The Proven 5-Step Recruiting Process for Hiring the Right Candidate

Feeling stressed about finding the right person for your team? 

One bad choice can eat up your resources, damage team culture, and slow down your progress. 

But what if you could turn that gamble into a smart, strategic investment with a solid recruiting process? This is the goal of the best recruitment process. 

This blog offers you a clear, step-by-step plan to create a hiring process that saves your time and money, and brings you the ideal people to help your business succeed.

Why Your Hiring Process Matters?

For a growing MSME, hiring isn’t just an HR task. 

It’s an important business activity that defines your future. Unlike big companies, you feel the impact of every single employee on your productivity, culture, and bottom line. A strong employee recruitment strategy is important.

Moving from a reactive, “gut-feel” approach to a structured hiring plan is the key to sustainable growth.

1. Finds the Right People

Your company’s future depends on your staff. 

• A single bad hire can be devastating, creating a ripple effect that goes far beyond their salary. 
• It’s a big money covering ad costs, interview time, and training. If they leave, you have to start all over again. 
• The Indian Labour estimates that a bad hire can cost 30% of that employee’s first-year earnings.
• Beyond the direct costs, an employee who doesn’t fit in hurts productivity. 
• They not only fail to do their job well but also force your best employees to pick up the slack, leading to stress and burnout. 
• A toxic environment can even drive away your star performers, creating a cycle of decline.

2. Saves Time and Money

The solution to this mess is a well-planned recruiting process. 

• It’s a smart investment that makes it easier to find and assess candidates.
• A solid plan cuts down the risk of expensive hiring mistakes and boosts your confidence.
• It ensures you evaluate every candidate fairly based on data and evidence, not just a gut feeling. 
• When top candidates see a smooth, respectful, and organized process, it signals that your business is well-managed and values its people. 
• This helps you attract skilled workers even if you can’t match big company salaries.

5 Steps Recruiting Process to Hire the Right Candidate

Let’s cover the stages of the recruitment process to hire the right candidate. Following these recruitment process steps will create a strong foundation for your hiring success.

Step 1 –  Plan Before You Post

The biggest hiring mistakes happen before you even advertise the job. 

A little planning up front makes all the difference.

Create a Crystal-Clear Job Description

Job description as a marketing document. Its goal is to attract the best-fit candidates while politely discouraging the wrong ones from applying.

An excellent job description contains –   

• A Standard Job Title –    

Use titles people look for (e.g. “Digital Marketing Manager,” not “Marketing Rockstar”).

• Your Company’s Story –  

Briefly explain what you do and, more importantly, why it’s a great place to work. For an MSME, this could be the chance to make a real impact, a strong culture, or direct mentorship from you.

• Key Responsibilities –  

Write down the 4-7 most important tasks using action words. Instead of “Handles social media,” try “Creates and runs social media campaigns to boost brand engagement.”

• Qualifications (Must-Haves vs. Nice-to-Haves) –  

This part matters a lot. Be upfront about what’s necessary versus what’s just preferred. Setting the bar too high scares off great candidates, and being too vague attracts unqualified ones.

• Honesty –  

Be open about challenges like weekend work or pay ranges. This acts as a strong filter that values everyone’s time.

Set a Realistic Budget and Timeline

A hiring budget isn’t about limiting spending; it’s about investing wisely. For instance, if staff referrals bring you great hires on the cheap, you can put more money into that program.

• To make a simple budget, work out your Cost-Per-Hire (CPH). This key figure helps you improve your recruiting process over time.

CPH = Total Number of HiresTotal Recruiting Costs (Internal + External)​

• Be realistic about your timeline. A good recruiting process takes time. Often, at least six weeks.
• However, the best candidates are usually off the market in about 10 days, so your process needs to be both thorough and efficient.

3. Plan for a Fair and Unbiased Process

• A fair recruitment process isn’t just about doing the right thing. It leads to better, more objective decisions. 
• Ask the same core questions and use identical evaluation criteria for all applicants to a given position. 

Make your decisions based on interview data and skills assessments, not just gut feelings. 

This is to focus on what truly matters – a candidate’s ability to do the job.

Step 2 –  Source Your Candidates

Now that you’ve got your plan, it’s time to find your people. 

For an MSME with a limited budget, a smart, multi-channel sourcing strategy and recruitment approach is important. The top talent often isn’t looking for work but might be open to the right chance. This means you need to take the initiative.

Make the Most of Your Best Resource –   Employee Referrals

Your employee referral program should be the core of your hiring strategy. This method, often called referral recruitment, gives the highest ROI in terms of quality, speed, and cost.

• Stronger Candidates –  

Your current staff are the best screeners. They get your culture and what the job needs, so they point you to people who’ll fit in well.

• Quicker & Less Expensive –   

Job candidates who come through referrals get hired much quicker (about 29 days compared to 55 days for other methods) because they often skip the first screening. This helps you save money on advertisements and fees.

• Better Retention –  

Employees who join through referrals stay with the company longer. They start with a clearer picture of the company and already have a social connection.

You need a basic referral recruitment program with a clear reward, such as a cash bonus or extra paid vacation days.

