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Growth Without the Grind.
KeyHire Solutions is an in-sourced service that combines organizational design and talent acquisition specifically for small business owners. Our proprietary process removes talent constraints, adds experience, and boosts capacity to your organization through diverse, value-based key hires, so you can focus on growing your business.
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Concerned that what got you here won't get you there? 60% of our work is new role development and acquisition. Leverage our experience acquiring leaders with the talent, experience, and capacity to optimize your leadership structure, and scale your business.
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Do you have an underperforming manager? Rely on our culture and performance assessment process to get clear on the experience, competency, and capacity necessary for high performance. With those clear targets in mind, we find you the right candidate, leaving you wondering "why didn't I do this sooner?"
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Stop wasting money on expensive agencies and time in endless interviews. Our comprehensive process includes an average of 1.8 interviews per hire and a 90%+ success rate.
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CEO, eVolve Brand Marketing
“In Recruiting it always feels like the candidate is a commodity - but when interviewing with you it felt completely different. I could tell you cared about me as much as your client. That really stood out to me.”
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CEO, Wood Finisher's Depot
“I had only been exposed to the do-it-yourself hiring method or the classic headhunter. The difference in approach has really worked for us and allowed our business to move forward.”
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“We've been able to double the size of our sales team in less than 12 months and are projecting 25% year-over-year growth.”
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The job market in 2025 continues to present unique obstacles for small business owners. While headlines highlight layoffs across major corporations, the reality for businesses with 10 to 50 employees tells a different story. According to recent findings from the National Federation of Independent Business (NFIB), small businesses are facing unprecedented challenges in finding and retaining quality talent. In a recent episode of the KeyHire Small Business Podcast, host and KeyHire Solutions founder Corey Harlock breaks down the latest NFIB data and reveals why traditional hiring approaches are no longer effective. For small business owners generating $5 to $25 million in revenue, understanding these market shifts isn't just helpful—it's essential for sustainable growth. The Current State of Talent Acquisition: What the Numbers Really Mean According to Harlock's analysis of the NFIB's latest findings, the data reveals some startling trends that every small business owner should understand. His breakdown of the report shows that 19% of business owners identified filling jobs as their most important problem. A striking 40% cited hiring challenges as their biggest concern, particularly in the manufacturing, transportation, and construction sectors. Additionally, 38% of owners reported rising compensation costs as a major business challenge. However, here's a crucial insight that many business owners overlook: despite widespread corporate layoffs, the unemployment rate remains at just 4.2%. This means the talent pool remains surprisingly shallow. "We need to change the way we think about this," explains Harlock. "I know a lot of people think, oh, they're laying off. There's going to be a lot of people out there. We can get some good people cheap. Please change that mindset. You're hiring a rental player." By "rental player," Harlock means employees who accept below-market offers out of temporary necessity but will leave as soon as better opportunities arise. As he explains it: "If someone's making $100,000 a year, and you are able to get them because they're unemployed for $90,000, that doesn't mean they're sticking with you. It means as soon as the economy gets better and their company calls them back and offers them $100,000, they're gone." The math is sobering but straightforward. In a strong economy, unemployment typically hovers around 3% to 3.5%. Once you factor in the unemployable population —those without relevant skills or experience —the pool of qualified candidates shrinks dramatically. This explains why businesses continue struggling with hiring despite economic uncertainty. Modern Workforce Realities: How Employee Expectations Changed the Game The Remote Work Revolution Continues The pandemic fundamentally altered worker expectations, and these changes have become permanent fixtures of the employment landscape. Today's job seekers frequently express preferences like: "Unless this job is 100% remote, I'm not interested." "I'm looking for a hybrid role where I can work 2-3 days at home." "Unless it pays really well, I won't consider an office position." The Trades Crisis Deepens Skilled trades face particularly critical shortages. Fire and life safety technicians, security specialists, and traditional trade workers are in extremely high demand. Even trade schools report lower enrollment than desired, creating a supply-demand imbalance that drives wages upward. This shortage creates a domino effect: as businesses compete for a limited talent pool, compensation packages naturally increase. It's not just about the base salary anymore—candidates evaluate total compensation packages, including benefits, flexibility, and growth opportunities. Business Growth Tips: Strategic Approaches to Competitive Hiring Understanding the Seven Candidate Drivers Successful hiring in 2025 requires a systematic approach to compensation negotiation. KeyHire Solutions has developed a framework called the "Seven Candidate Driver Comparison" that evaluates every negotiable element: Title and Career Progression - Candidates want to show upward mobility Base Salary - The foundation of any competitive offer Benefits Package - Often the hidden cost that derails negotiations 401(k) and Retirement Planning - Increasingly important for experienced workers