Top 10 Hiring Mistakes Employers Make

Hiring the right people can make a world of difference in the success of your business. Yet, many business owners do not approach hiring the right way and often make the same common hiring mistakes over and over. When you are ready to hire new employees, be sure to avoid these top hiring missteps.

Top 10 hiring mistakes

1. Not looking into a candidate's background

No matter what candidates include on their resumes, you need to conduct some due diligence. If you are serious about specific candidates, make sure their work history is accurate, and check at least a reference or two. In addition, it's helpful to check their background. (Download a free background check permission form from the AllBusiness.com Business Forms and Agreements Center.)

2. Being overly influenced by advanced degrees

Candidates with plenty of letters after their names have certainly worked hard to earn their degrees. But there is no substitute for real-world business experience, and people often make the mistake of overlooking candidates with track records but no degrees. (Note: This does not apply, however, to specialized fields that require advanced degrees.)

3. Not having a long-term plan

Hiring someone to fill an immediate need can help you through a busy time. However, unless you're hiring someone on a temporary basis, you need a long-term plan for that employee beyond your immediate need, including how you plan to develop them, and how they in with your company's future plans.

4. Making promises you cannot keep

It can be a very costly mistake to make promises that are not well thought out. Know ahead of time what you can and cannot offer a prospective employee.

5. Hiring someone for all the wrong reasons

Unfortunately, this is a common mistake. Whether you're doing your cousin a favor or are impressed by the way someone looks or talks, hiring should not be done for the wrong reasons. Your focus should always be on finding the best candidate for the job.

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6. Not conducting a good interview

Conducting a good hiring interview is a skill that many people do not possess. It's important to ask the right questions to determine whether a candidate is right for the position and fits into your company. Check out How to Conduct an Effective Employee Interview for some helpful tips.

7. Not looking for a good cultural fit

In most businesses there needs to be rapport among employees. If you hire someone who does not fit in with the team's chemistry or your company's culture, you may find yourself with problems.

8. Not giving employees offer letters

Offer letters list all the important details, including the starting salary, bonus structure, start date, at-will status, and benefit information. (Download a free Offer Letter to Prospective Employee form from the AllBusiness.com Business Forms and Agreements Center.)

9. Not being prepared

One of the most common hiring mistakes employers make is not being prepared for the interview and hiring process. Know the interview questions you want to ask and the type of employee you're looking for. Also be ready to explain the position and answer questions about the company.

10. Expecting way too much

A common problem these days is looking for one person to save a sinking ship. An unrealistic, lengthy list of qualifications and background requirements—as frequently seen in employment ads—creates a situation in which you bring on someone you think can do a little of everything, but does not excel in key areas. Narrow your focus to the most important aspects of the position.