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5 Hiring Tips for Every Small Business

1 month ago
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5 Hiring Tips for Every Small Business
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Small businesses have reported record high levels of job openings this year, positively impacting job growth following the pandemic. Are you in a position to add staff? Hiring is one of the most important things a small business owner will do to spark company advancement. Here are some important steps to consider when bringing on new employees.

Determine if you need a full-time employee or freelancer

It’s important to understand the difference between hiring an employee and working with an independent contractor. Determining the right fit for your small business will help you determine what taxes need to be withheld and may help you avoid legal trouble.

An independent contractor typically operates under a business name, invoices for work completed, can have more than one client, and sets their own hours. An employee typically performs duties dictated or controlled by others and works for only one employer on a set schedule. Typically, benefits like health insurance and paid time off are included in an employee’s total compensation package.

Before you start your search, look at the scope of the position and talk to a financial professional about tax implications. For more information to help you make an informed decision, visit our blog: Employee or Independent Contractor: Which One Is Best For You?

Create a great “help wanted” post

A job post is a marketing tool, not just a help wanted ad. Instead of only listing tasks, include specific details about your business. The headline: “Receptionist needed for dentist office” may attract more applicants worded this way: “Personable and Positive Receptionist Needed for Family-Oriented Dental Practice.” Adjectives are your friend!

Small business owners need to convey the aspects of their corporate culture to attract a top candidate. Include basic information about hours, responsibilities, and salary but try not to come across as cold and impersonal. Possible applicants should read your ad and get a good feel for how passionate you are about your business and the job you are hiring for.

Be sure to end your ad with an action item, such as: Please send your cover letter and resume in the body of an email with your salary requirements to xx@xxx.com by Friday, August 7. If you prefer, you may want to consider setting up a separate email inbox to collect responses. And be sure to reply quickly and courteously, even if the applicant isn’t right for your business.


Don’t forget about networking

A great way for a small business owner to find a solid employee is by networking. Ask for suggestions from friends, family, vendors, industry colleagues, and other professionals like your accountant or attorney. You can also ask for recommendations from your network by sharing on LinkedIn®.

Have you joined a local business networking group? You can generally find one in almost every city around the world. Groups typically meet monthly and might include speakers or workshops that offer great strategies for running your small business. Check out your local Chamber of Commerce here to find a group that’s a good fit for you and your business. You may also find networking groups through online sites like MeetUp.com®. There are also numerous societies and organizations for specific industries, from children’s book authors to healthcare marketing. Most organizations offer conferences or online networking opportunities.

Make sure your paperwork is in order

If you’re hiring a new employee, you’ll need an employment identification number (EIN) from the U.S. Internal Revenue Service. The EIN is necessary for reporting taxes and other documents to the IRS. There are other forms and required information when you bring on small business employees. Visit the Small Business Association website for more details. Additionally, set up an employee file for each new hire that includes important information like an employee contract and emergency contact information. Quickbooks® has a comprehensive list to help you build each file.

Never stop recruiting

“The moment you’re done hiring, you should be keeping your antennae up for the future. That’s something that flexible smaller companies are able to do that bigger firms, often weighted down with policies and procedures, cannot,” says Joe Kennedy, author of The Small Business Owners Manual.

It’s important to keep in mind that a small business new hire has a big impact on the company’s productivity and culture. Constantly strive to attract passionate, engaged, and committed team players. As you network, you may come across a potential team member with valuable experience that can help your small business thrive. Never be afraid to ask if someone is looking for new opportunities, or if they would be interested in talking more in the future.

Do you need extra funds for growing your team? Visit SmartBiz® today and discover in about five minutes if you’re qualified for a Small Business (SBA) loan. SBA loans are generally regarded as one of the best bets for small businesses with low rates, long terms, and low monthly payments and can be used to hire new employees.

 

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