How to avoid a bad hire – and hire smarter instead

young woman sitting at table with employers
Image: Adobe Stock

For many businesses, few decisions carry more weight – or risk – than hiring. Get it right, and you unlock new momentum. Get it wrong, and you lose time, morale and money. Kate Jolly, Global Head of Talent at Employment Hero, shares how to hire smarter in today’s market.

Hiring often remains one of the most inefficient and outdated processes in a business. Many leaders are stuck juggling high volumes of unqualified applicants, unclear hiring criteria, and recruitment tools that simply don’t deliver.

At Employment Hero, we support more than 300,000 small and medium-sized businesses across Australia and beyond, and we hear the same frustrations time and time again: traditional recruitment processes are slow, disconnected, and leave too much to chance.

When recruitment is part of a broader, all-in-one Employment Operating System – one that connects hiring with onboarding, payroll, compliance and employee management – the process becomes faster, smarter and more effective.

ADVERTISEMENT

Customers using our AI-driven tools have reduced time-to-hire by an average of two weeks, with SmartMatch creating tailored candidate shortlists and enabling direct outreach to relevant jobseekers. Our Applicant Tracking System also integrates with all major job boards and taps into our own talent pool of more than 1.5 million jobseekers.

The businesses seeing the best results combine the right tools with the right hiring processes. Here’s what small business owners need to know.

The ‘normal’ way to hire is broken – and candidates feel it too

Small businesses are under pressure to move fast – but when it comes to hiring, speed often comes at the cost of quality.

According to recent Employment Hero research, 37 per cent of small businesses say hiring is one of their most time-consuming challenges. At the same time, nearly half are dissatisfied with the quality of applicants coming through. That’s not just frustrating – it’s a signal that the process needs to evolve.

For many businesses, hiring still looks like this: write a job ad, post it to a board, wait a few days, then manually screen through dozens (if not hundreds) of CVs – many of which don’t meet the brief. It’s slow, reactive, and often ends in compromise.

To hire smarter, you need to move beyond the traditional “post and pray” approach. Look for tools that actively surface relevant, ready-to-go candidates based on the criteria that matter to your business – things like skills, experience, availability, and location.

In a tight market, the businesses that succeed are the ones who remove friction, act quickly, and stay focused on quality from the start.

Don’t hire the CV – hire for fit

One of the most common hiring mistakes you can make is relying too heavily on a candidate’s CV – especially when it’s stacked with recognisable brand names.

It’s easy to assume that someone who thrived at a big-name company will do the same for your business. But the reality is, what works in a large, well-resourced enterprise rarely translates directly to the pace, ambiguity, and versatility required in a smaller team.

Instead of focusing on logos, you need to get clear on what success looks like in your context. What outcomes does this person need to deliver? Are you trying to grow revenue? Improve retention? Launch a new service line? When you define success in terms of outcomes – not just responsibilities – it becomes much easier to identify whether a candidate is the right fit.

By anchoring your hiring decisions to business impact, not brand pedigree, you’ll give yourself the best chance of finding someone who’s not just impressive on paper – but effective in your environment.

Culture isn’t fluff – it’s critical

In a small team, every hire has an outsized impact. That’s why cultural fit matters just as much as skills – sometimes more.

You’re not just looking for someone who can do the job. You need someone who can do the job your way – someone who thrives in your environment, adapts to your pace, and aligns with how your team works.

To make that happen, you need to be honest and upfront about your culture. Document your values, your rhythms, and your expectations – and share them with every candidate. Even a short overview can help you filter for alignment early.

At Employment Hero, every candidate receives our culture deck as part of the hiring process. It sets the tone, saves time, and ensures both sides know what to expect.

Hiring for culture isn’t about finding someone who fits in – it’s about finding someone who fits right.

Use AI to streamline the hard parts

Hiring shouldn’t take up all your time – but for many small businesses, it does.

That’s where AI can make a real difference. It can help you move faster, cut through the noise, and zero in on the right candidates – without the manual legwork.

One of the tools we’ve built to address this issue is SmartMatch – an AI-powered hiring tool that connects you with relevant, ready-to-hire candidates based on what you actually need. You choose the criteria – job title, skills, experience, location, availability – and SmartMatch does the rest, instantly surfacing a shortlist of candidates that meet your brief.

Because it’s part of Employment Hero, it works seamlessly with onboarding, contracts, payroll and compliance – giving you a faster, more streamlined hiring experience from start to finish.

Don’t rely on instinct, test for real-world ability

When you’re hiring under pressure, it’s easy to rely on gut feel. But instincts can be unreliable – and without the right checks in place, you risk hiring someone who interviews well but underdelivers on the job.

If you’re not confident assessing candidates, don’t go it alone. Reach out to your network. Ask trusted peers for referrals. Talk to people who know what good looks like in the role you’re hiring for.

And always include a practical step in your process. A short task – like writing a sample article, responding to a customer query, or preparing a mock proposal – gives you a far clearer picture of how someone thinks, works and communicates.

The goal isn’t perfection. It’s confidence. And the more evidence you have, the better equipped you’ll be to make the right call.

Hiring is changing – and that’s a good thing

The pressure to hire quickly isn’t going away. But the tools, processes and mindset you use can change – and doing so will make hiring feel far less painful.

This isn’t about throwing out everything you’ve done before. It’s about evolving your approach – moving from reactive to proactive, from guesswork to clarity, from posting jobs to finding matches.

Smarter hiring doesn’t just save time. It gives you back control. And when you’re running a small business, that’s one of the most valuable things you can have.


This article is brought to you by Business Builders in partnership with Employment Hero. Discover a smarter way to hire with the all-in-one Employment Operating System – tap into a talent pool of over 1.5 million candidates, reduce your time-to-hire, and make confident decisions with AI-powered recruitment.

Kate Jolly is the Global Head of Talent acquisition at Employment Hero. Kate has over 10 years experience hiring on a global scale for both startups and FTSE100 businesses. She's worked with candidates from graduate level through to senior leadership and is passionate about building high-performing, high-velocity recruitment teams.

NewsletterSignup

Big ideas for small business — straight to your inbox

Get the best small business tips, news and advice straight to your inbox! No junk, just real-world insights to help you grow.
Sign up now.

Now read...

Where businesses get it wrong in reducing psychosocial stress

It was 2:30 am when Priya’s phone buzzed….

How to make micro-shifting work for your small business

“Micro-shifting is about working in smaller, focused blocks…

There’s no I in team: Creating belonging in your business

Dave Banks looked at his engagement survey results,…

More from Business Builders

Where businesses get it wrong in reducing psychosocial stress

It was 2:30 am when Priya’s phone buzzed….

How to make micro-shifting work for your small business

“Micro-shifting is about working in smaller, focused blocks…

There’s no I in team: Creating belonging in your business

Dave Banks looked at his engagement survey results,…

How business owners can start the new year with HR in order

Why planning your people priorities now saves time,…

Why being inclusive is good for business, not just good to do

When you run a small business, you’re juggling…