It can be tricky to figure out how to hire employees who will meet the needs of a small business with the pay you're able to offer. You often have to compete with bigger companies. Many of them have perks you don't — like high salaries and benefits packages. Knowing how to identify qualified candidates is the key to hiring new employees.
- Identify your needs in advance and match them with the right talent set among potential candidates.
- Interview every candidate carefully, giving each one equal consideration.
- Pay attention to how they feel about their role within the company and how they fit within your vision for growth.
While hiring employees can seem daunting, it’s one of the most important things you can do as a small business owner. And if you follow the tips learned in this guide, you’ll be well on your way.
Outsourcing Your Hiring vs Doing It Yourself
Outsourcing can be a great option if you’re not sure of the skill set needed for a particular position and don’t have time to train someone new. But, if you want to keep your employees close and give them more freedom over their day-to-day tasks, hiring directly might be a better option.
If you don't have a lot of capital, outsourcing can be appealing because it doesn't demand a large investment upfront. But, it can also be more expensive than hiring a full-time employee. If you outsource your recruiting and HR needs, the costs will vary depending on how much work each agency does.
You might also find that you have to pay extra for things like background checks and drug testing. The good news is that there are many online resources that can help you find the right outsourcing agency.
Regardless of whether you choose to hire new employees or outsource, it’s important to be clear on what you need and why. The more specific your requirements are, the easier it will be for potential candidates to meet them.
Ask the Right Questions
Be sure your interviewers ask the right questions. Asking about how well an applicant works in groups will help you figure out how they’ll fit into your team dynamic. If possible, interview in person rather than via video call — it can make it easier for both parties to connect and build rapport.
And don't just ask questions — listen to the answers, too. If a job applicant says that they want to work with you because of your company’s mission, then ask why they feel that way. This will help you check whether they truly understand what makes your organization unique and worth supporting.
Take Your Culture Seriously
If you want to hire the right people for your company, it’s important that you make culture a priority. Don’t just throw it in at the end of the interview process — ask about what they think makes a good company and why. Then, be sure that a potential hire fits with your mission and values.
Remember that you’re not just hiring someone to build your product or ship code. You’re looking for people who will make your company better by doing their job and helping the rest of your team members to be more effective.
Create a Clear Job Description Page
If you're looking to recruit new employees, you need to make sure you're advertising your job openings online. This is a great way to find the best candidates for your company, and it will help you find job seekers who can do the specific tasks that need to be filled.
Start by creating a clear job description page for your company's website. This will help potential employees know what they can expect when they come on board with your company. It can also give them an idea of whether they'd like to work there before they apply.
Include as much detail as possible when creating a job description page. This will often include things like health insurance and retirement plans.
Use Job Boards
A job board is an online platform where companies post their job listings. Job candidates can then apply directly through the job board rather than through an individual contact at the company. It's an easy way for potential employers and employees alike to sift through the job market.
There are many types of job boards, each catering to a particular industry or niche. Some of the most popular include Monster and Indeed, although there are many more options available. When deciding which job boards to use, consider how they fit into your marketing and whether they will reach the audience you want.
When you post a job on a board, be sure to include:
- The position title
- The location and time zone (if applicable)
- The qualifications required for the position
- The salary range
- A link to your company's website
Any other information that pertains to the job offer, such as how many years of experience are required and what skills are needed, should also be stated. If you're looking for someone with a unique background — like an engineer or graphic designer — spell out those skills in your posting.
Types of Employment
Not all forms of employment are the same. For example, if you're hiring someone to work in the office during regular business hours, then your posting should specify that. If you're looking for someone who can work remotely, such as a customer service specialist or virtual assistant, make that clear as well.
Here's a quick overview of the different options available.
A full-time employee is someone who works in your office on your schedule. You're responsible for providing them with a workspace, equipment, and tools to do their jobs. They work during normal business hours and are expected to be at work when you need them there.
Remote employees work from home or another location outside the office. Remote workers don't have desks or offices in your building and have more liberty to choose their preferred work setting. You still have some level of control over their schedule and how much time they spend working on projects for you.
An independent contractor is a person who provides services to your company, but they're not considered an employee. A graphic designer you hire to make a logo would be an independent contractor, for example. They don't work directly under your supervision.
A temporary employee is someone who works for your company on a short-term basis, usually at a specific time of year or just for a few weeks at a time. When you need extra help during the holidays, for example, this type of employment arrangement can be useful.
The Hiring Process
A hiring process is designed to help your company hire the best possible candidates for a position. It begins with your job posting but also includes interviews, references, and background checks. You can make things easier by having a clear idea of what you're looking for in an employee.
To make this process as efficient as possible, follow these steps:
- Make sure you have all the necessary paperwork in place: IRS forms like the W-4 will allow you to withhold taxes from your employees' paychecks.
- Create a job description outlining what you're looking for in a good employee, including skills and experience level.
- Create a list of questions to determine if candidates fit your culture or not.
- Set up and hold the interview. If all goes well, extend an offer.
The hiring process is the first impression new employees will have of your company. Make sure you're putting the right people in place so they can hit the ground running when they start working for you.
What To Know About Hiring New Employees
While hiring new people isn't always complicated, there are a lot of moving parts to keep in mind.
Workers' Compensation Requirements
Workers' compensation insurance is a common rule for employers in many states. It covers expenses for workers injured on the job, which can protect your company from lawsuits. Workers' compensation insurance is mandatory in most states. If you have less than three employees or don't have many employees who work full-time jobs, you may not need it.
Social Security Administration Requirements
The social security administration is another expense you'll need to factor into your budget if you hire new workers. It handles social security taxes and other tasks, such as withholding and paychecks.
Payroll Tax Requirements
When setting up a payroll tax account for a new employee, you'll need to provide information like your company's employer identification number (EIN), which is issued by the IRS or state government. You'll also need to submit all W-2 forms, W-3 forms, and other relevant documents.
Simplify the Hiring Process
At Scorpion, we pride ourselves on helping small businesses and organizations simplify their hiring process by providing the resources and tools needed to make more informed decisions. Our team is always available to answer questions about your employee management strategy, whether it's about payroll taxes or other HR issues. We're here to help you navigate the hiring process and get your new employee signed on quickly and easily. Contact us to get started.