Hiring Tips for Small Business Owners

You’ve spent years building your business. You’ve skipped vacations, missed important family events, and haven’t taken a single sick day. Now, besides being extremely tired, you’re ready to reap some of the benefits of all your hard work. You need help. Hiring your first employee is a big step, and requires plenty of forethought and planning.

Before you hire, make a list of all the duties that you will require of the employee. This list should be used to create a job description. The job description is effectively a contract between you and the employee that outlines your expectations and tasks you require the employee to perform.

You will also use the job description to help you determine what type of employee you need. Should you hire a full or part time employee? Should you employ an independent contractor? This decision will affect the types of taxes you will be responsible for, as well as the way you handle payroll and the insurance coverage that you will need.

Determine the personality type required to perform the duties. This personality type may be vastly different from your own. Are you laid back and slow to act on decisions, preferring to mull them over and weigh the pros and cons first? You may benefit from hiring a detail-oriented “Type A” personality who is quick to act and borderline obsessive compulsive. Are you a real people person who wants to please everyone, but terrible at numbers? You could benefit from hiring a shy accounting genius. You will have to know your own strengths and weaknesses. Make a list of them and be honest. If you only have room for a couple of employees, finding a complementary personality type is vitally important.

Decisions made under duress or during stressful periods almost always backfire. Don’t hire under the gun. Allow yourself plenty of time to advertise the available position, collect resumes and applications, interview the applicants and check references. You will also need time to train the employee and evaluate their performance. You can’t expect a new hire to step into your business and allow you to take a vacation after only a day or two of training.

Choose employee benefits and policies ahead of time. Know what your small business can offer them. If you’re hiring a full time employee, are you providing or sharing the cost of health insurance? What are your vacation and sick time policies? Are you familiar with the laws in your state regarding overtime? Will you offer profit sharing, performance bonuses, or commissions? How about employee meals or transportation costs? Medical savings accounts or 401k packages? Many of these benefits aren’t very expensive and make your potential hires excited to work for you.

I’ve said it before and I’ll say it a million more times: check references. Don’t get stuck with another employer’s headache. A simple phone call or quick email could potentially save you from lawsuits, harassment complaints, theft, or repeated worker’s compensation claims.

Above all else, remember that no one you hire will care as much about your business as you do. Expecting them to do so will only cause you grief.