Small Business Smarts: Finding and Hiring the Right Employee

Are you a small business owner on the verge of hiring your first employee? Taking this crucial step can be both exciting and daunting. But it's essential to be well-prepared. Recently, small business owner, Victoria Jordan, spoke with Laci Buzzelli, senior vice president and general manager for ADP Small Business Services. In the video conversation below, Buzzelli outlines the key steps to making informed hiring decisions that can set your business up for success.

Hiring your first employee is a significant milestone for any small business owner. As your business grows, it becomes essential to bring in help to support your operations. However, achieving this goal requires careful planning and consideration. This article is the next in the Small Business Smarts series and explores key steps to help you prepare for your first hire, ensuring that you are well-equipped to make the right decision when the time comes.

1. Assess your financial readiness

First, assess your cash flow. Hiring an employee goes beyond just paying a salary; you need to budget for employer payroll taxes, benefits, and other associated costs.

Action item: Create a detailed budget that reflects these ongoing expenses. This way, you can ensure that your business can afford to take on the new responsibility without compromising your financial stability.

2. Define the job role

Next, sketch out a clear job description. This involves more than just listing tasks; it should outline the responsibilities and skills required for the position. Consider whether you need a full-time or part-time employee and ensure that your expectations align with your company’s goals.

Key considerations for job descriptions:

Responsibilities: What specific duties will this employee handle?
Required skills: What qualifications and expertise are necessary?
Company values: Including your company's mission can help attract candidates who align with your culture.

3. Develop a hiring strategy

Once you have a clear understanding of the role, it’s time to think about your hiring strategy. Where will you advertise the job listing? How will you screen resumes, and who will be responsible for that process?

Things to plan:

Job posting: Identify platforms where potential candidates are likely to search for jobs.
Resume screening: Decide whether you will handle this yourself or delegate it to someone else in your organization.
References: Plan how you will verify candidate backgrounds and check references.

4. Plan the interview process

A well-structured interview process is essential for finding the right fit. Develop job-related questions that will help you assess both the candidate's competencies and their alignment with your workplace culture.

Consider including:

Behavioral questions: These can help you gauge how a candidate has handled situations in the past.
Skills assessments: Short questionnaires or tasks related to the role can further narrow down your applicant pool.

5. Focus on cultural fit

When interviewing candidates, it's essential to consider not only their skills but also how well they fit into your company culture. A strong cultural fit can lead to higher employee satisfaction and retention rates.

Conclusion

Preparing to hire your first employee can be a daunting task, but it is also an exciting opportunity to grow your business. By assessing your financial capacity, clearly defining roles, developing a hiring strategy, and focusing on cultural fit, you’ll be better positioned to make informed decisions that benefit your business in the long run.

Having experts on your side, such as HR professionals or experienced business advisors, can further enhance your preparation and bolster your confidence as you take this significant step.

Download Plan, Launch, Thrive: The Small Business Owner's Toolkit today.

About Victoria Jordan

Victoria Jordan is a seasoned entrepreneur and advocate for small business owners, dedicated to providing resources and insights that empower them to thrive in today’s competitive market.

Video transcript of “Finding and hiring the right employee”

Victoria Jordan: I'm back with Laci Buzzelli from ADP for part two of our conversation about prepping to hire for the first time. In part one, we discussed some prep small business owners can do before they're ready for an employee, but there's another set of things to consider when you're getting closer. Hey, Laci. How are you doing?

Laci Buzzelli: Hey, Vickie. Good to see you.

Jordan: Good to see you, too. Take me through what I need to know.

Buzzelli: So as your business grows and it's time to start thinking about hiring some help, there's a few key things that you'll want to think about. First, make sure your cash flow is in line to hire your first employee. So I recommend setting a budget. Remembering to account for more than just the salary. As a business owner, you're also responsible for the employer payroll taxes and any benefits, if you plan to offer. The next step would be to sketch out a job description. Think about the duties you'll need that employee to fulfill and define their responsibilities clearly. What are the required skills? Will this be a full-time or part-time role? Also, it's really important to share your company's mission and values so that way applicants are clear on what makes your business amazing.

Buzzelli: As you think through your hiring process, you should also consider how you're going to find those applicants. Where will you post the job? How are you going to screen the resumes? Will it be you or somebody else within your business? How will you check references? Investigate how and when to conduct background checks if your state requires them. What does your interview process look like? It's important to build job-related questions. We all know there's nothing worse than an interview that doesn't get you or your candidate the information that you need to make a decision. If it makes sense, create short questionnaires or skills assessments to narrow the pool of applicants. Remember to think of each candidate in terms of their skills and also their fit for your workplace culture.

Jordan: Thank you for taking me through all of this. It's a lot, but it all makes sense.

Buzzelli: It is. It's a ton to think about when hiring your first employee, but again, they're such a crucial part of your business that it's important to think through the steps ahead of hiring.

Jordan: I totally agree. Thank you so much. Hiring someone is a huge deal, but having experts in my corner makes me feel prepared to take it on. For more information on hiring and recruiting the right employees, go to ADP.com/Hiring101.