Bonuses and Incentives - Performance-based compensation can differentiate offers Paid Time Off - Award based on experience, not tenure Schedule Flexibility - The new battlefield for talent acquisition The Hidden Costs of Benefits Many small business owners underestimate how benefits impact their competitiveness. Consider this scenario: you offer a candidate a $10,000 salary increase, but your benefits package costs them $500 more per month than their current employer. Suddenly, that attractive raise becomes a modest $4,000 increase—likely insufficient to motivate a job change. "Here's the kicker," Harlock notes. "If they're coming from a company that has amazing benefits, and I've seen this happen a lot, this is where small business owners are at a disadvantage." Avoiding Common Hiring Mistakes in Today's Market Small business owners often fall into predictable traps that sabotage their hiring efforts: The "Desperate Candidate" Myth : Assuming unemployed candidates will accept lower offers ignores market realities. Quality candidates typically have multiple opportunities. Slow Decision-Making : Taking weeks to make hiring decisions virtually guarantees losing top talent to competitors who move faster. Lowball Initial Offers : The days of negotiating upward from conservative starting points are essentially a thing of the past. Candidates compare offers side by side and choose the best package. Ignoring Candidate Experience : Poor interview processes can drive candidates away from even prestigious opportunities. A smooth, professional experience often outweighs brand recognition. Underestimating Competition : If you're excited about a candidate, assume other employers are too. Every qualified candidate is likely fielding multiple offers. Focusing Only on Salary : Total compensation packages matter more than base pay. Benefits, flexibility, and growth opportunities can make or break negotiations. Taking Action: Your Next Steps Audit Your Current Compensation Structure Research market rates for your key positions Calculate the true cost of your benefits package Identify gaps where you're losing competitive edge Streamline Your Hiring Process Aim for 5-10 business days from initial contact to offer Create a consistent, professional candidate experience Prepare decision-makers to move quickly on strong candidates Develop Your Seven Candidate Driver Assessment Create templates for evaluating each negotiable element Practice having compensation conversations early in the process Build flexibility into your offer strategy Invest in Your Employer Brand Ensure your company culture attracts quality candidates Develop clear career progression paths Create compelling reasons beyond compensation for joining your team Key Takeaways The hiring landscape has shifted, and successful small business owners must adapt their strategies accordingly. The current 4.2% unemployment rate means qualified candidates remain scarce, despite corporate layoffs making headlines. This reality demands a more sophisticated approach to talent acquisition. Effective hiring in 2025 requires speed, strategic thinking, and comprehensive compensation planning. Businesses that master the Seven Candidate Driver framework while maintaining efficient processes will consistently outperform competitors still using outdated approaches. Most importantly, remember that hiring is now like a competitive sport. "If you're excited about someone, you're talking to someone and you're very excited about getting them on your team, I can guarantee you they are talking to at least one other employer," Harlock emphasizes. The businesses that thrive will be those that recognize this new reality and adapt accordingly. Whether you're looking to scale your operations or simply maintain your current team, understanding these market dynamics is essential for long-term success. Ready to transform your hiring strategy? KeyHire Solutions specializes in helping small businesses navigate these complex challenges. Listen to the full discussion on overcoming 2025 hiring challenges and discover how to build the team your business deserves. Check out our sponsor: Career Spring, Careers launch here: https://careerspring.org/ Connect With Us: KeyHire LinkedIn KeyHire Facebook KeyHire YouTube KeyHire Instagram KeyHire Solutions, Be Our Next Success Story: https://www.keyhire.solutions/testimonials Contact Corey: corey@keyhire.solutions
Every entrepreneur experiences the painful realization that those who contributed to building the company may not be equipped to elevate it further. This acknowledgment is one of the toughest realities in business growth, yet it's essential to identify when your leadership team has hit its limit to ensure ongoing success. In a recent episode of the KeyHire Small Business Podcast , host Corey Harlock from KeyHire Solutions sat down with Neil Katz, CEO and founder of Exceptional HR Solutions , to tackle this challenging topic. Their conversation revealed essential insights for business owners navigating the complex world of team assessment and strategic hiring. The Reality of Scaling a Small Business Leadership The harsh reality is that what got you here won't get you there . As Neil Katz explains, "When you have five or 10 employees, that same leader in many cases does not have the capability, skills, or background to get you to 100 employees or 1,000 employees or from a million in revenue to 50 million." This isn't a criticism of your current team; it's just the reality of business growth. The skills required to manage a $2 million operation differ dramatically from those needed to run a $20 million enterprise. Your neighbor's cousin, who started with you in the garage, may have given everything they had, but their experience ceiling might not match your business's trajectory. Companies usually transform their entire organization—people, structures, processes, and systems—each time they triple in size. Some exceptional individuals can scale through multiple growth phases, but they're rare. Most leaders hit their natural ceiling, and recognizing this early can save you months of frustration and lost revenue. Overcoming Hiring Challenges: Experience vs. Potential A major hiring challenge for small business owners is the ongoing discussion about whether to hire based on potential or experience. KeyHire Solutions philosophy breaks