Are you thinking about the steps to hiring an employee or are you looking for ways to improve your current hiring process? Whether you are a new business hiring employees or established company, you will be aware that hiring employees is an essential but challenging aspect of operating a business. Hiring unsuitable employees can result in reputational damage, loss of business and have a negative effect on your profits. You need to use proven techniques and tools, when considering how to find the best employees for your business.
If you’re a new business hiring employees, then keep in mind that hiring the best job candidates will have a positive effect on your business. Firstly, you will be able to create a constructive work culture with increased productivity. Additionally, good employees will represent your business in the best light, which may result in repeat sales. Overall, your business will gain tangible and intangible benefits from hiring the best employees.
The following guide gives you 12 fundamental steps to hiring an employee.
If you are a new business hiring employees, you will need to apply for your EIN, which is also known as a federal tax ID number. Your EIN is a unique nine-digit number to identify your business in relation to your tax obligations. You can apply for your EIN online, via the IRS website. You need to check with your states’ labor department to find out how to apply for a state EIN as this is essential before taking on additional steps to hire an employee.
It is important to comply with both state and federal requirements when taking the steps to hiring employees. You must contact your state department to find out what your obligations are before and after hiring employees for your new business. The U.S Department of Labor website has a list of contact details for every state so you can start taking the steps in hiring employees effectively.
Withholding the right amount of taxes for different classes of employee is a basic requirement when you’re a new business hiring employees. For example, gig workers and permanent employees are subject to different tax rules. You must set up records for the following three types of income tax:
It is recommended that you retain your employees’ tax records for at least six years. This is because the IRS can make a request to inspect records in relation to your employees’ tax for up to six years.
After you have prepared your business in relation to tax requirements, you can now turn your attention to the practical aspects and steps to hire an employee. Figuring out how to select a new employee starts with a clear focus on what you are looking for.
Ask yourself the following questions to describe the role as you think about how to select a new employee:
After you have taken this step to hire an employee and defined the role for the first time, you should make continuous updates even after the employee is in the role. This keeps the job description dynamic to reflect any changes to the role.
Defining the role makes it easier to write a job description and to make a decision for how to select a new employee. A job description will only be effective in attracting the best employees if it is written in a clear and focused way.
Here are some tips for writing effective job descriptions:
When you are satisfied with your job description, it is time to post your job openings on appropriate sites for a new business hiring employees. With so many job sites available it can be difficult to know which ones to choose for a small business hiring employees. Additionally, it can also be challenging to find the time to manage listings on multiple jobs sites.
When deciding on the next step to hire employees, it is important to think about how to streamline the process without compromising on the quality of the candidates.
With Fountain’s new Boost feature, the headache and wasted time associated with posting to job boards and sourcing candidates is eliminated. You simply have to let us know how many hires you need and we will do the rest. We suggest a budget and post your jobs on the most suitable job boards for your business.
Boost makes sourcing candidates smooth and easy as you:
Your pre-screening process will help to determine whether the candidate's responses on the application form will translate into a good fit
One way video interviews are an ideal way to pre-screen applicants because you are able to see how the candidate communicates.
Fountain provides the functionality for candidates to record interviews to help you to decide whether they will move on to a face-to-face interview. Recorded video interviews saves time and resources as there is no need to coordinate facilities and staff members for in-person interviews unless there is a strong likelihood that the candidate will fit in well with your existing teams. This is an essential step to hire an employee as it can save your team hours of time and money by reducing the time wasted interviewing.
Although it is important to get to know as much about the candidate in order to make the best hiring decisions, there are some questions that are illegal to ask. Some inquiries are considered to be discriminatory in nature and may negatively prejudice the candidate. The U.S Federal government has identified some attributes and characteristics that are off limits in interviews.
Some of these characteristics include:
After you have pre-screened your applicants, it is time to invite shortlisted candidates to an in-person interview. Depending on the number of candidates you are planning to see, scheduling interviews can become a logistical nightmare. Arranging interviews the traditional way typically involved sending emails with the proposed date and time then, waiting to hear whether the candidate could attend. If the candidate is unable to accept the proposed time, the whole process can be thrown out of alignment, as hiring manager struggle to find new slots.
With Fountain, the question of how to select a new employee is made easier by reducing back and forth messaging associated with traditional interview scheduling. Our interview scheduling toolkit allows you to send a link via email or SMS to schedule interviews. The candidate selects an available time slot and your calendar is automatically updated. The candidate receives a notification that the interview has been scheduled via an SMS message.
The interview panel will be dependent on the size of your business. Ideally, you should have at least two people interviewing the candidate to ensure you select the right one. The panel can consist of the hiring manager and a Human Resources representative to ensure you’re taking the right steps in hiring employees effectively. Your questions should be geared towards finding out how the applicant deals with real life scenarios. Therefore, you should ask some behavioral questions to get an insight into how the candidate works through issues that may come up in the role.
You should also include questions where the candidate can provide examples of how they solve problems. As well as having an aptitude for completing the required tasks, you also need to find out how the candidates work with colleagues. So, questions about how they handle difficult situations with team members will give you a good insight into the type of team member they will be.
A candidate may have impressed you in the interview, however, you need to run background checks before going further. You may need to consult a labor lawyer before running a background check. This is because different states have various stipulations about what you can ask when doing a background check. For instance, there may be a ban or limitations in relation to asking about criminal histories.
Background checks must include work references to confirm the candidate’s work history and their responsibilities. You can use background check vendors to undertake this process on behalf of your company. To create a seamless employee hiring process, you should ensure that your background check vendor integrates with your recruitment tool. Fountain seamlessly integrates with different vendors to optimize how you hire employees. This enables you to create an efficient workflow that takes the candidate from the application stage to the job offer.
A vital check when hiring employees is to confirm whether they have the legal right to work in the U.S. You may be liable to pay fines and could face criminal charges if your employees are not eligible to work in the U.S.
The following will help you to hire candidates who have the correct eligibility for employment:
Final thoughts: Steps to hiring an employee
Hiring employees can be an exciting time because your company is growing. However, it can also be daunting as the stakes are very high if you employ the wrong person. You should make every attempt to reduce the uncertainty from the hiring process by using recruitment software that makes sourcing, screening and onboarding of candidates seamless.
Whether you are a brick and mortar or on-demand business, Fountain has a plan that will suit your business.
Try Fountain for free today to find out how we can help you to effortlessly expand your workforce.
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