7 Factors to Consider When Hiring a New Employee

Hiring an employee is an exciting prospect! It means business is booming and you need the extra help on hand to keep up with the demand. And while this can be a great decision that allows you to grow and expand, it needs to be done correctly, with careful considerations in mind.

Not sure what should be on your checklist of things to cover? Before you go posting a job description in the classifieds, make sure you’ve thought through these 7 things first.

1. Are you sure now is the right time?

You need to be sure that your hiring decision is economically sound. For example, you probably don’t want to hire on more servers at your beachfront restaurant if summer is almost over and business will soon be dying down.

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2. Will you hire an employee or an independent contractor?

If you need help right now, but don’t foresee the sustained need in the future, you might consider hiring an independent contractor versus a full- or part-time employee. A freelance worker, such as a web designer or video photography, gets paid on a project basis and you’re not responsible for withholding state and federal taxes from their paycheck.

3. How many hours per week will they work?

There’s no universal definition of what “full-time” means, but generally it refers to an employee who works at least 40 hours per week. A part-time employee, on the other hand, works roughly 10-20 hours per week and their hours may fluctuate.

You do have a third option, however. A seasonal employee can be a great solution to fulfill demand during peak seasons without the expectation to keep them hired on after the rush passes.

4. Are you going to offer benefits?

One factor that may help you decide between how many hours your employee will work is whether you can afford to offer them benefits, as this pretty standard for full-time staff.

If you plan on offering benefits but you can’t afford an impressive 5-star package, you can make your position more attractive with other perks such as work from home opportunities, flexible hours, paid time off, reimbursed childcare, and so on. Little perks go a long way when it comes to boosting company morale—even a catered lunch on Fridays could mean a lot.

Otherwise, you may be able to save money by hiring two part-time employees rather than one full-time employee. But you should still incentivize them to work there with an awesome company culture because happy employees translate into hardworking, motivated employees.

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5. What qualifications are you looking for?

Once you have your hiring parameters in mind, you’ll need to establish some minimum hiring criteria before you can advertise your job listing. Do you need a worker with a formal education, or will a high school student suffice? There may be qualifications or certifications your employee may need to have, such as their CPR training, in the event that you work with children.

Remember that soft skills are just as important as hard skills and experience, so it’s important to scout for leader with great time management skills. Whatever qualifications you establish, be sure to clearly list them in the job description to save yourself the time of weeding through unqualified applicants.

6. Have you set up pre-employment screening?

Even though you may explicitly say “bachelor’s degree and 2-year minimum experience required”, it doesn’t mean that applicants will necessarily adhere to your instructions. They might apply anyway, or in some cases, they might fabricate information to make it seem as though they fit the bill when, in truth, the miss the mark entirely.

Learn how to do a background check that can confirm your applicant is who they say they are, with no relevant criminal records in their history. It’s also wise to reach out to their past employers for personal references on their work ethic and performance.

7. Did you factor payroll costs into your business budget?

Finally, it’s important to consider how payroll and labor costs will impact your business budget. It might be smart to cut down on overhead costs as much as possible until you start seeing an increase of revenue due to the new help.

Cross these off your checklist and you’re on your way to happy hiring!

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