Hiring your first employee starts long before you post a job opening, and small business owners should start preparing ahead of time.
In this episode of Small Business Smarts, learn how to think strategically about what comes next, from budgeting for a new hire to sharing your company’s mission, values and goals.
For more information, visit ADP.com/SPARK
Video Transcription:
Victoria Jordan, founder of PureWork Studio
I'm back with Laci Buzzelli from ADP for part two of our conversation about prepping to hire for the first time. In part one, we discussed some prep small business owners can do before they're ready for an employee, but there's another set of things to consider when you're getting closer.
Hey, Laci. How are you doing?
Laci Buzzelli, vice president and general manager of small business services, ADP
Hey, Vicky. Good to see you.
Victoria Jordan
Good to see you, too. Take me through what I need to know.
Laci Buzzelli
So as your business grows and it's time to start thinking about hiring some help, there's a few key things that you'll want to think about. First, make sure your cash flow is in line to hire your first employee. So I recommend setting a budget. Remembering to account for more than just the salary. As a business owner, you're also responsible for the employer, payroll taxes, and any benefits.
If you plan to offer, next step would be to sketch out a job description. Think about the duties you'll need that employee to fulfill and define their responsibilities clearly. What are the required skills? Will this be a full time or part time role? Also, it's really important to share your company's mission and values. So that way applicants are clear on what makes your business amazing.
As you think through your hiring process, you should also consider how you're going to find those applicants. Where will you post the job? How are you going to screen the resumes? Will it be you or somebody else within your business? How will you check references? Investigate how and when to conduct background checks if your state requires them. What does your interview process look like?
It's important to build job related questions. We all know there's nothing worse than an interview that doesn't get you or your candidate the information that you need to make a decision. If it makes sense, create short questionnaires or skills assessments to narrow the pool of applicants. Remember to think of each candidate in terms of their skills and also their fit for your workplace culture.
Victoria Jordan
Thank you for taking me through all of this. It's a lot, but it all makes sense.
Laci Buzzelli
It is. It's a ton to think about when hiring your first employee, but again, they're such a crucial part of your business that it's important to think through the steps ahead of hiring.
Victoria Jordan
I totally agree. Thank you so much. Hiring someone is a huge deal, but having experts in my corner makes me feel prepared to take it on. For more information on hiring and recruiting the right employees, go to ADP.com/Hiring101