A Guide To Hiring Tech Employees For Small Businesses

Hiring tech employees is a significant decision for small businesses and SMEs. The cost and consequences of making a poor hiring decision can have a much greater impact on small businesses compared to larger organisations. Therefore, small businesses may choose to only secure one new tech employee at a time, and they may delay recruitment until absolutely necessary.

Comparatively, start-ups will make these decisions more frequently, but each decision to recruit should be made in a shrewd and manageable way that fits with their high-growth plans.

In this guide, we will explore the following:

• Hiring tech employees for small businesses vs start-ups
• Tech support options for small businesses
• Signs that small businesses are ready to hire tech employees
• Hiring contract vs permanent tech employees
• Top tips for small businesses hiring tech employees

Hiring tech employees for small businesses vs start-ups

Whilst small businesses and start-ups could have a similar headcount and tech needs, there are distinct differences in the way they need to approach their tech recruitment.

Hiring tech employees for small businesses

Depending on their needs, hiring tech employees within small businesses is often limited to the following:

• Initial hires after outgrowing the support an IT service provider can facilitate
• Replacing existing tech hires
• Occasional hiring of permanent or contract resources to lead projects or periods of higher demand

For small businesses which depend on technology to generate revenue, such as online retail platforms, hiring several specialists and generalists to support and manage their tech infrastructure will be essential. However, most small businesses will only need a smaller number of permanent generalist IT professionals who can handle business-as-usual work and engage contractors for major business transformation or migration projects, or to cover those on leave.

Hiring tech employees for a start-up

Start-ups are business ventures that focus on providing new products or services to the market, with the aim of creating highly scalable businesses. They may receive funding from venture capital firms, angel investors, or crowdfunding as part of their growth strategy. As they scale, this can mean that start-ups require multiple tech hires within a short period.

The recruitment needs and goals within a start-up often evolve as its headcount grows and its projected scale of growth changes. Many initial hires for start-ups often come from within the individual founder’s network and are either previous employees, colleagues or known associates. Hiring employees for start-ups that are outside of that immediate network for the first time is a significant step.  Start-ups need to be cautious about making hires who can support their ability to scale at pace.

Tech hiring and support options for small businesses

As technology becomes a larger part of business operations, increasingly plays a vital role in generating revenue and connects businesses with customers and clients, having consistent IT support is crucial. There are three main ways businesses can access tech support:

• Third-party supplier (IT service provider) – by outsourcing IT services, small businesses can rely on an organisation to manage their tech needs. This tends to be a relatively flexible option with the potential to scale resources up and down. However, IT service providers do not tend to be dedicated to just one customer (small business), therefore, they may not always be immediately available or work to the exact same timescales.
• Contract recruitment – by using an IT contractor, small businesses and start-ups still have a large amount of flexibility over contracts and the amount of time the contractor will work for them. This scenario is best suited for short-term projects with clear endpoints and deliverables.
• Permanent recruitment – hiring tech employees permanently is a fantastic option for small businesses and start-ups that need consistent support and require a dedicated employee to respond to issues quickly and understand their entire tech ecosystem in detail.

Signs that small businesses are ready to hire tech employees

In both small businesses and start-ups, knowing when to hire the first permanent IT employee or the next one in team is an important decision. Some of the key signs that specific in-house support is needed include:

• The cost for outsourcing tech support is more expensive than a permanent salary
• Consistent everyday tech support is needed
• The growing headcount relies heavily on technology to do their work
• There are multiple complex system requirements that need a centralised overview

Any of these signs could mean that hiring tech professionals could offer greater benefits for small businesses or start-ups, rather than outsourcing to IT service providers.

Hiring contract vs permanent tech employees

Deciding whether to hire a permanent or contract professional is a major consideration for small businesses and start-ups when recruiting tech talent. However, in order to make this decision, organisations need to understand exactly what they need the tech professional for, including clear aims and deliverables of hiring someone.

They also need to take into account whether they will need the professional’s skills in a year or two, or if they are only necessary for a project with a defined end date. Using a contractor can offer small businesses flexibility to take on talent when and how they need it to fill skills gaps, but permanent employees will be heavily invested in the business and help to drive internal culture and growth.

For start-ups that are aiming to scale rapidly, contractors can bring specialist expertise to enhance and deliver new products and services. However, permanent tech employees can help start-ups establish the culture and team stability that is vital during periods of rapid growth. They can also assist in shaping the direction of tech departments, prioritising innovation and progress.

Top tips for small businesses hiring tech employees successfully

Whilst start-ups and small businesses may have slightly different priorities when hiring tech talent, the main methods for improving hiring procedures remain the same.

• Develop a workforce strategy

Workforce strategies are an essential tool for small businesses and start-ups. In some cases, small businesses will not have major growth plans, however, workforce strategies still play an important role in providing understanding of the direction of tech teams, what professionals may be needed in the future and how to manage team progression.

For small businesses and start-ups with projected growth in their tech departments, a workforce strategy can be a lifeline in ensuring that hiring is manageable and the chances of making a poor hiring decision are reduced.

• Evaluate compensation

When hiring tech employees in small businesses, particularly for high-demand roles, such as cyber security or data, it’s important to understand how to attract these professionals effectively.

Small businesses and start-ups are not always able to compete with big players when it comes to employee benefits and salaries for tech hires. But by seeking insights from specialist recruitment agencies, small businesses and start-ups can gain a clear understanding of up-to-date market rates, in-demand skills, and what their competitors are offering.

• Implement a diverse recruitment strategy

A diverse recruitment strategy focuses on removing biases and barriers throughout the hiring process.

For small businesses that may struggle to compete with larger companies offering cutting-edge project opportunities or extensive benefits, attracting top talent can be challenging. By addressing biases, such as by learning how to better support neurodiversity in tech and understanding how to retain women in the workplace, organisations will have access to a much broader talent pool. Inclusivity can also reduce employee turnover, as well as strengthening team performance.

• Engage a recruitment agency

When hiring tech employees in small businesses or start-ups, engaging a specialist recruiter can help to make the process significantly smoother. They can help with:

• Reducing time-to-hire – for small businesses and start-ups, time is precious. It’s likely there will not be substantial internal talent team in place, so many leaders and back-office staff will need to dedicate large amounts of time to the recruitment process to secure the right talent. This is costly and inefficient for small businesses.
• Ensuring compliance – hiring IT contractors compliantly may be new to small businesses or start-ups. Therefore, a recruitment agency can offer businesses support in navigating IR35, contract negotiations, and other regulations.
• Access to networks – specialist recruitment agencies will have large networks of great tech talent that many small businesses and start-ups will not have access to if they have not previously hired in that area or technical specialism before.

Looking to hire tech employees in your small business or start-up? VIQU IT has vast experience in helping companies attract great permanent and contract tech professionals and sustaining manageable workforce growth. For more information, get in touch with our team here.