How to Hire Employees for a Small Business in 8 Easy Steps

The hiring procedure is extensive and intricate. If done right, you will find and hire high-quality people who will stick around and represent your company the way you want. If you don’t have experience in human resources, as many small business owners do, you might not know where to start when it comes to hiring.

You may streamline the hiring process by creating an effective recruiting process. The recruitment process is as much about you selling yourself as it is about a potential employee impressing you. It’s a two-way street, with top talent frequently receiving multiple offers from various companies.

Before getting started let’s pitch up on some small business recruiting statistics.

• 51% of small businesses intend to hire new personnel in 2021, with 63% expecting revenue growth.
• In terms of the hiring process, 83% of candidates feel it would considerably improve the entire experience if companies gave a clear timeframe.
• 80% of candidates said they would choose a job with a flexible work schedule over one without.
• Because of an unappealing job value offer, 65% of prospects abandon the hiring process (EVP).

So, a well-thought-out hiring process includes both your needs and the needs of your potential employee. Continue reading for expert hiring tips.

What qualities should you seek in truly great employees for your small business?

HR departments and external recruiters are often too expensive for small businesses. Most of the time, as a small business, you are often the recruiter.

So, what makes a great small business employee?

Expertise

As a small business owner, you wear many hats. Smart entrepreneurs understand that to maximize their time and advance their business to its utmost potential, they must rely on the experience of others as well. Recruit the best IT expert, marketing professional, and manager you can find, and don’t be reluctant to hire older or more experienced employees; they may often bring the most value.

Attitude

Small businesses require ambitious employees who can grow with the company. As a small team, you are all working towards the same goal. A great employee must have the correct attitude towards the business and the task. Maintaining motivation and desire at work can only be aided by a positive attitude. A positive attitude also helps you deal with life’s stresses and create a more productive work atmosphere.

Business zeal

Passion and motivation are far more important than experience or expertise. With enough of it, candidates can vastly outperform others with greater skill. Look for people who live and breathe your industry and value the opportunity to be a part of something amazing over a paycheck. They will frequently stay with you longer, work for less, and are interested in performing good work.

3 Things to Consider Before Hiring Your First Employee

Are you sufficiently occupied?

Before you hire your first employee, be sure you have enough consistent work to keep them busy even during slow periods. Otherwise, you’ll have to let the employee go, which would be difficult for both of you. Also, be sure the steady work is something you’re willing to delegate and can train someone else to do.

Can You Pay Them?

Many people have a successful month and then conclude that they are financially solid enough to pay a staff. Then they recruit someone, and the following month, sales drop again, and they are unable to get funding. It’s preferable to wait until you’ve seen consistent growth over a few months before hiring someone, and aim to save enough money to pay their salary for a time.

You must consider not just whether you can afford to pay them, but also the process of paying them.

Do You Have A Well-Defined Hiring Process?

Hiring an employee is far more difficult than you might think. You’ll get a lot of applications, so you’ll need to know how to limit it down to a few individuals for interviews and then choose the best one. If your procedure isn’t good, your first employee won’t be the right fit for the job, and you’ll waste money. So, before you do anything, you should plan your hiring process and ensure that you know how to pick the best candidate.

How to go about hiring your first employee

Before you hire your first employee, be sure you’ve covered all of your bases. Here are the steps you must take:

Get a company identification number

When you recruit employees, you must obtain an employer identification number (EIN) to use on tax returns and other documents submitted to the IRS. To obtain an EIN, fill out IRS Form SS-4.

Register with your state’s labor department

When you hire employees, you will have to pay state unemployment compensation taxes. These payments are made to your state’s unemployment compensation fund, which provides short-term relief to workers who lose their jobs.

Purchase workers’ compensation insurance

You should obtain workers’ compensation insurance to protect employees who may suffer on-the-job injuries.   Workers’ compensation insurance is required in the vast majority of states, with some exceptions for very small employers.

Set up a payroll system to withhold taxes

You must withhold a portion of each employee’s pay and deposit it with the IRS, as well as pay Social Security and Medicare taxes.

