5 Hiring Tips For Small Businesses in the Current Market

Hiring tips for small businesses have never been more important. Many small business owners are realising that what worked even a year ago might not cut it anymore. From writing a compelling job description to filtering strong candidates from a pool of AI-polished applications, every step needs intention. Your ability to attract the right people is crucial. 

If you’re a small business owner gearing up for your next hire, you’re likely noticing that the rules of recruitment are shifting fast. While hiring has never been simple, we are now experiencing a unique set of conditions that are impacting how small businesses attract and select talent.

Small business hiring requires more than just posting a job listing and hoping the perfect candidate shows up. Whether you’re looking for your first employee or expanding your team to support growth, the hiring process now demands a clear strategy, refined communication, and an understanding of what today’s top talent is really looking for. 

This blog unpacks five hiring tips to help you make smarter, more confident hiring decisions and avoid the costly consequences of a bad hire.

Hiring Tip # 1: AI is Making Everyone Look Amazing on Paper, But Are They the Right Fit?

Let’s start with what’s changed the most: applications are looking sharper than ever. With generative AI tools at their fingertips, job seekers are submitting polished, professional-looking applications, including cover letters and CVs that can make anyone appear like a top-tier candidate.

But here’s the truth: the quality of the application doesn’t always match the quality of the candidate. The reality is, potential new hires might look amazing on paper but lack the actual skill sets, experience, or alignment with your business culture that you truly need.

What this means for small business owners:

• Your interview process must do the heavy lifting. It’s no longer just about skimming resumes or going with a gut feeling.
  
• Use structured interviews with behavioural and values-based questions that align with your core values.
  
• Include mini tasks, short written responses, or job-specific challenges during your hiring process to help identify quality candidates beyond the resume.
  
• Look for genuine engagement in their application – are they tailoring their responses or simply copy-pasting with the help of AI?

Remember: When your time and limited resources are stretched, every step of your small business hiring process must be deliberate and strategic because the last thing you want is to bring someone on who looked great on paper but wasn’t the right candidate in real life.

Hiring Tip # 2: Generic Job Ads No Longer Cut It

If you’re using AI to write your job ads (and let’s be honest, most of us are), you might be unknowingly blending into the crowd.  If you’ve ever asked AI to write one for you, chances are it gave you something that looked neat, professional and completely generic. 

And let’s be honest, being generic is the fastest way to lose the attention of the best candidates.

Here’s the issue: many AI-generated job ads sound generic. They lack personality. And in a sea of job posts that all say the same thing, candidates are scanning for something that feels different.

Your job ad is not the same as your job description. A clear and detailed job description outlines duties. A job ad needs to sell the opportunity and show what makes your business a great place to work.

To attract the right candidates:

• Use your own tone of voice. Candidates want to hear from a real person.
• Share what makes your business different. Whether it’s your flexible work culture, team retreats, personal development budgets, or remote work opportunities, highlight what matters.
• Make your job listing about the person, not just the role. Top talent is looking for a values-aligned team and a business they can grow with.

With so many job postings blending into the background on job boards and social media, your ad needs to be clear, compelling, and authentic. Following best practices around ad structure and voice will help your post stand out.

Remember: Great people aren’t just looking for a job. They’re looking for the right team and business to join. If you want to attract the best talent, your ad needs to speak to the person, not just the role.

Hiring Tip # 3: Speed Is the New Superpower

One of the most notable shifts in 2025 is that great candidates don’t stay on the market for long. Due to the ease of applying for roles today (thanks again, AI), proactive job seekers are casting wide nets. 

That means if someone great applies to your job, they’re likely applying to several others at the same time. If you wait days or weeks to get back to someone, you’ll likely lose them.

Here’s what this means for you:

• Remove “applications close on” language from your job postings. It slows down your momentum and can cost you a great hire.
• Be ready to review resumes as they arrive. Don’t wait to batch review.
• Know your hiring criteria before the applications roll in, so you’re confident when the ideal candidate appears.
• Respond to potential candidates quickly and move them through your interview process with momentum and intention.
  

