Small businesses face extra challenges when trying to hire top talent. With fewer employees and limited resources, it is difficult to compete with the attractive compensation packages larger companies offer. Plus, with rising labor costs, small business owners need to know how to cut costs without cutting corners.
About a third (32%) of small business owners report job openings they can’t fill, and 45% report few or no qualified applicants for the positions they are trying to fill. Employers are struggling to find both skilled and unskilled workers. The shortage of workers leaves existing employees feeling overworked and burned out, which results in turnover and more unfilled positions.
The current labor market requires a shift in your talent acquisition strategy. Start using these 10 hiring tips now, and you will be on your way to filling vacant positions faster. They cover the whole process: the candidate experience, the job listing, pay and perks, where to post, sourcing, interviews, background checks and keeping the people you hire.
1. Prioritize the Candidate Experience
The candidate experience refers to how job seekers perceive and react to every interaction they have with your company during the hiring process. A positive candidate experience influences whether a candidate will accept or reject a job offer. A quarter of candidates decline job offers because of a poor candidate experience.
The candidate experience should be clear, fair, personal, seamless, and transparent throughout the hiring process. The first step to ensuring a positive candidate experience is evaluating your online presence and application process. Your website, social media presence, and reviews serve as the foundation for the initial stage of the candidate journey, called awareness and attraction. For example, if the careers page on your website is not mobile-friendly or updated, it will send a negative impression to job seekers.
Consider the following questions:
- Does your website accurately convey your values, mission, history, and company culture?
- Are you using consistent messaging throughout your website and social media posts?
- How can you prove that your company and job listing are legit?
- Do you have a simple application process that is mobile-friendly?
- Are the steps in your hiring process visible to candidates?
- Do you have positive or negative online reviews, and how can you improve them?
- Do you provide candidates with regular updates throughout the hiring process?
- Do you personalize your communications?
- Are you utilizing inclusive hiring practices and removing bias?
- Do you ask for feedback on the candidate experience?
The other major part of the candidate experience is being professional, respectful, transparent, and responsive in all interactions. Promptly inform all applicants of their status at every stage of the hiring process. Avoid ghosting applicants, which can cause reputation damage and further dwindle your talent pool.
2. Write an Effective Job Listing
It takes effort, knowledge, and skill to craft a compelling job listing that will entice job seekers to apply. The language, tone, format, length, and sections all impact how your listing will be perceived. It needs to be easy to skim with subheadings and bullets, while providing job seekers with all the information they need to quickly make an informed decision about applying. Aim to include the following nine sections in your listing: job title, job summary, responsibilities and duties, qualifications and skills, compensation and benefits, company details, working conditions, disclaimers, and legal language.
How well you craft your job description will determine whether you attract top talent, unqualified applicants, too many applicants, or too few applicants. The following items can make a big difference in the performance of your job listing.
Use Accurate Job Descriptions with Searchable Titles
A job listing needs to clearly and accurately list the job responsibilities and duties. Employers may mistakenly rely too heavily on templates or outdated job descriptions, failing to update and customize them to the actual work that will be done. How well a job description lays out the expectations for the role sets the stage for employee alignment and success. Misalignment will quickly result in failed hires and more employee turnover.
Many employers often overlook the importance of a searchable job title. The title has a major impact on whether your listing gets seen in search engines and on job boards. Common mistakes are using playful names, jargon, gender-coded words, numbers to represent levels, and too many words. Aim for a job title that has no more than three words and contains traditional job titles, not creative ones. For example, a job seeker knows to search for a social media specialist, but would miss the same job if the title was community wizard.
Choose Inclusive Language
When writing your job listing, choose language that is inclusive, neutral, and plain. A study published in the Journal of Applied Psychology in 2026 found that 84% of online job listings use ableist language, which sends a negative signal to applicants. Ableist language is frequently found in action words tied to movements or senses and buzzwords, such as fast-paced, stand out in a crowd, jump in with both feet, give a leg up, and blind spots.
Using non-inclusive language will alienate job seekers. If your answer to any of these questions is yes, then it is time to rewrite your job listings using inclusive language.
- Are you using outdated terms for positions that end with the word man, such as salesman, chairman, or fireman?
- Are you using masculine and feminine pronouns instead of gender-neutral pronouns (you, your, they, their, and them)?
- Are you using ageist language?
- Are you confusing job seekers by using abbreviations, acronyms, or jargon?
- Are you using ableist language?
Separate Required and Preferred Qualifications and Skills
You can attract a wider range of applicants simply by separating and redistributing qualifications and skills across two categories: required and preferred. If you have been including too many required skills, it could explain why you get too few applicants.
