If you’re a growing business, the time will eventually come that you need to start hiring employees to help you carry the weight and continue to grow. But before you do this, you need to make sure that your business is ready for a new employee, and that the employee in-question is a good fit. I recently read a post on the blog Young Upstarts that looks at what you should do before you finally decide to hire your first employees:
Review your finances: Employees, for all their benefits, cost money. You might be able to pay an employee’s salary for one month, but you need to find out if you can afford the payroll for an extended period. This goes beyond base salary; depending on your state, an employer will also be responsible for employment taxes workers’ compensation, and insurance. One way to attract talent is by offering your employees various benefits, but those cost money too. If you don’t have the finances to make all of this happen, then a freelancer might be the way to go.
Legal: As an employer, you need to navigate all sorts of legal red tape, which varies depending on where you are. So you don’t end up in court for any sort of oversight, consult a lawyer before you end up launching a new business; coughing up a couple hours’ worth of legal fees could save you a huge amount in the future.
Find the right payroll system: While you obviously need to pay your employees, you also need to consider how to provide your staff with the appropriate information on their take-home pay, taxes, deductions, and contributions. Make sure that you have a proper payroll system instated. Do your homework, and find one that works with your budget.
Identify your needs and expectations: By identifying the needs of your business, you can determine what kind of employee you should be hiring. Assess which areas of the business require the most assistance. Consider how an employee will affect your bottom-line as well.