the time when an employee wants to quit the organisation, they are offered a relieving letter. A relieving letter is a formal way of communicating with the employee that the resignation has been accepted. The relieving letter is also very important because when a new employee joins, the relieving letter is proof of their last work experience.

how to hire employees

These are some of the steps to be considered while hiring an employee for the business, whether a small enterprise or a medium scaled business, whether hiring for the first time or several times earlier, whether hiring online or in person. The process of hiring an employee for the business, starts much before actually meeting the likely candidates and involves procedures to be completed after having selected the desired candidate as well. Entrepreneurs who might be new to the process of hiring an employee or just starting out on their own, can benefit from the steps mentioned here or approach deAsra for assistance while looking to hire the right employees for their business. The right employee makes a significant difference to the business and must thus be selected carefully.

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