Instead of trying to find that perfect candidate who meets or exceeds 100% of the criteria, aim for the 70-30 rule in hiring. This means hiring candidates who meet 70% of the overall criteria and viewing the other 30% as teachable. Required skills would fall in the 70% part, while the 30% focuses on skills and traits that can be developed. It is helpful to make a list of the top qualities that you are looking for in candidates.
“Create a clearly defined job description and make sure everyone internally understands your non-negotiables,” said Jennifer Cresswell, Fractional Integrator / COO at Wolf’s Edge Integrators. “Keep in mind that you can’t get everything, no matter how many people you interview, so stop looking for a unicorn.”
So, what should you prioritize in your search? “As a Fractional Integrator, I advise my clients to consider cultural fit above skill set,” replied Cresswell. “Assuming basic knowledge and an aptitude to learn, skills can be taught and developed with the right support. Personality and core values cannot.”
3. Highlight Your Small-Business Advantages
In job listings and interviews, highlight any areas where you stand out from the competition. Some job seekers desire a job at a small business because they are frustrated with the bureaucracy found in corporate environments. Small businesses can often beat large companies on several elements, including flexibility, collaboration, and growth opportunities.
- Greater flexibility: Hybrid work has become the norm, with 88% of employers offering some hybrid options. Small businesses offer greater flexibility than big businesses, frequently permitting flexible hours and remote work, which is highly desirable to job seekers.
- Better growth and development opportunities: When employers support and personalize an employee’s growth and development, new hires are more likely to become long-term employees.
- Quicker career advancement: Without the constraints of corporate policies, small companies can be more flexible with internal mobility. This allows employees to try out different positions, obtain faster promotions, and develop well-rounded skill sets.
- More collaboration: Employees have more input and a greater influence on the outcome as they work more closely with other employees. They enjoy direct access to leadership and establishing close connections with employees across diverse fields.
- Increased responsibilities: At a small business, employees are more likely to handle a variety of tasks, have greater responsibilities, and gain hands-on experience more quickly.
4. Make Your Compensation Package Competitive
In order to attract and retain talent, you need to offer a competitive compensation package. As noted in the G&A Partners 2026 SMB Readiness Report, “40% of SMBs plan to increase hiring in the coming year, 41% plan to invest more in benefits and healthcare coverage, and 34% plan to increase compensation to hold onto the talent they have.”
Employees are looking at the value of benefits and perks in addition to pay ranges. Determine which meaningful and creative perks to add that fit your budget and company culture. Some free and low-cost perks include greater flexibility, extra time off, a shorter workweek, paid volunteer days, relaxation rooms, activities, reward programs, and local discounts.
“Small business owners can be more creative in the ways they elevate their opportunities as compared to larger companies or corporations that have more red tape,” said Cresswell. “This could include the flexibility to work from home all or part of the time, monthly team lunches, or even extra company vacation time that doesn’t count toward personal PTO. One marketing agency I worked with gave all employees off between Christmas and New Year’s Day.”
5. Utilize an Applicant Tracking System (ATS)
Employers can streamline the hiring process by using an applicant tracking system (ATS), which screens, tracks, and manages applicants in one centralized database. An ATS enables automation in several areas, including resume parsing, identifying top candidates, mitigating bias, interview scheduling, and candidate communication. This will allow you to significantly reduce time and labor, resulting in faster hiring decisions and a lower risk of losing top candidates.
6. Determine the Best Places to Post
It may take some trial and error to determine the best places to post your job listings. “There are tons of job boards out there and new ones that are specialized in different sectors/verticals being released every day. If there is one that focuses on your niche, try to use that one first,” said Justin Marcus, president and CEO of Gratus Staffing, which specializes in executive search for real estate, private equity, financial services, and healthcare organizations.
Regardless of where you are posting your opening, the posting needs to excite job seekers. “When you post the position, don’t just list the duties of the role, but instead make it a ‘marketing campaign’ to attract the talent you are looking for,” recommends Marcus. “Often, candidates are interested in opportunities for growth, job flexibility, on-site training, earning potential (including equity if possible), the mission, and the culture they will be working in.”
7. Build Relationships and Referrals
Many sources exist for building relationships to source candidates. Your business may benefit from working with local colleges, employee referral programs, or utilizing a staffing firm.
Colleges
Reach out to the colleges and universities in your area to let them know of your opportunities. As new college graduates worry about finding a job, it presents a valuable opportunity for small businesses to snag younger labor at a lower cost. In fact, small businesses plan to hire nearly 1 million new college grads in 2026. Additionally, by offering a college internship program, you can help college students develop the skills and experience for future success.
Employee Referral Programs
Formal and informal employee referral programs will help you discover top talent, but only if you have a positive employee experience. “How you treat your employees also holds a lot of weight with your local employer brand. Relationships are incredibly important, and often an overlooked way of finding talent is through the friends and family of your employees,” said Marcus.
