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Human Resources

63% of Small Business Owners Rely Heavily on Word-of-Mouth to Find New Employees

As they struggle to find qualified employees, word-of-mouth tops the list of ways small business owners find new employees, topping both employee referrals and the internet.

It Is a Struggle for Small Businesses to Find Qualified Employees

Small business owners are struggling to find qualified employees to fill job vacancies despite the overall slow economy and reported high unemployment rates. Recent results from a survey of 601 small business owners by Gallup highlighted just how difficult it is for small business owners to find qualified candidates.

Of the small business owners who responded to the survey, 23% responded that it is “very difficult” to find the right qualified employees for their business, and 30% responded that it is “somewhat difficult.” That means that more than half of the small business owners who responded are having difficulty in finding qualified candidates despite the fact that, with high unemployment rates, there should be more candidates vying for each job vacancy.

When asked if the difficulty in finding qualified employees hurt their business over the past 12 months, only 27% responded “Yes.” That tends to suggest that small business owners are making the best of the situation they are finding themselves in. They are not letting their business suffer as a result of there being a shortage of qualified candidates to hire from.

But if so many small business owners are having difficulties in finding qualified candidates, it makes one wonder if they are looking for those candidates in the best places.

As the graphic shows, the majority of the small business owners who responded to the survey stated that a major method used for finding new employees is “word of mouth”; this is followed by “employee referrals,” the “internet,” “newspaper ads” and “recruiters.”

It would be hard to fault a small business owner for relying heavily on “word of mouth” and “employee referrals” as their most used ways of finding new employees, but if those avenues are not yielding results, maybe it is time to get more creative.

These Tools from Docstoc Were Created to Assist the Small Business Owner in Recruiting and Hiring:

Docstoc business courses: HR and Employee Management and LinkedIn Tutorial & Tools (two of more than 30 Docstoc business courses targeting small business owners and taught by experts).

Docstoc expert videos: Recruit with Twitter, Insider Tips for Successful Startup Hiring, Hiring … Most Important Decision.

Docstoc articles: Using a LinkedIn Company Profile for Recruiting, 8 Awesome Questions to Ask During a Job Interview.

Find all of the information you will need to start your new business venture, from evaluating the potential of your idea to hiring the best employees with this How to Start a Business ebook.

Source: Gallup

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