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BUSINESS PLANS

Survey: Hiring Often Based on "Gut Feeling"
 

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Most small-business owners hire employees based on likeability, rather than qualifications, according to a recent survey.

In a survey of 500 small businesses nationwide conducted by The Price Group, a Texas-based marketing firm, 90 percent of owners said they decide whether or not to hire job applicants based on a gut feeling. Many reported having no formal hiring assessment process.

The reason is that most small employers find hiring assessments too costly, according to Bette Price, president of The Price Group. "Unfortunately, they fail to look at the high cost of making a hiring mistake," Price said in a statement.

In addition, 75 percent of employers surveyed said that didn't offer formal training for new employees.

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Last updated: Aug 13, 2007




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