Use Online Job Websites & Social Media

Digital platforms are necessary for reaching a target audience, but you must be strategic in your candidate sourcing strategies.

• Job Portals – 

Big sites like Indeed reach many people, but can swamp you with applicants. Write a very clear job description to cut through the noise. For special jobs, job boards that focus on your field make more sense.

• Social Media – 

This method helps build your company’s image as an employer. 

• LinkedIn works well for professional jobs and to find people not looking.
• Instagram or Facebook lets you show off your company’s vibe with real photos, videos, and what your team says. 
• Ask your staff to post job openings on their own accounts to spread the word further.

Try Other Easy Ways to Find Talent

Keep going! Many other methods can help you find great people.

• Your Company Website –  

A dedicated “Careers” page is a powerful, free tool. Attract candidates interested in your brand.

• Your Talent Pool –  

Connect again with previous applicants who showed promise. They already know about your company.

• Community & Customers – 

For local businesses, participating in community events or connecting with local colleges can be very effective. Even happy customers can be a source of referrals.

Sourcing Channel	Typical Cost	Speed to Hire	Quality of Candidate	MSME Suitability (1-5)	Key Considerations
Employee Referrals	Low (Bonus Only)	Very Fast	Very High	5	Highest ROI. Success depends on existing employee morale.
Niche Job Boards	Medium	Medium	High	4	Excellent for specialized roles. Targets relevant talent.
LinkedIn (Organic)	Low	Medium	Medium-High	4	Essential for professional roles and employer branding.
Company Careers Page	Very Low	Slow-Medium	High	4	Attracts candidates already interested in your brand.
Social Media (Culture)	Low	Slow-Medium	Medium-High	3	Builds long-term brand. Best for showcasing culture.
General Job Boards	Low-Medium	Fast	Low-Medium	3	High volume but often low quality. Requires strong filtering.
Local/Community	Low-Medium	Slow	Medium	3	Best for location-specific or entry-level roles.

Step 3 –  From Many to a Few (Shortlisting & Screening)

You’ve sourced a great pool of applicants through various candidate sourcing channels. 

Now, the challenge is to efficiently shortlist them into a small group for interviews. This stage is about guiding the best candidates through your recruitment process, not just trying to weed people out. 

The goal of shortlisting candidates is to focus your time on the most promising individuals.

Screen Resumes Quickly and Systematically

Manually reading hundreds of resumes is a nightmare for a busy owner. A systematic approach is essential for this phase of the recruitment and selection process.

• The Two-Pile Sort –   

First, quickly sort every resume into a “Consider” or “Pass” pile based only on the absolute must-have qualifications from your job description.

• Scan for Red Flags – 

In a focused 30-minute block, review the “Consider” pile for obvious red flags like unexplained job hopping or a total lack of relevant experience. This can quickly shrink the pile.

• Use a Scoring System –  

For the remaining resumes, use a simple scorecard to rank them against your key criteria. 

This adds objectivity and makes it easier to compare candidates fairly. Look for quantifiable achievements, not just a list of duties.

Use Tools to Make Shortlisting Easier

You don’t have to do this all by hand. Affordable tech can be a game-changer.

• Applicant Tracking System (ATS) –  

An ATS is software that automates and centralizes your hiring. It eliminates messy spreadsheets and lost emails by organizing candidate information in one place. 

Many platforms like Breezy HR and Zoho Recruit have free or low-cost plans perfect for MSMEs.

• Boolean Search – 

If you’re not ready for an ATS, this is a powerful, free technique. 

Use operators like “AND,” “OR,” and “NOT” in your email search bar to find resumes with specific keywords (e.g. “sales manager” AND “SaaS”).

Conduct an Initial Phone Call

The phone screen is a quick, 15-minute chat that acts as a final check before you spend time on a full interview. 

It aims to check key qualifications, make sure salary expectations match, and assess the candidate’s communication skills and real interest. How a candidate gets ready for this short call tells you a lot.

Stick to a basic plan –   

• Introduction (2 min) –   Introduce yourself and the role.
• Assessment (10 min) –   Ask a few key things like, “Why does this job catch your eye?” and “What pay are you looking for?”
• Their Questions (2 min) –  Let them ask you things. This shows how much they care.
• Next Steps (1 min) –  Tell them what happens next and when.

As you can see, a system is essential. This process is powerful, but implementing it while running your company is the real challenge. which is what our business coaching and mentoring is built to deliver.

Step 4 –    The Interview & Assessment

This is where you go beyond the resume to evaluate a candidate’s real-world skills, problem-solving abilities, and cultural fit. Making this stage objective is crucial to hiring the right person.

Carry Out Better, Structured Interviews

The most dependable way to interview is to use a structured interview. This means you ask every candidate for a specific role the same set of predetermined questions and score their answers on a standardized scale. This disciplined approach reduces bias and compels you to compare candidates based on evidence, not just how much you “enjoyed” them.

To put this into action, create a simple Interview Kit with –   

• Behavioral Questions –  

These look at past performance. Structure them using the STAR method (Situation, Task, Action, Result). 

