Entrepreneurship

SMEs are hiring before they know what they actually need

For a small business, hiring usually happens when things start getting busy. There are more customers coming in, more work to finish and not enough hours in the day. The owner is doing things that someone else should have taken over a long time ago. So the business starts looking for another employee. That is

SMEs are hiring before they know what they actually need

SMEs are hiring before they know what they actually need

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For a small business, hiring usually happens when things start getting busy. There are more customers coming in, more work to finish and not enough hours in the day. The owner is doing things that someone else should have taken over a long time ago. So the business starts looking for another employee. That is where things can get complicated. It is easy to say that the business needs another person. It is harder to work out exactly what that person needs to take off the team’s plate.

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The problem is not always a lack of people

An SME can have a busy team without actually needing another full-time employee. A salesperson might spend hours every week putting together reports. The owner might still handle customer follow-ups. Someone in the office might chase payments, answer calls and order stock. The business sees all of this and thinks it needs another employee. But before making that decision, it helps to look at where the work actually gets stuck. If nobody follows up sales leads, that is a different problem from having too many salespeople. If invoices go out late, the business might need someone to take over accounts rather than another general administrator. The more specific the problem, the easier it becomes to work out what kind of person the business needs.

SMEs often need employees to be flexible. That is part of working for a smaller business. But there is a difference between being flexible and watching a job grow every few months. Someone may start as an administrator. Then they start helping customers. Then they take over supplier calls. Then management asks them to update the company’s social media. Then someone asks them to help with sales. None of these requests seem unreasonable on their own. Put them together and the employee may now have four different priorities competing for the same eight hours. When things start getting missed, it becomes easy to blame the employee. Sometimes the real problem is that nobody decided what should come first.

Hiring someone will not fix everything

There is another trap for SMEs. A business can hire someone because the existing team struggles, but leave the same messy process in place. Take a business that gets more customer enquiries. The owner hires another salesperson. But the business still has no proper system for recording leads. Nobody knows who should call customers back. Old enquiries sit in someone’s inbox. The new salesperson has simply joined the problem. The same thing happens in administration, finance and operations. Sometimes the business needs another person.

Sometimes it needs to fix how the existing team handles the work. SMEs also need to look at how long the extra work will last. A company might win a large contract that creates six months of additional work. Another might need help with a specific project. That does not automatically mean another permanent employee is the answer. Depending on the work, a temporary employee, contractor or outsourced service could make more sense. For an SME, this matters because every permanent salary becomes another monthly cost. If the workload drops later, the business still carries that cost.

The job advert should come after the thinking

Before an SME puts out a job advert, the owner should be able to explain what the new person will actually do. Not just the title. Not just the qualifications. The work. What will they take over? Who handles that work now? What will the existing team focus on once the new person arrives? And what problem should the new hire solve? These questions can also make the recruitment process more useful. Instead of looking for someone who simply sounds good on paper, the business can look for someone who has dealt with the type of work it actually needs help with.

It also makes things easier for the person joining

A new employee needs to know what they are walking into. If they start as a salesperson but spend most of their time doing admin, frustration will likely follow. If the business tells them they will manage customers but later expects them to handle stock, suppliers and reception, the job may look very different from what they expected. SMEs cannot always offer big salaries or large teams. But they can be honest about the job. That matters because the wrong expectations can cause problems just as quickly as the wrong hire.

There is nothing wrong with an SME hiring when the business needs another person. In fact, needing more people can be a good sign. But the decision should not simply come from the feeling that everyone is too busy. Look at what takes up people’s time. Look at what gets missed. Look at what the owner still does. Then decide whether the business needs another employee, a different process or a different way of dividing the work. For a small business, a new employee is a significant expense. It is worth knowing exactly what you are paying them to do before you start looking for the person.

EntrepreneurshipAfrican startups
Vutomi Manzini

Reporting for Business Tech Africa on the funding, tools and strategy shaping the continent's founders and SMEs.

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