Hiring Employees is important for a business to steadily grow. So these are tips you must know before hiring employees, to prepare you and your business.
You may have started your business as a one-man show, but as your business grows, hiring employees becomes inevitable.
However, if you’re a human resources rookie, employee recruitment can turn out to be a difficult task. There’s more to hiring than placing a job ad, conducting interviews, and picking out the most qualified candidate. Yet, a bad hire can cost your business up to 30 percent of the employee’s first year-earnings.
To help you start on a solid footing, we are telling you a couple of important things you should know about hiring great employees.
You Need an Employer Identification Number
When you run a solo small business, you’re your own boss. You make all the decisions without consulting anyone.
It’s, therefore, not uncommon to find some small business owners hiring without getting an Employer Identification Number (EIN). Consider an EIN your license to hire. If you go on a recruitment drive without this identification, you’ll be in breach of IRS regulations, and you could face some tax penalties.
So if you thought you’d just wake up one morning and hire somebody, hold your horses. You need a nod from Uncle Sam.
Worker’s Compensation Insurance
The reason most solo entrepreneurs hold off on hiring employees is the associated costs. There’s employee wages, bonuses, federal and state taxes, and then there’s workers’ compensation insurance.
Although specific workers’ comp laws vary from state to state, you’ll typically need to purchase some minimum insurance. This may look punitive, but it’s to your benefit.
If an employee gets injured on the job, they can sue your business for their injuries and loss of income. When this happens, your insurance company will step in and compensate the employee.
Bear in mind that as you bring more employees on board, you may need to purchase more than the minimum insurance. Two or more claims can quickly max out your minimum insurance, meaning you’ll need to pay the balance out of pocket.
Thinking of Placing a “Help Wanted” Sign on Your Window?
When you run a brick and mortar business, it’s likely that you want to hire someone from your local area. This is why it makes sense to place a “help wanted/we’re hiring” sign on your premises’ window.
The modern job seeker isn’t looking out for such posters. They’re hunting for jobs online, which means you have to take your recruitment online, too. Online job boards and professional social networks are the leading job hunting spots for job seekers.
In fact, to get the right employees, you might need to use an audience segmentation tool. This will help ensure your job ad reaches potential employees with the qualities you desire.
Hiring Employees: Get It Right
Employees are the lifeblood of any organization. However, workers aren’t created equal. Good hires will help your business achieve its goals, while bad apples will make you losses.
But with these tips on hiring employees, you’re in a better position to find the right talent.
Best wishes, and be sure to explore our blog for more business tips and insights.