For example –    “Describe a time when you had to meet a tight deadline. What steps did you take, and what happened as a result?”

• Situational Questions –  

These present made-up scenarios. 

For example – “Let’s say a customer is upset with our product. How would you deal with this?”

• A Rating Scale –  

For each question, spell out what a poor (1), average (3), and excellent (5) answer looks like. This helps you to compare candidates based on data.

Check Skills with Basic Recruitment Tests

Interviews can sometimes give the wrong impression. A quick hands-on skills test gives solid proof of whether a candidate can do the job. This type of recruitment assessment is invaluable.

• Work Sample Test – 

This type proves most useful. Ask job seekers to finish a small project that reflects their actual duties. 

For a graphic designer, request them to design a sample social media post. 

For an accountant, have them balance a sample report.

• Basic Skills Tests – 

For positions requiring specific abilities, use straightforward online quizzes to check things like math skills or Microsoft Excel knowledge.

These tests are best used to narrow down a small group of finalists, giving you concrete data to help you decide.

Optional –  What does Psychometric Testing mean?

• Psychometric testing for recruitment uses standard tools that measure thinking skills (aptitude) and character traits (behaviour). 
• They give unbiased data to help predict job success and whether they are fit for the team. 
• But remember, they should be just one piece of the puzzle in your overall review.

Step 5 – Pick and Make an Offer

This is the last step in the active recruiting process. 

It’s time to bring together all the info you’ve collected, pick the top candidate, and give them an offer they’ll want to take. 

How you handle this is your final chance to show what your company is all about.

Look at the Whole Picture When Choosing the Best Candidate

• When you choose who to hire, look at everything –  their resume, notes from the phone call, scores from interviews, test results, and what their references say. 
• For an MSME, don’t just focus on skills. Identify how well they adapt, how curious they are, and if they work well with others and put the team first. The goal is to find the best fit for your entire talent acquisition process.
• Talk to everyone on your team who met the candidate to get a full picture.

Make an Offer They’ll Want to Take

You might not be able to match big companies on pay. So, you need to sell the special perks of working at your small business.

• Growth and Impact – 

Point out that they’ll get to learn from you and have a chance to make a real difference in how well the business does.

• Work-Life Balance and Team Spirit –  

Showcase benefits such as adjustable schedules, work-from-home possibilities, and a tight-knit, encouraging group.

• Competitive Pay –  

While highlighting other perks, your salary and benefits package must still be fair and in line with market rates.

Always make the offer through a phone conversation first. This personal approach makes a big difference. Send a formal written job offer right after spelling out all the details.

Inform Other Candidates the Right Way

Never “ghost” unsuccessful candidates. 

• It’s bad form and hurts your brand. Everyone who puts in effort deserves an answer. 
• A candidate you reject gracefully today might reapply for another role, refer a friend, or even become a customer tomorrow. 
• For top picks, a quick, polite call works best. For the rest, a custom email does the job.
• Say thanks for their time, tell them you’ve picked someone else, and wish them well.

Your Action Plan –  Create Your Hiring Process Today

Use this checklist to build a simple, standardised Recruitment Process Document. 

This will ensure every future hire is consistent, fair, and efficient. The following phases of the recruitment process will guide you.

Phase 1 – Planning & Getting Ready 

• Define the business need for the role.
• Create a detailed job description with a clear EVP. A clear recruitment strategy plan starts here.
• Set a realistic budget and timeline. 
• Prepare a structured interview kit with questions and a scoring rubric.

Phase 2 –    Candidate Search 

• Announce the role internally and activate your referral program. 
• Post the job on your company’s careers page. 
• Post externally on 1-2 strategic channels (e.g., a niche board or LinkedIn). Activate your candidate sourcing strategies.

Phase 3 –    Screening 

• Quickly sort all resumes into “Consider” and “Pass” piles. 
• Conduct 15-minute phone screens with all “Consider” candidates.
• This stage is key to shortlisting candidates efficiently. These are important hiring process steps.

Phase 4 –    Interview & Assess 

• Set up structured interviews for the top 3-5 candidates.
• Give a hands-on skills test to finalists.
• Check references for the top 1-2 candidates.

Phase 5 –    Choose & Offer 

• Meet to review and make a fact-based choice. 
• Call to make a verbal offer. 
• Send a formal, written offer letter. 
• Respectfully inform all other interviewed candidates. These are your final hiring procedures.

 

Phase 6 –  Welcome 

• Get all new hire papers ready beforehand. 
• Plan a structured first week to set your new employee up for success.

Conclusion 

Recruiting doesn’t need to cause worry and doubt. A well-documented set of hiring procedures will bring clarity.

When you move from a messy last-minute approach to an easy, organised system, you boost your chances of getting the right candidate. 

This goes beyond just filling an empty chair. It’s about smart planning to build a team that will push your MSME’s growth for the long haul. Start now. 

Use the list above to create your plan and take charge of your recruiting for good. Your company down the road will be glad you did.

For more practical advice like this, browse more articles on hiring, management, and building a stronger, more profitable MSME.