A recent survey carried out by the Equal Opportunities Commission found that a failed or wrong recruitment left small businesses anywhere between £1,000 and £28,000 out of pocket. With so much at stake financially, can you really afford to get your recruitment strategy wrong?

For start- ups and SMEs with a small team of employees, every new appointment will have a big impact on the company and its future prospects.  That is why it’s essential to take the time to work out a detailed people strategy before you start hiring.

We would advise businesses to start 2017 with a clear strategy, agreed at board level, which can be revisited throughout the year as the needs of the company evolve. Here’s our top tips to include in your plans:

Culture club

The culture at smaller companies is very important, and it often grows organically in a way that suits the business and its people. Before you consider bringing new people into the fold, be clear about your culture so you can recruit like-minded candidates that will share your values and thrive in your working environment.

Agree the profile

If you have identified the need for a person to come in and strengthen your team, get the personal specification and the job description absolutely right. What are the objectives of the position, what skills and experience will the right person need to do the job well? Think about where someone who fits the bill might be working now and what you could offer to entice them to your company. Doing this leg work up front will ensure you get the person who is perfect for the job.

Use your own resources first…

Before you pick up the phone to a recruitment agency, explore your own networks and resources to find suitable candidates for the role you are recruiting. Reach out to your peers in the industry and put the word out that you are hiring. You may even know people you can approach directly with an offer that’s too good to refuse.

…But be prepared to invest if you need to

If you have exhausted your own resources and are still drawing a blank, bring in a recruitment partner to help you search the market for the right person for your vacancy. This may take some upfront investment, but this will be a drop in the ocean when compared to the financial impact of not finding someone to fill the business-critical role you are advertising.

Stick to the plan

You may meet candidates through the recruitment process that aren’t right for the job they are interviewing for, but you’d love to offer them a different position. Stop! If the need or the budget isn’t there, don’t recruit on a whim. Sticking to the strategy will keep you focused on the needs of the business and save you money.

Even if you think you may only need to recruit a small number of people in 2017, it’s worth taking the time to put an effective strategy in place to ensure you find people that will help your company to grow. When you discover great talent, they will drive your business forward, pushing you onto that next stage of research or making the breakthrough you’ve been waiting for; the wrong person could cost you dearly and its really not a risk worth taking.