In addition to employee referrals, there are several opportunities for building relationships to source new talent. “Industry conferences, trade events, and even networking with a competitor could all be good options when sourcing for certain roles,” said Marcus. “For harder to fill or more urgent positions, a search firm or staffing firm could make sense to partner with.”
Staffing Firms
What should you consider when utilizing a staffing firm? “When working with a staffing/search firm, make sure their expertise lines up with both your industry as well as skill set,” advised Marcus. As you evaluate the cost-effectiveness of using a staffing firm, remember to consider the impact of hiring the wrong person or a long delay in filling the position.
“Staffing firms can both bridge the gap on a temporary basis as well as help you find a plug-and-play candidate who would be able to start quickly with minimal training – but make sure you remember to do a thorough interview anyways,” said Marcus. “For executive-level roles in particular, a search firm can provide market mapping, a detailed report of candidates who would be available from competitors or relevant industries, in addition to finding the exact people who are looking for a similar position (even if not actively searching).”
Recruitment process outsourcing (RPO) is beneficial when you do not have an internal human resources (HR) department, want to hire gig workers, need to find specialized talent, or simply want to ease the hiring burden on your team to fill roles faster. Using an RPO will also help you better manage compliance and risks.
8. Optimize the Interview Process
Software will help you streamline the interview process, including scheduling and developing interview questions. Choose scheduling tools that integrate with your existing calendars and support candidate self-scheduling. When determining how many steps to have in your hiring process, be mindful of the time delays that will result from multiple rounds of interviews, assessments, and sample projects.
Employers need to use standardized interview questions to avoid bias. The quality of your interview questions will determine the insights you receive. Ensure you ask questions that help you evaluate how the candidates will fit in your company culture and to assess both hard and soft skills. Remember that candidates are also interviewing you and need to be allotted time to ask their questions.
9. Use a Background Check Service
A background check helps you make informed hiring decisions, verify information, mitigate risks, and comply with laws. It is recommended to utilize a background check service that provides quick and comprehensive reports covering references and records across several areas, including identity, immigration, employment, education, credit, criminal, and motor vehicle. Depending on your needs and the chosen vendor, there may be options for specialized services such as health screenings, drug testing, social media checks, and professional credential verifications.
10. Focus on Employee Retention
“Low-hire, low-fire” has become the operating strategy for many small businesses in 2026. Instead of backfilling positions when employees leave, many companies are choosing to redistribute the workload and use AI for efficiency. Whether you are reassigning current employees or hiring new employees, you need to take proactive steps to keep your talent.
Onboarding should start before the first day of work to reduce the risk of first-day no-shows. Brandon Hall Group research found that a strong onboarding process improves new hire retention by 82%. During the first six months of employment, 86% of new hires decide how long to stay at the company. Onboarding is a smart investment: HR leaders estimate a failed hire costs $25,000 to $50,000.
As you redistribute roles and responsibilities, job descriptions must be updated to provide employees with clear expectations. Employees need training and manager support when adjusting to new workloads. The relationship between a manager and an employee significantly influences whether an employee will stay or quit, with 90% of employees reporting that their boss impacted their decision to leave.
Exit interviews can help you identify why employees are leaving, so you can make changes to prevent additional turnover. Focusing on employee engagement, internal mobility, career advancement, and growth and development will help you turn your new hires into long-term employees.
Compare Your Options with SBG Funding
New hires take time to pay for themselves, and payroll comes due before they do. SBG Funding is a direct provider of revenue-based financing and a marketplace offering a broad range of funding solutions through an extensive network of lenders. A business line of credit can cover payroll while new employees ramp up, and working capital can fund a one-time hiring push. The online application takes about five minutes, decisions often come the same day, and applying doesn’t involve a hard credit pull.
Get Started Today:
- Fill out our online application.
- Speak with a funding specialist to discuss your options.
- Submit your documents and receive funding quickly.
Typical Requirements:
- Four months of bank statements
- Minimum FICO score of 500, six months in business, and $150,000 in annual revenue
FAQs
Lead with what a small business does better: flexible hours and remote work, faster advancement, more responsibility and direct access to leadership. Pair that with a competitive pay range and low-cost perks such as extra time off or a shorter workweek, and make the hiring process quick and responsive.
The 70-30 rule means hiring a candidate who meets about 70% of your criteria and treating the other 30% as skills you can teach. List the must-have skills as required and the rest as preferred, which widens your applicant pool.
HR leaders estimate a failed hire costs $25,000 to $50,000 once recruiting, training and lost productivity are counted. A clear job description, structured interviews and a strong onboarding process are the best ways to lower that risk.
