Small Business Hiring 101: How to Hire Your First Employee
You’ve started up a small business and for a while, everything is going great. Then you start getting bombarded with too much work. Soon, you’re so behind that you’re getting angry phone calls from your customers. It may be time to start the small business hiring process.
It’s not too hard or complicated but if you fail to do the correct paperwork and follow procedure, it could land you in a world of trouble. You don’t want that. That’s why we’re here to tell you about the process.
To help you hire your first set of employees the correct and legal way, check out this quick guide.
1. EIN and Other Forms
First things first, you can’t start your hiring process until you’ve applied for an Employee Identification Number. It’s a number that the IRS can use to identify your business and make sure you’re keeping up with your taxes.
They are simple to apply for and it’s free of charge. On top of your EIN you’re also going to have to have your I-9 and W-2 forms in order. Once you have all this it’s only a matter of registering for state taxes.
2. Employee Misclassification
When you are filling out all your paperwork make sure that you don’t misclassify an independent contractor as an employee and vice versa. An employee is someone who is hired to work in your company and is compensated with wages and other benefits.
Independent contractors own their own business. You’ll hire them to do a specific project but they aren’t a permanent addition to your team. Depending on the job you give them and how much control you have over them, you could classify them as an employee but for the most part, you don’t.
You’ve got to be careful with misclassification because the IRS is very strict with employers who make this mistake.
3. Worker’s Compensation Insurance
Anything could happen to your workers while they are on the job. That’s why worker’s compensation insurance is required in most states. There are some exceptions but not many.
You’ll need to set this insurance up before you hire any employees or you can get in a lot of trouble.
4. Write Up a Job Description
Once you’ve got all the above things squared away you can write up a job description. In this description, you will include a basic list of the duties you’ll need employees to perform.
On top of the list of basic duties, you’ll also include the skills someone would need to perform the job well and a list of goals you want them to meet. Keep in mind that this is a guide. It’s not going to be what you post on the job boards.
5. Start Recruitment
Time to let everyone know that you’ve got jobs available. You’re going to advertise it everywhere that you can. Posting the job opening information to your social media is the fastest way to get it around.
Make sure you write up a great job posting to put on job boards like Indeed and Glassdoor. A note for the future, when you have a few employees, always let them know when you’re hiring. They can help you get the word out.
6. Screening Email
Once you’ve got the post up, your inbox will flood with tons of applicants so you’re going to want to weed them out a little. To do this, get an email ready that you can send back to them that has a list of 5 questions or so.
They don’t have to be anything hard, just enough where they’ll need to spend at least 15 minutes on it and demonstrate some of their skills. Don’t be surprised if several people don’t email you back. As far as those who do respond, it’s easy to tell who put a bit of thought in their responses.
You’ll be able to pick out a handful of promising candidates to move forward with. Send these people an email to schedule the next step.
7. Phone Interview
Now that you have a smaller pool of candidates to work from you can start conducting phone interviews. These interviews don’t have to be too long. Around 15 minutes is all it will take for you to talk about their credentials.
Despite the fact that they don’t take too long, you’ll still need to do them. It’s the best way to get a feel for who they are as a person and a worker.
8. Paid Test
You can move the candidates who impressed you during the phone interview on to the next step. This is where you put them to the test by making them perform well, a paid test.
The reason why you want to do this is that you don’t know what it’s like to work for someone until you’re faced with working with them. Make them do a small task that they will be faced with doing every day in the event they are hired.
Pick the candidate or candidates who you think will think fit in the best at your small business and then move them on to orientation day.
9. Do Orientation
When you’ve chosen your candidate or candidates then you’ll send out emails to make the job offer. If they accept then you’ll bring them in for orientation.
On this day you’ll walk them through and sort of tell them where everything is and get them acquainted with the job. While they are there you will also have them fill out their paperwork such as their IRS Form W-4.
Small Business Hiring: How to Get Your First Employee Onboard
As you expand your small business you will need to hire staff to help you keep up with all the new customers you’ll be bringing in. There is a lot of paperwork involved but if you follow the steps we’ve laid out here you’re sure to find the right candidate in no time during your small business hiring.
Still need to set up worker’s compensation insurance for your future employees? Go here to get a free quote on our services.