The best employees don’t wait around, they’re proactive, organised, and in demand. If that’s who you want, your process needs to move just as quickly. 

Remember: Fast doesn’t mean rushed. It means being prepared in advance, so you can act decisively when the right person lands in your inbox. The best way to secure the best people is to act when it matters.

Hiring Tip # 4: Rising Salaries are Real, But Not a Dealbreaker

It’s no secret: salaries are rising across industries. Cost-of-living pressures and competition from large companies mean candidates are aiming higher. This can feel particularly challenging for small businesses operating with tighter budgets.

But here’s the good news: it’s not just about salary. Hiring the right person still comes down to value alignment, work environment, and opportunities for growth.

To stay competitive without matching corporate salaries:

• Focus on return on investment. What value should this new employee deliver in their first 3, 6, and 12 months?
• Streamline your onboarding process so team members can start contributing quickly.
• Emphasise the non-financial benefits: remote work, flexible hours, professional development, and the ability to make a real impact.
• Look at your existing team and systems. Are there ways to increase efficiency before increasing headcount?
  

Regarding salary transparency, we advise against including a salary range in your public job listing. If you’re not fully aware of current market rates, listing a figure could deter strong candidates or put you at a disadvantage.

Remember: Do your research, define your internal budget, and keep space for negotiation based on the value a candidate brings.

Hiring Tip #5: Reference Checks Still Matter. Don’t Skip This Step

With all the AI polish and interview prep available today, reference checks remain one of the few places where you can get honest insights into how someone actually shows up at work. 

Even if you can’t speak with a direct manager (because the candidate is still employed), a past colleague or team leader can offer a real perspective on communication skills, reliability, and initiative.

Here’s how to make background checks meaningful:

• Use a consistent set of questions when calling references.
• Focus on work ethic, collaboration, and how the person contributed to a team.
• Don’t skip the reference check just because everything else looks good, it’s one of your final filters before making a job offer.
  

Remember: Reference checks won’t tell you everything, but it often confirms (or challenges) what your gut is already saying and can be the difference between a failed hire and a successful hire.

Putting It All Together: How to Hire Smart in 2025

Hiring the right person isn’t just about filling a seat. It’s about moving your business forward with the right energy, skills, and mindset on your team.

Here’s a recap of what you need to focus on this year:

1. Sharpen your interview skills. You’ll need them more than ever to assess beyond the polished applications.
2. Create job ads that sound like you. Let your values and team culture shine through.
3. Be ready to act fast. Great people won’t hang around while you deliberate.
4. Think ROI, not just cost. Hiring is an investment. Approach it with clarity and confidence.
5. Take the time to check references. It’s a final filter that can give you peace of mind (or raise red flags).

Hiring well in 2025 isn’t harder; it just requires a little more thought and agility. If you want more help mastering the hiring process, especially in terms of interview structure and clarity, you might find my short course Kick-Ass Interview Masterclass a great place to start. 

And if you want personalised support, I’d love to guide you through your next hire inside my consulting programs.

Looking for more tools and insights to support your hiring journey? Start with resources below or tune in to the Big Dreams Great Teams podcast for practical, real-world strategies that help you lead better and build smarter. Because when your team is strong, your business can soar.

Resources

Dream Team Discovery Call

In this 45-minute call, we’ll dive into your current recruitment strategy, team structure, and hiring challenges to design a practical, tailored approach that fits your business. Whether you’re hiring contractors, employees, or remote team members, we’ll map out the best next steps for building the right team.

Kick-Ass Interview and Masterclass

Instant access to a pre-recorded 65-minute Masterclass and downloadable templates designed to help you confidently interview and onboard high-performing team members.

Here’s what you’ll master:

• How to define hiring criteria that align with your growth goals
• Proven interview structures and question types that reveal real capability
• Avoiding common hiring pitfalls
• Creating an interview experience that attracts top-tier talent
• Tools, templates, and strategies to repeat success with every hire