A lot of entrepreneurs successfully establish a business, only to find themselves overworked and perhaps a little unsure of whether they should hire staff.
Being an employer, particularly of full-time staff, brings a whole new set of duties and responsibilities. Employers need to be discerning in the roles they create, and careful when choosing the right person for the job.
There are lots of ramifications when it comes to hiring staff, let’s take a look at the main points.
Budgeting For Wages, Insurance, and Taxes
Before advertising a position, consult your accountant or a financial advisor to determine, how many members of staff you can afford to hire. Without a solid financial check, taking on staff is simply too risky.
Create a Job
Next, it’s time to identify the area of your business you require staff in. You can then create a job, outlining all the duties of the new member of staff. Determine what skill set candidates ought to possess, and what qualification are essential. You may then advertise the position or approach a recruitment agency.
With the help of a recruitment specialist, design a set of interview questions and send out an invitation to interview to those candidates whose resume have impressed you most. Make sure to check out the list of prohibited questions. Thoroughly examine all the Federal Employment laws or consult a legal advisor or employment specialist.
Checking References is Crucial
Don’t accept the candidate’s assurances and make sure to check references, informing the candidate first (this is a legal requirement in the US). Resumes are known to contain minute “untruths and exaggerations” and it is, therefore, vital to speak to someone who has worked with the candidate in the past. Make sure your chosen candidate has a clean record, does not take illegal substances, and has no history of unwanted behavior.
Salary and Job Classification
Follow Federal Law guidelines when setting a salary and classifying the newly created job. Always remain within the legal pay and employment structures. For taxation purposes, the job must be classified into its appropriate group. If you are a first-time employer you might fare best by hiring a recruitment specialist.
To comply with the US Federal Employment laws, employers must record basic personal information for each employee, payment rate, payment period, payment frequency, over time, and so on. For taxation purposes, the IRS stipulates the filing of several forms.
You must comply with all the relevant Federal Laws and taxation regulations.
If you have never employed staff, you are advised to seek the assistance of an employment specialist. Once you are familiar with the requirements, you may take care of all the paperwork independently.
Depending on the job classification you may be required to take out specific insurance. Again it’s best to seek the assistance of a professional when choosing insurance cover for the first time.
If You Want to Expand You Will Need to Hire Staff
No business can grow without hiring good staff. Each member of your team brings her/his unique set of skills to the job. Delegating jobs will leave you free to plan for the strategic expansion of your business. Without hiring staff, your business will cease to grow and may go into decline.
Don’t be intimidated by all the paperwork, you will get used to filling in all the different forms or may even be in a position to hire someone to do all the employment related paperwork for you.
Being up-to-date with all your legal and taxation requirements is absolutely essential.