Is your business ready to hire extra employees?
It can be argued that employees are more valuable than customers. Without well-trained employees that are excited to be working for your business, you won’t see the consistent growth you desire.
If you’re ready to increase the productivity of your workplace with an employee that understands your value and culture, read on! We’re going to go through the small business hiring process to get you on the right track.
Employees vs. Contractors
You’ll first need to determine whether you need an employee or a contractor. It’s also important to know this difference because while you may have hired a contractor, their work and their use of resources could make them legally eligible for benefits and a salary.
There are many rules that also change depending on the state you live in, but here are some general notes:
- Work at a specific time and place set by the employer
- Complete tasks set by the employer
- Work for one company
- Use the company’s tools and resources
- Paid a salary or hourly wage
- Work wherever and whenever they desire
- Often work for multiple companies/clients
- Use their own tools, resources, and equipment
- Set their own terms of payment
Preparing to Hire
You’ll also want to be completely sure that your business can afford to hire a new employee for the longterm. You’ll also want to be sure that the role that you’re hiring for is well-defined–people need to know all of the specific tasks and duties they’ll need to be completing on a daily basis.
Hiring someone to do everything and anything throughout your office just isn’t efficient, can lead to burnout, and you’ll receive less qualified applications overall.
Lastly, you’ll want to be certain of your company’s values and culture in order to effectively choose the right people. You want to find and hire candidates that will be able to fit in.
Next, it helps to know all the legal requirements required of your business when it comes to taxes, forms, and more. Here are a few reminders to get you started:
- Register for your EIN on the IRS website
- File a W-2 form for employee to report their wages
- Withhold social security and Medicare taxes from wages
- Look up your state’s employment taxes
- New hires need to fill out a W-4 form and an I-9 form
- Find and purchase workers’ compensation insurance
- Hang required Department of Labor posters
The Department of Labor is also an important website to learn about your local laws and download free resources.
Setting Up Payroll
Next, you’ll want to set up payroll through a trusted provider that can make the process easier. Payroll providers can help you create pay stubs from the convenience of your mobile device, automate processes and reduce your overall paperwork.
More importantly, they’ll also aid you when it comes to complying with laws, filing for taxes, tracking sick days, paid time off, and more.
Choosing the Right Candidate
As you begin posting your job advertisement online, resumes and cover letters will start pouring in. At this stage, if you have a clear idea of the role you need to fill and your company’s values, this can help narrow down your choice of candidates.
If you’re overloaded with resumes, try these techniques as you go through each one:
- Check for a large amount of spelling/grammatical errors
- See if they addressed criteria you asked for in their cover letters
- Check if they meet the requirements for the job
There are some outdated red flags that you shouldn’t use to immediately disqualify candidates. For instance, depending on the job a bachelor’s degree may not be necessary and isn’t indicative of a person’s overall intelligence or skill.
Large gaps in work history could be for medical reasons or an economic downturn and also doesn’t indicate they wouldn’t be successful at the job.
When you’re conducting a job interview, you’re looking for three main things: the candidate’s skill, personality, and culture. For instance, even if they meet the basic requirements for the job, their personality may not fit with the culture of your workplace. This isn’t a good sign if you want a longterm employee.
You’ll also want to ask open-ended questions that reveal their skill-level and personality. Here are a few examples:
- What are your career goals?
- What are one or two accomplishments you’re proud of?
- How do you normally solve the problems you encounter?
- What was your normal day-to-day like at your last job?
As they answer your questions, pay attention to their body language. Consider if they arrived on-time or early to the interview and whether their temperament is pleasant and professional. If you like a job candidate but feel they lack some experience for the role, consider whether they would be able to adapt and learn.
When you find a job candidate you like, it’s your turn to make a competitive offer that they can’t turn down. Remember that the candidate is probably interviewing at multiple job sites–if you’re not able to provide them with the benefits and salary they’re looking for, they’re going to move on.
Consider your budget and the value that this new position will be providing. You can also ask other business owners or even research the industry standards for the particular job role.
The Best Small Business Hiring Process for Successful Employees
The small business hiring process is all about knowing the details about the job role you need to be filled, your company’s values and personality, and filling out all the right paperwork. It’s important that not only do you screen your candidates for both skill and personality, but you also offer a highly competitive employee package that ensures they’re being well-compensated for their work.
Want to read more about running a small business? Keep reading our blog for tips and tricks!
Author | Emily Forbes
An Entrepreneur, Mother & A passionate tech writer in the technology industry!