Hiring employees is a definitive step in the success of your business. Choosing what requirements to look for, who to employ, and how each and everyone would contribute to your business’ goals ain’t an easy feat. There are several steps involved before you can even begin hiring people.
Here are the seven things you need to make sure are in place before you start hiring employees:
1. Employer Identification Number or EIN
All startup businesses need an EIN before they can start hiring people. An EIN is a nine-digit number assigned to every registered company. It’s required to obtain an EIN to be able to withhold taxes from regular paychecks. It will also serve as your business’ social security number. If your business is an LLC, EIN for LLC cost depends on how you desire to obtain one, companies that offer incorporation services require payment for them to process it for you or you can file it personally for free.
2. Business Scaling Strategy
What does the recruitment team look for to trigger the hiring of employees? What is the expected company headcount for it to function at its best? How does each role contribute to the company’s goals? A reliable business scaling strategy must be in place before you decide to begin recruitment.
3. Employee Roles and Responsibilities
As part of the business scaling strategy, all positions in the company must be clearly defined. Each employee must set guidelines on what they need to accomplish, their responsibilities, and how they can contribute. Make sure that they are well-detailed, documented, understood, and approved by all ranking employees.
4. Budget
Each employee you hire equates to a company expense. You need to consider what benefits each employee will get and how paychecks differ between associate and supervisory positions. If you don’t put a cap on your budget, you are setting up your business to fail.
5. Insurance
Insurance and workers’ compensation may differ per business industry. Make sure to research well and comply with all the requirements. Fully understand how worker’s compensation works and what the law dictates, especially if there are hazardous conditions in the workplace.
6. Taxes and Payroll
Think about how you plan to manage and distribute employee paychecks. Consider putting a system in place for these to occur automatically and without hassle. Hiring an HR or an expert to decide whether to use a third-party app or implement an independent system might be best.
7. Workplace posters
The U.S. Department of Labor (DOL) dictates that specific notices must be distributed and posted in designated areas in the workplace. The requirements are relatively easy to follow and should be effortless to implement.
Once all seven steps in this guide have been completed, you may go ahead and hire employees for your company. Make sure to have a plan in place so that you can find the best people that suit your requirements and needs. An effective strategy might include relying on personal references and maximizing potential leads in various social media and job listing sites. The more potential leads you can find, the better chance of finding the people you are looking for. The type of employees you hire and keep shall help you reach your business goals faster.