Hiring the right workers is a surefire way to maximize the growth potential of your business. Employees bring a wide selection of skills and experience, which play an integral role in improving innovation and productivity. With the support of a motivated and skilled workforce, it becomes easier to gain a competitive edge in your sector.

It is no surprise that companies that provide the best working environments and have an effective process to hire employees perform better in terms of revenue growth. A satisfied workforce drives revenue and the overall success of your business. To build a strong team of highly motivated and skilled professionals, you need to adopt an effective hiring strategy.

Table of Contents:

What You Need Before Hiring

Hiring employees is a significant decision that makes a considerable difference in your company’s operations. Whether you are a sole proprietor looking to add your first employee or an established firm, bringing new staff onboard requires adequate preparation. You need to assess your staffing needs, obtain an EIN (employer identification number), and the relevant permits from state and local authorities.

Items to Complete Before Starting the Hiring Process:

Obtain an EIN

Registering for an EIN is a crucial step process to hire employees. The Internal Revenue Service (IRS) requires all commercial enterprises to obtain the employer identification number. Once you have the nine-digit number for your business, you are ready to kickstart the hiring process.

Knowledge Base

An Employer Identification Number, more commonly referred to as an EIN, Federal Tax ID or FEIN is vital part of starting a business. EINs are used by most businesses and are required if you answer yes to any of the following:

  • Do you have employees?
  • Do you operate your business as a Corporation, Partnership or Multi-Member LLC?
  • Do you file Employment, Excise or Alcohol, Tobacco and Firearms tax returns?
  • Do you withhold taxes on income, other than wages, paid to a non-resident alien?

Obtain Local and State level IDs and Permits

It is vital to obtain all the permits required to conduct business and hire employees in your state and city or county. You need to identify the required permits and identification numbers to ensure glitch-free operations and the hiring processes.

Some of the permits issued by local authorities include health and safety permits that enable businesses working with food to operate without undermining public health and safety. Employees in the sector may need health cards to work legally. If your company conducts business from a residential area, the law compels you to apply for a variance.

Prepare New Hire Paperwork

Preparing paperwork is another essential step when it comes to the hiring checklist. Compiling paperwork may involve a single document or an automated process. Some of the forms required when hiring employees include W-4, employee handbook, direct deposit form, I-9, and the non-compete agreement.

Here is what you need to know about the new-hire paperwork:
  • Direct deposit form: Provides easier access to new employees’ banking details, thus ensuring faster payment.
  • W-4: Helps you determine employee taxes to withhold via the payroll system.
  • I-9: Verifies the eligibility of all new employees
  • Non-compete agreement: Bars employees from engaging in activities similar to your area of focus.
  • Employee handbook: Outlines your company’s code of conduct, policies, mission, and other aspects of your business.

Define the Role

When it comes to how to hire employees, you need to familiarize yourself with defining roles, composing the job description, and setting the salaries. By defining the role, you enable potential candidates to gauge their suitability. You should outline specific tasks that are essential to the position.

  • Job Description: A clear, concise job description makes it easier to attract the attention of the right candidates. Furthermore, your firm can compete with larger companies looking for qualified professionals. It is best to adopt a conversational tone and highlight critical points for maximum visibility. Spell out the requirements, duties, and benefits.
  • Determine Pay: Indicating the position’s salary is usually a bit tricky for many employers. The benefit of listing salary information in the job description is the ability to attract qualified candidates. Depending on your needs, you can choose to include or omit salary information. The latter option helps you reach out to candidates genuinely interested in the position.

The Hiring Process: How to Hire Employees

If you follow the hiring checklist, you are more likely to handle the process more efficiently. With time, you can tweak the procedure to suit your changing staffing needs. Avoid skipping essential steps to improve your ability to make an informed choice.

4 Steps of the Hiring Process:
  1. Find Candidates
  2. Conduct Interviews
  3. Background Checks
  4. Eligibility to Work

1. Find Candidates

To find the best candidates, consider asking for referrals from your employees, and trusted colleagues. This approach can yield the desired results, given that people who understand your operations can help match the right candidates to the vacant position. Additionally, referrals save you a considerable amount of effort and time perusing a heap of resumes.

The downside of referrals is that you may not achieve the diversity your business needs. In many cases, people introduce acquaintances who share many similarities with themselves. Increased diversity can be beneficial for your company’s long-term future.

A 2018 McKinsey report titled ‘Delivering through diversity’ revealed that diverse teams bolster the financial performance of companies. The report findings emerged from studies in 15 countries covering over 1,000 businesses.

2. Conduct Interviews

Interviews undoubtedly play an essential role in identifying the right talent for your business. If possible, appoint several team members to a panel responsible for interviewing the candidates. Members of the panel can approach the interviews from unique perspectives. This approach allows you to assess the strengths and weaknesses of each candidate more objectively.

Some key aspects to consider include teamwork, technical skills, and previous experience. Assessing these aspects gives you an indication of whether the candidate fits into your organization or not. During the planning phase, consider listing key questions that help you narrow down the number of candidates.

3. Background Checks

Checking shortlisted candidates’ backgrounds is a critical step, which lets you detect any significant red flags. In turn, you make informed decisions based on the pre-screening results. The failure to conduct thorough checks can undermine the safety of your workplace.

4. Eligibility to Work

All candidates should be eligible to work in the country legally. Form I-9 helps you determine candidates’ status as it covers relevant aspects, such as employment eligibility, social security number, and contact information. Overlooking the eligibility of your workers can lead to fines and penalties.

After Hire

Once you have made the final decision, the new-hires need to undergo the onboarding process. Furthermore, you should report the new employees to the state, obtain workers’ compensation insurance, select a suitable payroll system, and post workplace posters.

  • Report new hires to the state: The law compels you to submit new hires‘ details to your state’s labor agency.
  • Obtain workers’ compensation insurance: Helps protect your team members in the event of personal injuries or falling ill due to exposure in the workplace.
  • Choose a payroll method: Setting up an efficient system to handle salary payments reduces the workload and errors.
  • Post workplace posters and relevant information: Posters keep workers well-informed about their rights and compliance matters.