Results day: Why Small Businesses Should look Beyond Grades when Hiring

With A-level results announced across the UK last Thursday (13 August), small businesses are being urged to look beyond academic grades when assessing potential new recruits. 

The call comes from leading company formation agent 1st Formations, which says that while qualifications can provide an indication of a candidate’s knowledge and ability, qualities such as adaptability, curiosity, problem-solving, and a willingness to learn can be just as valuable for small and growing businesses.  

This year, 320,505 students received A-level results, with 63.9% of students taking three subjects. Across England, 28.3% of A-level results were graded A or above, while 78.1% were graded C or above. Mathematics was the most popular A-level subject, with 107,300 students receiving results. 

Graeme Donnelly, founder and CEO of 1st Formations, said:

“Qualifications have their place when you’re hiring, but they shouldn’t necessarily be the whole picture. For a small business, you need people who will work hard, adapt quickly, take on new challenges, and learn as the business evolves. 

“Many successful founders didn’t follow a traditional path into entrepreneurship. They built businesses by learning, adapting, and solving problems along the way, and these are the same qualities that can make someone a valuable addition to a growing team.” 

Recent figures suggest that progression into university is no longer following the steady upward trend seen over previous decades. While there were 2.86 million students at UK higher education institutions in 2024/25, numbers fell by 1.3% in both 2023/24 and 2024/25, marking the first decline in almost a decade. 

The higher education entry rate among UK 18-year-olds has also fallen from a peak of 38.2% in 2021 to 36.3% in 2025. While university remains an important route into employment, the figures highlight that an increasing number of young people may take different paths after receiving their A-level results. 

Graeme added: “For small businesses, it’s important to look beyond formal qualifications and consider what candidates can bring to the table.  

“Apprenticeships, vocational training, employment, and entrepreneurship can all help people develop valuable skills and experience, while qualities such as initiative, resilience, and a willingness to learn can be just as important in a growing business.” 

1st Formations has shared four common mistakes for first-time employers to avoid: 

1. Skipping compliance steps: Failing to complete right-to-work checks or registering for PAYE late can result in penalties, so make sure all necessary steps are completed before a new employee starts. 
2. Hiring too quickly: Rushing the recruitment process can lead to a poor fit and higher staff turnover. Take time to thoroughly interview candidates carefully and assess whether they have the right skills and potential for the role. 
3. Poor record-keeping: Keep payroll, tax, and employment records organised and securely stored from day one. Good record-keeping can help you stay compliant and make managing your first employee much easier. 
4. Don’t neglect training: Poor training can lead to new hires becoming confused or under-utilised. Prepare training in advance and follow through on it to ensure your any new hires reach their full potential.