this down simply: you're either hiring for potential or experience, each with distinct ROI timelines. Potential comes at a lower upfront cost but requires 12-24 months before you see returns. You'll need comprehensive training programs, mentoring resources, and significant time investment. Experience costs more initially but delivers almost immediate ROI. Mistakes are made when companies invest in potential, anticipating the ROI that comes with experience. This leads to a revolving door of letdown hires, as new team members may begin with enthusiasm but soon fall short of expectations. For companies under 50 employees, Neil strongly advises prioritizing experienced talent: "Do we have bandwidth, the resources, and the capacity to train this individual that's 12, 24, 36 months behind where I need them to be? You need to focus on your clients, your investors, your strategy, and the financial components of your business." How to Scale a Business: Strategic Talent Acquisition Approach The Investment Mindset Smart business owners understand there's ROI on talent. When you buy experience in the open market, you're making a strategic investment in your company's future. Yes, it's more expensive upfront, but the alternative – hoping untested potential will develop quickly enough to meet urgent business needs – often costs more in lost opportunities and delayed growth. Beyond the Job Description Effective talent acquisition involves more than just aligning skills with job requirements. It's essential to find candidates whose soft skills, leadership abilities, and core values resonate with your mission. Naturally, they should meet the standard criteria, possessing the necessary competencies, skills, and background. However, consider these expanded factors to ensure they have the qualities that will align with your business and team. The Three-Option Framework When transitioning existing team members, Corey recommends offering three clear paths: Mentorship and development under new leadership Lateral movement to better-suited departments Graceful exit with full support and references While most people initially choose options one or two, the reality is that many eventually move to option three as they struggle with the transition. Avoiding Common Leadership Assessment Mistakes Over-Elevating Too Quickly: The biggest error is promoting people multiple title levels beyond their capabilities. That reliable machine operator who became a supervisor shouldn't automatically become the Director of Operations without proper development. Establish clear competency levels and KPIs before promoting any individual. Letting Subjectivity Rule Decisions: Personal relationships cloud judgment. Neil emphasizes the importance of objective evaluation: "Take the names out. If you were just evaluating the roles without a name, evaluate and ask yourself, is that role achieving the functions I need today and at least the next 24 months ahead?" Equity Complications: Offering ownership stakes to early employees creates additional complexity when changes become necessary. Plan exit strategies for equity holders well in advance, before you need them. Ignoring Red Flags: Most business owners admit they've known about performance issues for months or years before taking action. Trust your instincts and address concerns promptly rather than hoping they'll resolve naturally. Waiting Until Crisis Mode Don't wait until you desperately need new leadership to start looking. Network continuously and build relationships with potential future team members well before you need them. Taking Action: Your Next Steps Conduct an Objective Team Assessment Remove names and evaluate each role based purely on performance metrics Assess whether current capabilities match 24-month business projections Identify skill gaps that could constrain growth Define Your Growth Requirements Map out the leadership capabilities needed for your next revenue milestone Determine which roles need immediate attention versus future planning Create clear job specifications that go beyond basic qualifications Build Your Pipeline Start networking now for future leadership needs Connect with industry professionals who could join your team in 1-3 years Maintain relationships even when you're not actively hiring Develop Transition Plans Create clear communication strategies for team changes Prepare multiple scenarios for existing team members Document processes to minimize disruption during transitions Invest in Current Talent Where Appropriate Consider executive coaching for promising leaders Provide targeted training for specific skill gaps Realign responsibilities to match individual strengths better Key Takeaways The journey from startup to a scaled business requires an honest assessment of your leadership team's capabilities. While it's emotionally challenging to recognize that loyal, hardworking team members may not be equipped for your company's next chapter, addressing these issues proactively prevents larger problems down the road. Remember Corey's insight: "You can't run a $30 million a year business on a $2 million process." The same principle applies to people – you can't scale to $25 million with a leadership team built for $5 million operations . Success in small business leadership development comes from balancing loyalty to existing team members with objective assessment of business needs. Sometimes the kindest thing you can do is help someone find a role where they can truly excel, even if that's not with your company. The entrepreneurs who successfully navigate these challenges are those who act decisively while treating people with dignity throughout the process. They understand that building a scalable business sometimes requires difficult decisions, but they approach those decisions with clarity, compassion, and strategic thinking. Listen to the full conversation with Neil Katz on this podcast episode for more detailed insights into building teams that can scale with your business. Learn more about Neil Katz: https://www.exceptionalhrsolutions.com/ Check out our sponsor: Career Spring, Careers launch here: https://careerspring.org/ Connect With Us: KeyHire LinkedIn KeyHire Facebook KeyHire YouTube KeyHire Instagram KeyHire Solutions, Be Our Next Success Story: https://www.keyhire.solutions/testimonials Contact Corey: corey@keyhire.solutions