Planning to expand and grow your business?
Many small businesses are beginning to flourish once more as the pandemic subsides. As the economy and labor market recovers, people are more eager to lock in good jobs. If you’re looking to grow your small business, this may be a perfect time.
However, hiring employees right away is bad business practice. With poor employee hiring practices, you may end up with an underqualified team.
Want to ensure you get reliable staff on your side?
This article covers some crucial tips about hiring processes. Read on and consider the following things when hiring staff members.
Prepare Your EIN
Before you post that job advert, register your business with the necessary authorities. Every business owner must have an EIN or an Employer Identification Number. This is a nine-digit code used for tax IDs and is similar to an SSN.
Each state has different registration requirements and processes for an EIN application. Ensure to check it with your local labor department to know how you can get your EIN. You can also apply for your Employer Identification Number online.
Set Up Records for Taxes
Before hiring your first employees, you also need to consider taxes. There are three types of withholding taxes to address before any hiring processes. These are state taxes, federal wages, and federal income tax.
Each state may also have a withholding form, so ensure to get yours. Business owners are also in charge of filling out their employees’ Form W-2. This document lists their taxes withheld and earnings for the entire year.
Each employee must receive a copy of this document by January 31. By the
End of February, you also need to send the original copy to the Social Security Administration.
Every new employee under your management must complete Form W-4. This is the certificate that defines how much should be withheld from their pay.
Define the Job Position
If it’s your first time hiring employees, it may be difficult to know what you’re looking for. Determine what kind of help you need. Make a list of the most demanding jobs that you need help with.
This can range from marketing to inventory management or customer service. Consider what responsibilities you expect from this employee in the future. This helps you determine what kind of background and skillset you need to fill out this role.
Use this information to fill out a clear job description. Your job advert must be concise and informative to get the best applicants.
Look for Candidates
Referrals from current employees can be a great way to find a good applicant, fast. However, if you wish to avoid biases, target a wide demographic. Post your job advert to various platforms, like LinkedIn and Craigslist.
Blind recruitment is a great strategy to consider. It can promote workplace diversity and help you overcome unconscious bias. If you can’t find what you’re looking for in a mountain of resumes, you may need to revisit your job advert.
Potential applicants may be misinterpreting your job description. If you’re on the fence about a resume, read their cover letter to determine if an applicant is a good candidate.
Run Background Checks
Background checks or employment screening are crucial for your business’s safety. It protects not only you but also your staff and customers. It’s important to note that each state has different restrictions for background checks.
Some states may have special requirements if you want to look up criminal or credit history. In some states, it’s prohibited to ask about criminal history at all. Ensure that your applicants authorize your business to run a background check.
Interviews and Follow-Ups
Once you’ve sifted through applications, it’s time to schedule interviews. Each applicant who comes for an interview will have different goals. Their approach and demeanor will help you get a more balanced assessment.
Do you own a bigger business? It may help to include other members of your staff in the interview. This helps your team feel included and also helps you fill in weaknesses.
Some members of your staff may be looking for different kinds of help. Bigger hiring processes help you find the right solutions and support. Aside from technical abilities, it would help to see how your applicants act.
Look for people who are open to criticism and communication. You don’t want someone who can disrupt the workplace with bad habits or behavior.
Choose Your Payroll Method
After hiring new employees, it’s up to you to manage their payroll. Take note that it’s also up to you to withhold a small part of their income to submit to the IRS. You can do this yourself or enlist the help of an accountant or payroll service.
Some payroll services offer direct integration with your insurance provider. Even if you decide to outsource, it’s best to familiarize yourself with the process. This helps you ensure there are no inconsistencies or issues when it comes to payday.
Finalize Paperwork
After hiring employees, there is some paperwork you need to finalize. Report your new hires to your state’s labor agency. As mentioned prior, each state has its own requirements, so ensure to abide by them.
It’s also your duty to get worker’s compensation insurance. This helps you protect your employees in case of illness or injury. Find a policy that fits your needs and business best.
Onboarding Employees
Finally, it’s time to introduce your employees to the team. Start your new hires with an orientation. Ensure that they understand your business’s core values and expectations.
This helps them settle into the company culture and adjust better. You may also assign a mentor and give them a project to get started with.
Looking to streamline the hiring and onboarding process? Check out WorkBright.
A Guide to Hiring Processes and Important Steps to Take
Here are some crucial parts to remember about hiring processes. Use this guide to find the best members to add to your staff.
If you’re looking to build a strong business team, don’t stop here! Check out our other blog posts to learn more tips about running businesses.
