Jake Willis | CEO | Lulaway | mail me |
SMMEs play a fundamental role in the growth of a country’s economy. For South Africa, small and medium enterprises contribute significantly to the overall GDP and have continued to be in the front-lines of combating one of the biggest socio-economic challenges that affects the country; namely unemployment.
The unemployment crisis reached an all-time high of 29.1% third quarter of 2019 is a great concern as it hinders growth and development, and thus impacts the economy negatively.
Having productive staff
Small businesses have a lot to gain by hiring unemployed youth but is imperative for companies to ensure that they treat the process of on-boarding unemployed youths (whether skilled or not) carefully.
This is because for every SMME that succeeds, there many others that fail. For an SMME to succeed, it needs to have productive staff which add value to its operation.
A company looking to hire unemployed youths can:
- build capacity
- grow its own pool of talent
- invest in skills training and transfer
- play a central role in alleviating unemployment
Common hiring mistakes
But common hiring mistakes can have devastating consequences for a growing enterprise that ultimately cost them money, damages their reputation, compromises on quality and affects their brand positioning.
The prospects for SMMEs to grow exponentially over time are always dependent on the business decisions that are made within the company.
Some SMMEs become too eager for the end goal of increased revenue, increased profitability and increased capacity which places them at the top in the business world. This ambition can lead to important growth steps being neglected.
Common mistakes include:
- When on-boarding youths, many companies don’t dedicate enough time to training. Urgent business needs often mean training is neglected; leaving the new hire without the skills to perform adequately. Whilst learning on the job is imperative. A clear onboarding process is incredibly important and alleviates the risks ineffective employees.
- Quality over quantity also applies for SMMEs. Every new hire is a big decision for an SMME and will impact the business growth more than in a large corporation. An unsuitable employee drains resources, decreases morale and will impact the entire operation negatively. Spend time interviewing, doing background checks and thinking carefully before hiring new staff.
- Lack of clear job expectations, job descriptions and growth path. Many small businesses are vague about their actual needs and requirements. The new hire is left hanging, unsure of what is expected to succeed. They also do not know if there is room for growth, leaving them unsure of how committed they should be. To counteract this, a clear job description will allow for young employees to know what is expected of them, meet deadlines and transparency in evaluating performance.
- One of the top reasons for employee absconding is lack of clear communication channels. Communication lines are quite often ignored, and this has a negative effect on the company. A structured system of communication gives the company more credibility and transparency and promotes employee trust and longevity. This needs to be established clearly early on.
- Many companies tend to neglect doing reference checks and criminal checks for prospective employees with harmful repercussions. It is important to do these checks to ensure that people are who they say they are and that they have done what they say they done. There are dedicated companies which perform these checks for minimal costs. Eliminate unnecessary risks by making sure to do these checks, and calling a few references.
The prosperity of an SMME lies in making smart business and financial decisions. Be sure to wise hiring decisions by avoiding these mistakes that are commonly made when hiring Youth.