One of the most difficult things about running your own business is knowing when it is time to hire employees and how to do so. If your business has until now been carried out solely by yourself or a pair/group of cofounders, making the jump from â€œself-employedâ€ to â€œemployerâ€ can feel daunting. Here is everything that you need to know if you are considering hiring other members of staff for your company for the first time.
Also read: how to hire your first HR person
Make Sure You Can Afford to Pay Employees
Of course, the first thing to work out is if your business actually has the finances available to pay employees. Employing others is, of course, a way to increase your overall profits. However, you should have enough funds at the time being, and for the foreseeable future, to pay employee wages.
If you are thinking of hiring employees, it is likely because your company is expanding and it is no longer possible for yourself and/or your companyâ€™s cofounders to carry out operations without help. This probably means that your company is growing and becoming more profitable, so hiring staff is likely to be possible, but you should still double check. Making cash flow projections is a useful way of doing this. Really understanding the business, the expenses/revenue, and how things operate is a key fundamental for great HR.
Write an Appealing Job Posting
Attracting potential employees is often down to a good job posting. Job postings can be on online jobs boards, in local newspapers, on your company website, or even printed and left on physical noticeboards. What makes a job posting appealing differs based on the industry and audience, but it is usually best to write with a friendly tone of voice, be transparent about your working processes and what you are looking for and include the salary that you can offer.
When it comes to the interview, you will need to be just as friendly and approachable as the content in your job posting.
Write an Employee ContractÂ
Unfortunately, there can often be disputes or misunderstandings between employers and employees. Although effective HR is essential for a business to function, you can pre-emptively avoid a lot of issues by designing a contract (including expectations of the role) to be signed by yourself and any employee. If you arenâ€™t sure how to design a contract, why not consult an expert on employment law?
Make a Plan for Workers Compensation
Avoiding catastrophes in business involves planning for disaster. Although your business should have effective health and safety procedures and training, it is still always possible for accidents to occur and workers compensation to need paying. Workers compensation insurance is not legally required everywhereâ€”the laws on workers compensation in Georgia, for example, differ from those in other statesâ€”but is highly recommended even if it is not compulsory in your state.
Plan an Effective Yet Flexible Training Program
Even if you hire an employee who is experienced and qualified in everything that their job role requires, it is still most likely that a specific training program that helps them learn how your workplace specifically carries out operations is best. An employee who does not feel supported at work is unlikely to remain loyal to the company.
Hiring Your Employees: A SummaryÂ
Hiring your first employee is a momentous occasion for your business, and by taking note of the above advice, you are sure to make the process much smoother and even more enjoyable once you get into the swing of things. It should also have a positive long-term impact on your business.