In many SMEs, hiring may take on a seat-of-the-
pants process: identify a need and hire for that
specific need with no immediate thought to the
long-term implications of the hire. Selective hiring
can help break down this mentality and focus the
hiring process more on long-term strategy. To
properly execute this practice, selective hiring
involves two components: (1) establishing jobspecific
requirements and (2) selecting candidates
based on how well they match those qualifications.
Within these selection practices, managers
should consider not only the task requirements
relevant for day-to-day activities, but also the
innovation-oriented activities they want the employee
to fulfill.
Armed with a specific job description and specifications,
SMEs should develop a selection process
that will identify candidates who best meet those
requirements. Many SMEs may utilize a simplistic
hiring process whereby individual managers are
solely responsible for the interview and selection
process and receive limited resources and guidance
for search activities. A process of this nature will
probably bias the selection process and restrict the
potential applicant pool. Adding a few simple requirements
to this process improves the likelihood
of finding a candidate that is a good fit. For example,
research has shown that using work sample tests and
structured (versus unstructured) interviews can enhance
the chances of hiring a better performer
(Schmidt & Hunter, 1998). Additionally, using panel
interviews (multiple interviewers for each candi-
date) versus a single interviewer can improve hiring
outcomes. Uber–—the fast-growing, ride-hailing
technology platform–—is a huge proponent of these
tactics. The company has applicants meet with
multiple managers and complete job-specific tests,
looking to assess an applicant’s ability to think on
the fly and perform the specific job being sought
(Lagorio-Chafkin, 2014). Small business leaders that
consider these suggestions can improve the selec-
tion process without overcomplicating it or adding
burdensome expenses