30 days to Becoming an Entrepreneur: Tips for hiring your first employees

Your staff can make or break your business. If you hire the right staff, customers will love your business and will come frequently. If you choose the wrong staff, you will have unnecessary stress and unhappy customers. You can usually weed out some of the “bad” staff in hiring. Most of this is common sense, but make sure to:

  • Have applicants complete an employment application. This is where you collect their job history, references, availability, etc.
  • Have a well-written job description. Make sure to clearly outline the details about the position, expectations, and availability required. If people know that you want someone to work 20 hours per week on M, W, F then you won’t waste time with those that want to work less or more – or aren’t available for those shifts.
  • Consider a multi-step interview process. At The Woof Room, we did phone interviews, then in-person interviews, then working interviews. The working interviews had someone coming in for a 4-5 hour shift to actually do what they’d be doing if they were hired (they were paid for this). This was an excellent opportunity to see if they’d be a good fit – and make sure the job is someting they’d want. We did have people decide the job wasn’t a good fit for them (and some we decided weren’t a good fit for us) so this was an important step for us.
  • Invest the time in training. Training is critical in hiring. Don’t skip this step or spend too little time on it. Create a training protocol to ensure each new hire is trained in everything they need to know – and has the opportunity to test that knowledge before they are on their own.

Don’t forget about the logistics of hiring! I highly recommend you use a payroll service. While I am all about doing as much as possible in-house, dealing with payroll taxes can be time consuming. Payroll services typically charge a flat rate and then an amount per employee. The cost is minimal, when we had less than 5 employees it was around $25-$30 per month. With our 10+ employees now with The Woof Room we pay about $55 per month. Considering the amount of work involved with payroll and payroll taxes (and keeping up with human resources notices for employees) it’s well worth the money.

Once you make your selections and have payroll set-up, you’ll need them to complete a W4. You should already have their employment application. You’ll also need to get proof of legal status – which is usually a social security card and drivers license – both of which you copy and keep on file just in case. Lastly, if they are doing direct deposit you’ll need a voided check and direct deposit authorization form from them. Make sure when you get this information to triple check what you write down and turn in to payroll. A typo can be costly – particularly when payroll does checks on their social security number.

Next, 30 days to Becoming an Entrepreneur: Should you hold an open house or grand opening party?

Photo Credit: Daniel Ted Feliciano

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