How To Hire Employees

As your business grows, you may need to hire employees to keep up with your company and clients’ needs. There are certain things you need to know, whether you are hiring your first employee or adding more employees to your existing staff. Keep reading to learn steps to take before, during, and after you hire a new employee.

Distributing your job posting is one of the important steps when it comes to hiring employees. ZipRecruiter distributes your job posting to 100+ other job sites with a single click. You can get started with ZipRecruiter for free.

Signs That It May Be Time To Hire An Employee

You can usually tell when it's time to hire an employee. Here are some telltale signs that you need to think about hiring another employee to help you and your business:

You want to add new revenue streams
You have to turn down work
Your quality and customer service are suffering
You can't keep up with all of the menial tasks related to your business
You need help in an area that isn't possible with current staff members

Hiring and training a new employee allows you to take duties off your plate to focus on more pertinent tasks like growing your company.

3 Steps To Take Before Hiring An Employee

There are specific steps that every business owner should take before they hire an employee. Here are three steps to take if you're thinking about adding another employee to your payroll soon.

1. SET-UP AN EIN

If you've never hired anyone before, you'll need to register your business with the federal government by setting up an Employer Identification Number (EIN). This is your federal tax ID number, and most companies are required to have one. If you're an established business, you probably already have an EIN.

If you don't have one, you can apply for an EIN online through the IRS. There's no cost to set up an EIN.

2. DETERMINE WHAT TYPE OF EMPLOYEES YOU WILL NEED

You need to know what kind of employee to hire. If you only need temporary help, you might be in the market for an independent contractor. If you need daily assistance, you need to consider whether to hire a part-time or full-time employee.

Independent contractors are great if you need help in a specific area or short-term project. If things go well, you can develop a long-term working relationship whenever you need more help.

A part-time employee might be enough for your needs, but they might also be harder to find and require more flexible work hours than a full-time employee. A full-time employee costs more in terms of wages and benefits.

Whatever type of employee you hire, you'll need to understand tax requirements for employees, so you're covered legally. If you're not sure, seek help from a certified tax professional for guidance.

3. DETERMINE THE ROLE YOU ARE HIRING FOR

Do you have a specific role in mind for your next employee? Start with an end goal in mind when determining the open position you want to create and fill. Write a clear job description that includes the type of role, duties, and responsibilities of the job, any education or skills required, and any preferred skills that aren't necessary but are desired from job candidates.

Having a clear picture of the open role helps you weed out individuals who don't fit your company's needs and helps job seekers know if they qualify for the position. You'll save you and potential candidates time by being upfront and direct with the job description.

10 Steps To Hiring An Employee

Now that you've handled some of the necessary prep work to add a new employee, it's time to hire someone. Below are ten steps you can take to ensure a successful hire.

1. DO YOUR RESEARCH

You've already figured out the type of employee you need and the role they will fill in your company. Now it's time to do some homework. Head online and start searching for job listings similar to your open position. Look for any job trends, keywords to use on your listing, what other companies are offering, and any additional information beneficial to your search.

Another thing you should consider researching is employee compensation. What are other companies in your industry and area paying workers in roles like the open position? Always offer a competitive salary if you want to land top talent for open positions.

2. CHOOSE A CATCHY JOB TITLE

When creating a job listing to post online, always craft a catchy job title. You want to include searchable keywords to the position and industry, so job seekers find you. You also want to have a job title that captures their attention and leads to them clicking on your listing for more information. You can post your first job on ZipRecruiter for free.

3. CREATE A DETAILED JOB DESCRIPTION

You should already have an idea of the ideal job description from your research earlier. A good job description includes a description of the job duties and responsibilities. You can also include who they would report to or who reports to them if it's for a leadership position.

The rest of your online job listing will contain other pertinent information like:

Information about your company
Company location and info on the surrounding area
Education and certification requirements
Necessary skills
Preferred skills
A statement about being an equal opportunity employer (EOE)

You have a legal obligation with job postings, so be cautious when listing skills and characteristics. Only mark something as a requirement if it's absolutely necessary for the open position. Otherwise, list it in the desired or preferred skills and traits section.

4. DISTRIBUTE YOUR JOB POSTING

Once your job listing is ready, distribute it online to maximize your recruitment efforts. You can list your job opening in several different places online like:

The career page on your company's website
Online job search sites
Professional associations in your industry
College career centers
Your company's social media feeds

Always include a link to your company's career page and the job application itself. Your career page is one of the best marketing and recruiting tools to convert potential candidates into job applicants.

Let people in your company and your professional network know you are hiring too. They may know someone seeking employment that's a perfect fit for the opening position.

5. REVIEW ALL JOB APPLICANTS

When you start receiving applications, set aside time to look through them. You can do this manually or employ the use of an applicant tracking system (ATS). ATS is a type of software used by employers and recruiters to scan resumes electronically to narrow down the field. Whatever method you choose, work to narrow down all of the applicants to individuals who meet the requirements presented in the job listing.

