Small business recruiting has been solid over the past year and career opportunities are on rise, according to www.careerbuilder.com, the nation's largest online job network. A survey conducted in late 2005 indicated that the top three reasons hiring managers cited for recruiting new employees this year are to expand operations, improve customer service and support the launch of new products and services.

The trick for many small businesses is being able to find the right employee for the right job at the right time.

"We're seeing recruiting across the country definitely improving as more of the work force is retiring," said Mike Erwin, a senior career advisor at CareerBuilder. "We're seeing a tighter job market."

The healthcare industry is experiencing a labor shortage especially where nurses and rehabilitation specialists are concerned. In the hurricane ravaged Gulf Coast region, there's a need for more builders in the construction industry, as well as specialists in the information technology field.

What tends to be a surprise, Erwin said, is that of the 62 percent of workers that are satisfied in their jobs in 2006, 30 percent of them are still looking for another position.

"People are catching on that the labor market has shrunk," he said. "They're finding the work-life balance is giving you more."

This work-life balance includes having more flexible leave policies and being able to work from home.

Erwin noted that there's a new type of worker these days that's seeking different kinds of jobs.

"The work culture is so much more important now than it used to be," he said. "Companies are starting to realize there is a tighter labor market and are focusing on employees they need in the office. But they can change the work culture. Their ears are up and they're listening to what workers are saying. It's not about money -- it's about the whole culture and keeping the top talent in place."

Referrals are top resource

The recruiting challenge for small businesses regularly centers on networking, participating in various associations and continually wearing their recruiter's hat in any situation they're involved in.

"They also need to utilize their number one resource—employees and referrals so they can generate leads from them," said Angela Winterling, Fiducial's corporate recruiter who pointed out that Fiducial is working on revamping its referral program.

"Money long-term is not the only motivator for someone to refer people into a company," she said. "It's things they can experience that are morale boosters like trips or vacations."

Winterling has always considered recruiting grass roots for any growing business. She says recruiting enables a company to not only grow but more importantly to be productive and continuously perform its function.

"Recruiting is the people and the people are the business," she said.

Small businesses with numerous vacancies to fill should focus on more quality hires during their recruiting efforts so employees will be there more long-term to help grow the business. That includes taking the time to interview as many people as possible.

Companies should also find a way to test or measure the intangibles of the candidates under consideration. For example, are they solution-oriented or positive thinkers?

Regardless of whether candidates are in-house or recruited from the outside, Winterling maintains that the business owner should always take an active role when it comes to hiring.

"The moment they remove themselves -- that's an instant disconnect from the employee to the business," she said. "Being involved in the process gives them an opportunity to create an impression and make an impact. The owner should always be involved in the decision-making process."

Small business owners who want to stay ahead of the game should also try to stay in tune with how their employees are thinking and feeling.

"They should talk to their employees and be aware of their morale," Winterling said. "If you sense someone may be planning on leaving soon you need to follow your gut. Instincts in business are everything."

Protecting your business

Most small businesses do not have a human resources department or someone on staff to handle their recruiting efforts. For many companies, this is not something they do on an ongoing basis.

"It's something they have to kind to stop and learn and figure out what to do," said John Dooney, manager of strategic research for the Alexandria, Virg.-based Society for Human Resource Management (SHRM), the world's largest association devoted to human resource management.

Companies often place a lot of stock in employee referrals, which tend to be better general performers and stay longer on the job.

"The reason for that is because the referring employee tends to give a better realistic appraisal so expectations become met on the job and they tend to stay longer," he said.

Owners are reminded that they're still liable for any potential lawsuits during the hiring process if a candidate believes there's any type of bias or discrimination going on.

"It's important that no matter what size company you have that you keep documentation on the type of questions you ask candidates, ask the same questions to all candidates and keep track of the answers you're getting," he said.

Generally, Dooney said it's a good idea to have a detailed job description of every position you plan to fill so you can point to the absolute requirements in case there are any discrepancies about what qualifications you are seeking.

"It solves a lot of problems," he said. "You get the right person for the job and should anyone say it was unfairly handled, you have documentation to protect yourself from any disgruntled candidates."

Outsourcing recruiting efforts

When companies decide to outsource their recruiting efforts, they contact firms that hire human resources professionals to do hiring for them such as McLean, Virg.-based KnowledgeBank, Inc., a leading Washington, D.C., area provider of human resources management and consulting services.

"What we provide is that level of professional HR support that they could not afford if they went out on their own," said Tom Wimer, founder and president of KnowledgeBank.

Most companies aren't able to go this route -- nor should they -- because they don't need the support of a full-time HR professional.

"They need that guidance and hands-on support but don't need it all the time," he said.

Wimer launched his firm in 2003 when he saw there was a clear gap in the market that lay somewhere between the big consultancies and a lot of independent consultants. For KnowledgeBank clients, recruiting happens to come to the top of the list on two levels: How to structure the approach to hiring key senior management staff or key management team members. Then there's the approach to hiring other critical staff and team members in the business.

When Wimer and his team talk to small businesses they tell them they're not going to be able to go head-to-head recruiting-wise with the IBM and General Electrics of the world.

"You can't compete on a dollar-for-dollar basis, so look inside and understand those elements of their industry that's attractive to those people they want to draw in and leverage those," he said. "A small business can be more flexible and offer more opportunities such as that balance in life that big companies can't."

What's particularly appealing to candidates vying for a position in smaller companies, Wimer said, is they have a direct line to the success of the business. They have that line of sight that's closer to the nucleus of what makes the business work.

"People are attracted to the quality of management and leadership of a company -- that's what attracts them and keeps them there," he said.

Also high on the list is a desire for a flexible work environment, from teleworking to job sharing situations.

"People are looking for opportunities for learning and growth," Wimer said. "That doesn't mean they have to be promoted up the chain. They are looking for opportunities to keep them fresh and new challenges to enrich their lives."

When decision time comes in the hiring process, Fiducial's Winterling added that it's best to hire someone with the right personality who can be trained to have the skill set versus hiring someone based on their skills who doesn't have the right personality.

"You can't train someone over time to have the right personality," she said.

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STEPHEN PAREZO is the Media Manager for Fiducial.