Paychex and Intuit surveys say that hiring is increasing in the small business industry. This is all well and good but the main concern for business owners should be whether they are hiring the best person for the job.

There are a lot of people looking for jobs but even though you are operating a small business that does not mean that you should just be contented with average performers. Small businesses have as much chance to hire terrific people as larger businesses do.

Here are some tips to get you started:

• Evaluate what particular skills are required for the job and its responsibilities. Knowing what you want and what you need from a prospective employee would save you time and money. As a business owner, you have to know what qualifies a person for the position you are planning to fill. You have to know which qualifications you need to prioritize in order for an easier pick.
• Consider your current employees for the position, if (and only if) they are suitable for the position. You have to remember though that there may be untapped potential with your current employees. Give them a chance to prove that they would be able to not only do the job but to excel in it before giving them the position or before posting a “help wanted” ad.
• Encourage recommendations from employees. There’s a high chance that your current employees know someone who would be ideal for the position you are looking to fill. Instead of directly advertising and employment agencies, you could start a “Refer-a-Friend” program wherein you can give small incentives to the employees once their referral passes the final stage of the recruitment process.
• Immediately sort the resumes of your candidates. Check their qualifications vis-à-vis the qualifications you need. You can have categories ranging from the best down to the completely unqualified. Sorting out their resumes would also make your search more efficient and less time-consuming. Look for red warning flags in your candidates’ resume. I’m talking about the general presentation of information, work history, length of employment and the like.
• Conduct a phone interview for the first screening. This method is cheaper and ultimately, if you don’t like their answers, you could go on to the next candidate.
• When interviewing a candidate, I find that an ideal prospect is one who makes good eye contact, very articulate and does not need prodding to further explain their answers. Of course, you should prompt them with questions but they should be the one who talks majority of the time. After all, they’re the ones being interviewed, not you.
• You should also give bonus points to candidates who know at least the background of your business. It would give you an idea how well-prepared your candidate is and it is also indicative that this person did not just happen to pass by, this is an applicant who is serious about working for you and knows what he/she is entering into.

Once you have chosen the best candidate, there are some final steps you need to do before making a job offer. Background checks, character or reference checks are all too important in whatever line of business you are in.