Right now is a great time to be an employer seeking new workers. Over 10 million people in the US are currently looking for a new job. If you want to grow your business, you’ll need some tips for hiring your first employee.
To find out what you need to do before hiring your first employee, check out the guidelines below.
Visualize Your Ideal Employee Qualities
Before you begin a new hire onboarding process, think about what you would like for your new employee. Are they highly qualified? Can they produce a proven track record of being a hard worker?
Your employee should make your job easier, so consider areas where you could use more help. Maybe you need someone to run the technical side of your business. Or, perhaps you just want someone who can answer your calls and get your morning cappuccino!
You should list your desired employee qualities on the job application. You can ask about these qualities during the interview process. Some common characteristics include:
- organizational skills
- computer literate
- good communication
- team player
Be Specific About the Role
Anyone applying for the job you have advertised will want to know exactly what they’re going to be doing. Include days they’ll need to work, times you expect them to be available, and whether you can offer remote working options.
You should also outline whether the role is exempt or non-exempt. Non-exempt employees require at least minimum wage and overtime if their working week exceeds 40 hours. These are required by law.
Decide Upon Pay
Other things to think about when hiring employees are profits and pay. You should decide what to pay your first employee based on your business profits, the hours they work, and their exempt or non-exempt status. Good job descriptions always note the expected salary.
Make sure you can afford to pay what you’ve promised your employees before hiring them. If you’re a new business, incentivize new applicants further by offering opportunities for salary increases in the future.
Outline Quarterly, Bi-Yearly, and Yearly Goals
You should let potential employees know how you expect your business to perform and what your company goals are. These goals can be small, such as setting up a detailed website. Or they can be much larger, like launching your business in a new country.
Whatever your goals, prospective employees love to see where your business is going. You’ll be letting them know that, as an employer, you’re goal-oriented and that the company they’re applying to has a future.
Understand Federal and State Employer Laws
Depending on your location, there are certain criteria you will have to meet as an employer. You will need to apply for and gain an Employer Identification Number from the IRS regardless of what state you’re in. Each state will require you to register for an unemployment tax account as well. If the state your employee resides in has income tax you will also need to set up a withholding tax account. Be on the lookout for additional requirements such as paid sick leave or paid family or medical leave programs, and make sure you take the time to understand your obligations as an employer for each program.
Some states require the purchase of workers’ compensation insurance before you bring anyone on board. You can find further information on your local government website.
Although not required by law, it may be a good idea to set up a proper payroll system. A payroll system works to make paying your employees and managing taxes easier. If you need help with this part of the hiring process, speak to the experts at Valor Payroll Solutions.
Follow These Tips for Hiring Your First Employee
Hiring a new employee is exciting, but it also requires a lot of thought and effort. To make the process as smooth and successful as possible, follow the above tips for hiring your first employee.
When you have your first employee, you’ll need to organize their payroll. For advice on how to do this easily, contact us today.