How to Prepare to Hire Employees for the First Time, Part I

How to Prepare to Hire Employees for the First Time, Part I

How to Prepare to Hire Employees for the First Time, Part I

At some point, running a business will become a matter that forces business owners to choose between projects. You have to determine where to spend the majority of your time. Of course, the most logical solution is to spend your time working on projects that bring in revenue and signing new clients. This means that at some point you will need to prepare to hire employees for the first time.

Hiring an employee can be an extremely frightening process. You certainly don’t want to leave your business (and its potential) into the hands of just anyone. It’s important that you are prepared to choose the best person or persons to assist you in scaling your business. Follow the following steps and you’ll be well on your way to being fully prepared to hire employees for the first time.

Understand What You Need

The first step to prepare yourself to hire an employee for the first time is to know and understand exactly what it is that you need. Do you need office help in the sense that you need someone who can help you handle each aspect of your administrative needs? Do you just need someone to handle accounts receivable and payable? Do you need someone who has sales experience? Take the time to really figure out exactly the type of person (or persons) that you need to hire to continue to grow your business.

Once you understand exactly what it is that you need, you should take the time to determine if the position that you’re going to offer will be part time or full time. Stop and consider how long you spend on the tasks that you need the other person to take over on your behalf. Roughly how long do those tasks take you to accomplish?

You should also take some time to think about the experience level. Are you offering something that a person could learn on the job? Is it an entry level position? Do you need someone with experience? Do you need someone who has experience in specific software programs?

As you answer these questions, make sure that you write them down. It is a great way to start outlining a written job description. A written job description is beneficial for you and for your new employee.

Meet the Legal Requirements to Hire an Employee

When it comes to hiring an employee, it’s more than just putting an ad out or putting a sign in the window. You need to register to receive your EIN from the Internal Revenue Service. You may also need to ensure that you are appropriately registered in your state. Most employers are required by law to provide workers’ compensation insurance. You may also need to register your business to pay state unemployment taxes. To learn more about the requirements in your state, contact your Secretary of State.

Get Workers’ Compensation Quotes

As stated in the previous section, you will most likely be required by law to carry workers’ compensation insurance if you hire an employee. It’s important that you shop around to compare rates for workers’ compensation insurance providers. Keep in mind that workers’ compensation insurance protects your business just as much as it protects your employees. It can save your business by paying out on claims and reduces the likelihood that your business itself will be involved in a lawsuit. To learn more about workers’ compensation, you may call workers’ compensation insurance companies in your area or contact your state’s Department of Labor.

Determine a Payroll System

You will need to determine how you will handle payroll. The two best options are to invest in software such as Quickbooks or to outsource your payroll. Investing in Quickbooks can be extremely cost efficient, but you’ll also need to learn more about federal and state withholding. You’ll also need to be prepared to handle judgments, liens, and child support orders that require you to withhold a specific amount of money and send it to the state or other entity. Outsourcing your payroll may seem more expensive, but it also means that you get an expert who can handle the withholding of taxes and directives from the court on your behalf.

Consider How You Will Post the Job

How do you plan to hire? Do you plan to post the job online? If so, you’ll want to execute the appropriate research to determine the best online job markets. Sites like indeed.com have free options for employers.

If you plan on having resumes and cover letters submitted to you via resume, be prepared to take the time to review them. To ensure that you get the best candidates possible, refer back to the answers to the questions that appeared earlier in this article that relate to exactly what you need your employee to do and what you need them to know. Make sure that you state these requirements in your job posting.

Another option is to hire an organization such as Clients ARM that can help you find the best candidates to fit your need. Although this option costs you money, it makes up for that in the amount of time it saves you. Our Human Resources service includes recruiting. If you’re looking to hire, give us a call at 206-596-3000 to learn about your options!

Use an Application

Even if you receive resumes, you should also have an online or paper application on file for each potential employee. This makes it easier for you to have their personal information that you will need for tax purposes and you will also have the opportunity to check their references. Make sure that wherever you receive your applications from provide job applications that do not discriminate.

Learn More About Hiring

This is just part one in everything you need to know to hire an employee. If you’re looking for an alternative to a traditional employee, consider Clients ARM. Partnering with Clients ARM for your Human Resources, accounts receivable, billing, ICD coding, customer service, and other administrative needs is often around 40% less expensive (and time consuming). To learn more, book your free process review or give us a call!