There's a delicate balance between keeping too many job candidates and no keeping enough. Consider the amount of time and energy you (and your team) have to spend on job interviews with potential hires.

For more information, check out our guide on how to screen job applicants.

6. INTERVIEW THE BEST CANDIDATES

Finding the right employee for the job means interviewing potential candidates. Interviews can be in person, over the phone, or even through video conferencing platforms like Zoom. Find what works best for you and your time.

Create a list of questions to ask job candidates. Check out ZipRecruiter's list of 5 questions to ask in an interview for inspiration. Towards the end of the interview, ask them if there are any questions they wish you had asked. This allows them to insert any other information you missed that could be pertinent to your search.

Have a system for tracking the applicants you liked. This can be as complex as using recruiting software to keep tabs on every aspect of the hiring process or as simple as a basic spreadsheet.

7. REVIEW THE APPLICANT'S REFERENCES

Part of your hiring process should be to reach out to the applicant's references. Your goal with checking references is to verify the information the applicant shared with you, either in person or through their job application and resume.

Some former employers will only give you basic information like the candidate's specific role in the company and start and end dates. If they are open to offering more information, you can ask questions about:

The candidate's strengths and weaknesses
Why they left the company
Why someone should hire this candidate

8. CHOOSE THE BEST CANDIDATE

Consider all of the information received from the candidate and gathered during the interview process to make your choice for the best candidate. You may need to do another round of interviews if you still have a few candidates left who would be a good fit for the role. Involve others in your company to help with the decision.

Focus on which candidate will help you achieve company goals the most and best fit your company's culture.

9. MAKE AN OFFER

Once you've selected the candidate you want to hire, you need to make them a job offer. This can be done over the phone or in person, but you should have a formal, written offer prepared that lays out the specific terms of employment, including compensation and benefits.

10. NOTIFY CANDIDATES THAT DIDN'T MAKE THE CUT

The hiring process isn't over until you've contacted the other job candidates to let them know you didn't choose them for the open position. You can do this through a simple email or letter, or you can make it more personable with a phone call, but that might take up more time. Leave on good terms if possible if they are someone you might consider for other roles within the company later on.

Steps To Take After Hiring An Employee

There's still work to be done after the chosen candidate accepts the job offer. Here are some things you need to do as an employer once you've hired a new employee.

1. COVER YOURSELF LEGALLY

You are obligated to protect your company, and you can do that by ensuring you are legally covered with your new employee. There are several ways to do this:

Run a background check
Have a signed contract in place
Verify their eligibility to work in the U.S.
Fill out a W-4 if hiring a full-time employee

Depending on the state where you do business, you may legally be allowed to employ pre-employment drug testing. Drug use costs U.S. employers more than $740 billion annually in direct medical costs, lost productivity, work absence, and increased health care costs. Check with legal counsel to see if you're eligible to add drug testing to your hiring process and the necessary steps to do so.

2. CREATE AN ONBOARDING PROCESS

If you don't have one in place already, create an onboarding process. This is the process of how you integrate new hires into your company and can involve steps like:

Company welcome and tour of facilities
Share important information about the company and their job role
A checklist of any required information or documents for human resources
Training on company processes and procedures
Setting up direct deposit for payroll
Introduction and training to any equipment needed to perform the job

If you already have an onboard process, think about if there are any ways to improve it. Having a great onboarding process is a surefire way to communicate to new hires that you value your employees.

3. CHOOSE AND SET UP A PAYROLL METHOD

Payroll should also be a top priority. The last thing you want is not to pay your new employee on time. If you already have a process in place, great. Use it for all new hires. If not, determine how often you will pay employees going forward (weekly, bi-weekly, monthly, etc.) and how you will pay them (paper check, direct deposit). If you've hired an independent contractor, you might set up payments upfront, once a project is complete, or once specific project milestones are reached.

Frequently Asked Questions

WHEN SHOULD I HIRE MY FIRST EMPLOYEE?

Hire your first employee when you can no longer handle all of the tasks necessary to run your business effectively or that require specific skills that you don't possess. You may also want to add your first employee if you're going to increase or add new revenue streams to your business.

WHAT DOCUMENTS ARE NEEDED WHEN YOU HIRE A NEW EMPLOYEE?

Documents you may need when you hire a new employee include relevant tax forms (W-2, W-4), I-9 Employee Eligibility Form, state-specific forms, and an employee handbook.

WHAT IS THE COST OF AN EMPLOYEE?

The Bureau of Labor Statistics estimates that the average worker costs their employer $38.60 per hour, including wages and benefits (December 2020).

HOW DO I FILL OUT A W 2 FORM FOR AN EMPLOYEE?

You can manually fill out W-2 tax forms or use payroll software if you have cess. Information you fill out on a W-2 form includes business and employee identification information, employee taxable wages, tax withheld from employee wages, and any benefits that impact taxes.

The Bottom Line

Hiring employees doesn't have to be overwhelming. We hope that by following these steps, you will easily add new employees to your team. ZipRecruiter can help with all of your hiring needs. If you are ready to add to your team, consider listing your job opening on ZipRecruiter!