This article was updated on September 11, 2018.
Seasonal hiring for small businesses can be a challenge. You need to expand your workforce and get employees up-to-speed quickly so they're ready for your upcoming launch. With summer around the corner, here are five best practices for seasonal hiring.
1. Contact Quality Employees Early
If you want to hire former employees, get in touch with them as soon as possible. This will help you lock down their commitment to your business before they make other plans. This has become even more important in recent years as the economy has improved and workers have more job opportunities. Consider offering experienced employees a pay raise as an extra incentive — quality staff will be invaluable during your busy season.
2. Outline Responsibilities for New Applicants
Clearly explain the job requirements when you post ads and interview candidates. Outline responsibilities, hours and dress code, and emphasize how busy the job can get and that it's a temporary position. Ensuring new employees understand what they are signing up for reduces the chance of turnover, which is something you can't afford during your busy season.
3. Review Minimum Wage and Overtime Laws
Check the labor regulation laws in your state to determine if they have changed over the past year. Confirm whether you need to pay overtime. According to the U.S. Department of Labor, seasonal businesses in the amusement and recreation industries do not have to pay overtime if they operate fewer than seven months of the year and the receipts from the six slowest months of that year are no more than 33.3 percent of the receipts from the six busiest months. Review these laws with your accountant as you set up payroll to determine whether your company meets these criteria.
4. Renew Your Workers' Compensation Insurance
Seasonal hiring for small businesses doesn't require you to offer health insurance, however, you must have workers' compensation insurance. If you let your policy lapse during the offseason, be sure to renew or obtain a new policy — otherwise you may risk government fines, business shutdown and possible lawsuits from your employees if they are injured on the job.
5. Train Your Employees
Once you've hired staff, schedule time for them to undergo paid training. Be sure to walk them through their responsibilities before you open. During your first few weeks of business, you or other experienced employees should be accessible in case they run into problems. When your business has a short window to make money, learning on the job isn't always a viable option.
Summer will be here before you know it, so it's important to plan your hiring strategy properly in advance. Using these hiring practices can help your business stay on the right track for a successful season.
This does not involve the offer or sale of insurance products. All insurance products will be offered and sold only through Automatic Data Processing Insurance Agency, Inc., its licensed agents or its licensed insurance partners, One ADP Blvd. Roseland, NJ 07068.
SIGN UP FOR THE SPARK NEWSLETTER