There comes a time when every small business owner needs to start hiring employees. In the beginning, you likely kept your operations as lean as possible. As your business expands, however, it becomes necessary to add new members to your team. Hiring the best employees at the right time can make a huge impact on business growth. Still, it is an expensive and time-consuming venture. On average, the onboarding process costs about $4,000. If you take the right steps, however, these expenses will be worthwhile. Are you ready to add new members to your team? Here’s how to start hiring employees for your small business.
Identify What You Need
First, it is essential to identify exactly what you need. Get specific about why you need to add a new person to your team. You are not just hiring someone because you feel overwhelmed. There are simply too many tasks that need to be done. Identify these tasks and calculate the time it will take to complete them. This will give you a good idea of exactly who you need to hire. For example, let’s say you want to hire an administrator. Calculate the number of hours a week it takes to so this work. If it is only 10 hours, you may want to consider part-time help. Conversely, if this number is close to 40, you probably need a full-time worker. Calculating the time it takes to complete necessary tasks will maximize the efficiency of your hiring system. Before you begin to hire, identify exactly what you need from a new employee.
Obtain an EIN
The next step in the hiring process is to obtain an employer identification number (EIN). An EIN is a nine digit number assigned by the IRS. This number identifies you as a business entity. It also makes it legal for you to hire employees. Without it, you can not officially add anyone to your team. The IRS encourages companies to apply for this number online. You can do this through the IRS website or another verified licensing agent. Either way, the process is relatively easy. Applying for an EIN is a free service offered by the Internal Revenue Service. You simply need to fill out the proper forms. When your online application is complete, the information is validated and an EIN is issued right away. Once you obtain an EIN, you can legally begin to hire employees for your small business.
Prepare Your Tax Requirements
It is also necessary to prepare the proper tax requirements for hiring. You will need to fill out the paperwork to pay three types of withholding taxes. First, there is the federal income tax withholding. This will allow you to collect and submit employee W-4 forms to the IRS. Next, obtain all federal wage and tax statements. You are required to fill out these forms yourself. They will detail all earnings and taxes withheld from your employees each year. Each state also provides their own tax withholding form. You will need to gather this paperwork as well. It is important to compile your tax paperwork before scheduling any interviews. This way, you are prepared for hiring in advance. Prepare all your tax requirements before hiring employees for your small business.
Write A Compelling Job Ad
The next step is to write a compelling job description. You want to attract qualified job seekers. Creating a job ad is the best way to do just that. A job ad is a scaled down version of a job description. It contains information that is meant to entice prospective applicants. Include a compelling yet generic title that job seekers are likely to search for. In your ad, break your description into sections. This makes it easy for applicants to scan your post for key data. You also want to describe your work environment. This will give job seekers a sense of your small business model. Lastly, describe your ideal candidate. This will help applicants determine whether they will be a good fit. Write a compelling job add the attract the best employees to your small business.
Advertise Your Job
The last step is to advertise your job. This will get the word out that you are hiring. You want your job to land in front of the right people. This means posting your job listing on a variety of different platforms. Paid online job boards are a great place to start. Most of these sites have built-in ways to target candidates. You may also want to research niche job boards if you require an employee with special skills. Social media is another good outlet to use. Use your business accounts to share or post a link to your job. This will connect you with eligible candidates who are already familiar with your business model. Use as many channels as possible to advertise your job listing. This will connect you with a large pool of candidate to choose from. Advertise your job on several platforms to find the best new employees for your small business.
There are several steps that business owners must take to hire new employees. First, identify the tasks you need done and calculate the time it takes to complete them. Next, obtain an EIN from the IRS that allows you to hire legally. You must remain compliant with all the necessary tax requirements in your area. If you fail to do so, you risk completing one of the common business owner tax mistakes. Then, write a compelling job advertisement to entice job seekers. Lastly, adverse your job listing on several different platforms. Use this post to start hiring employees for your small business.