Hiring your first employee? Either you want your business to be competitive, or you want to prosper. But you do not want to bring anyone on board; you need the right skills and you know it is going to be costly. You do not want to waste your time; neither do you want to make a costly mistake. Therefore, you need to proceed with caution.
The following is a rundown of some basic tips:
- Assess the Needs of Your Business
You need to understand why you need help. Maybe the tasks are overwhelming, and you need an extra hand. But keep in mind that being busy is not a green light for hiring. You need to identify what you are trying to accomplish with the new employee; the new person should bring value to your business. There is no clear-cut answer for every business because of different needs, but what you need to do is to evaluate your needs and identify the benefits of this new employee.
- Assess Your Finances
Bringing a new candidate on board is going to come at a cost: insurance, compensation, and taxes. So, you need to conduct a thorough analysis of your financial status. If you foresee a difficult economic period, consider other cheaper avenues.
Your employee may need new equipment and that may ‘dent’ your bank account. Sturdy equipment costs more and may cause a strain on your business after you have hired. But what has more value is determining that the new employee has more benefits.
- Identify Your Legal Responsibilities
You need to familiarize yourself with the hiring laws. You also need to understand your responsibility pertaining to taxes, Medicare, insurance, and Social Security. Insurance coverage may impact your business in the future and requires careful research.
If your employee needs full coverage dental insurance, you need to understand the plans available. First, establish the employee’s eligibility for a plan; then chose a plan that is acceptable. Estimate your employee’s future needs then consider your budget.
- Screen Your Candidate
Start by testing for illegal substances. The reality is that the society is battling substance abuse, and the war is far from over. For this reason, hiring an addict can affect a business due to low productivity. Second, screen your employee’s behavior. There are various methods of testing behavior: aptitude tests, handwriting analysis, and psychological testing. This kind of screening should help you determine the skills and temperament that you can work with.
- Check References
Sometimes, employers toss the idea of checking references. Mostly, when they assume that an employee is trustworthy. Ask the candidate for references and make sure two are professional; one can be personal.
Sometimes, you may miss valuable information about the applicants, simply because you did not ask. Forget about your gut feeling and proceed to check the references. And when you contact them, try to match their information with what you have to evaluate the real value of your candidate. This is one of the best ways to get an insight into a candidate’s background and history.
These simple tips will save you time and money.
Get Your FREE Book Now
Submit your email and name below to receive "How to Get Out of Debt" straight to your inbox.