Create a job description and advertise the job

Once you’ve gotten your tax and insurance ducks in a straight line, it’s time for the fun part of recruiting your first employee: bringing in great candidates!

The first step is to create a job description.

Of course, you want your job description to be seen, so post it on popular job sites.

Recruiting and hiring

When interviewing, make sure you have a good sense of who the candidates are. Make sure you’re also doing a fair interview process, asking all candidates identical questions – this will allow you to compare apples to apples when making a decision. You should also review questions you should and should not ask for anything based on discrimination purposes.

How to hire employees for small businesses

Follow these steps for an effective hiring process.

Determine which roles need to be filled

This phase is critical to preventing job redundancy in the company.

The best thing you can do is go into the process thinking about satisfying wants rather than desks. And keep in mind that you’re seeking the greatest individual to fill a specific need, not just getting someone in and calling it a day.

Plan your recruitment strategy

Even if the hiring process is time-consuming,  you still want to be sure you choose suitable applicants for the specific position you are hiring for. This may not always imply selecting the best candidate overall.

Recruiters and hiring managers should take their time to identify the best candidate for the post rather than settling for the best candidate in the applicant pool.

Create the job description

Before posting a job, consult with your team managers about the ideal candidate for the job to get a strong notion of exactly what you need. It’s also a good idea to notify current staff about the opening. Create a job description that includes specifics such as job criteria, responsibilities, and expectations. Include information about your core values and company culture so that you can find the right cultural fit.

Post a job opening

To publicize a new job vacancy, most companies use career websites. Begin by posting the job on your company’s website to reach a certain audience. Turn to free and paid internet job classifieds to broaden your reach.

Interview the most qualified candidates

Give the candidates enough notice before interviewing them to ensure you get the most out of them. 

Inform the applicant about the interview ahead of time so that he or she may prepare more. This will allow you to get to know the applicant better and determine if they are a good fit for the post because you have given them time to prepare.

This will ideally form a bond with the candidate.

Follow up with the interviews

This step isn’t simply for calling or emailing the applicants. Interview evaluation is also essential.

Maintain perspective and consider everything – not just the interview or resume, but the entirety of what you’ve seen. Get feedback from others, but keep it to a limited group to avoid brain drain.“

There are numerous ways to follow up. It could range from as simple as a thank-you email for the interviewee’s time to a formal job offer.

Extend the job offer

You want to move rapidly if you’ve interviewed a large number of people and found high-quality prospects for the position. Make a decision right away. Ensure that all stakeholders (if applicable) are available to interview and provide feedback promptly. The demand for skilled workers remains high, and if you wait too long, you may lose a potential hire to other alternatives.

Conduct a background check

Before bringing the person into your business, you should consider completing a background check to verify there are no big red flags. If you believe the prospective applicant is qualified for the position, you can conduct a background check.

4 Ways to Attract the Best Candidates for Small Business Hiring

Now that you’ve learned about some of the top hiring trends, let’s speak about how to hire.

Provide incentives and rewards

 Offering compensation that is commensurate with their talents, education, and experience is one of the most effective ways to attract the best employees. Understanding what motivates different age groups and generations is important for any business looking to recruit the best talent.

Create a strong employer brand

To ensure that employment branding is a priority for the firm, your recruiting staff should work closely with the marketing team. The digital presence of your company, search engine optimization, and social media marketing are all key elements of your entire branding strategy.

Offer possibilities for growth

Growth prospects are critical for attracting and retaining outstanding people in small businesses. Small firms may have more opportunities for progress than larger companies.

You may help employees stand out in their professional growth by providing relevant experiences and challenges, as well as training and hands-on learning opportunities. This contrasts with larger corporations, where candidates may feel lost among a sea of employees.

Provide flexible or remote employment options

Flexible work hours and remote employment opportunities are frequently seen as important selling points by potential candidates.  One huge advantage of running a small firm is that you may offer these types of chances as hiring incentives.

Furthermore, remote work opportunities allow you to recruit and hire the top candidates who may not live within commutable distance of your company’s office.

Creating a recruiting strategy based on the tips above will give you a better chance of hiring and retaining high-quality employees. Explore how our staffing experts can help you hire for success by contacting us today.