There are several reasons a business owner would want to hire for managerial positions outside the company. Outside talent bring fresh views on your business, and their creative ideas could improve efficiencies, save money and boost profits

They would also be free of bias by not knowing the staff, making it easier to question the norm and “we’ve always done it that way” thinking. Instead, they may ask “but are you operating the business the right way.”

However, there are pitfalls that business owners should be aware of when hiring from other companies. To that point, proprietors must conduct a very thorough job search and perform due diligence in every way possible to make a wise hiring decision.

The alternative could mean taking someone aboard who is not a good fit for your company, causing lost profits and plummeting staff morale.

An applicant who seems perfect on paper, but in an interview may prove to be unprofessional, clash with direct reports and give an off-putting aura to customers.

For instance, a poor manager may be overdemanding of employees, rarely give positive feedback, and berate staff in front of co-workers. They might also be short with patrons and provide bare minimum customer service.

This can cause a long-term problem with employee retention, attracting the best talent and losing loyal consumers. A glaring negative work environment could cause your best employees to depart, drive away top talent from applying, and lose current and potential future patrons through negative word of mouth.

The search for a great manager includes doing your homework. For instance, look for telltale signs that give pause in a resume. They might consist of basic spelling, grammatical and formatting errors that show an applicant is not careful with their work.

Another factor to consider in a resume is the timeframe that job seekers have worked at previous employers. Business owners might think that the applicant cannot hold a job and is ill-suited for your position. Yet, they may actually be a superb addition who changes jobs frequently because their value is in demand.

When conducting background checks, human resources departments usually only give the former employee’s start and end dates. But it can’t hurt to ask if they could provide additional information, such as their interpersonal communications and leadership skills.

In addition, exercise care if an applicant seems to be overqualified or if their background does not fit the position. The job market is incredibly tough these days, especially for college graduates.

Business owners should ask the potential new hire if they would leave as soon as a job in their field comes along. This could mean spending what amounts to fruitless hours in onboarding and training.

Making good decisions in hiring from the outside is much easier when following a comprehensive weighing of an applicants’ pros and cons, a widespread background search, smart resume analysis and well thought out interview questions.

Your choice will likely mean change in the workplace. It is incredibly important that business owners spend time planning their recruitment techniques. It could very well make a difference in increasing or losing profits.