Hiring an employee is a nerve racking prospect for a small business owner. 75% of small business have no employees. Adding employees increases the skill base of the company, and the amount of work which can be done. Shifts can vary to increase store hours, teamwork may increase efficiency, more customers can get individualized attention.
However, you are responsible for your employees. Luckily, for small business owners, many OHSA regulations don’t kick in until the company reaches a certain size. Thus legal requirements for 5 employees are much less than for 35 employees. However, laws such as minimum wage still apply.
Running advertisements for employees is expensive and results in many resumes to sift through. Additionally, those people may know nothing about your company. However, customers and current employees who enjoy their jobs may be some of your best referrals. Posting job openings on your website appeals to people already interested in , and possibly knowledgeable about, your company and products.
Non traditional methods can also work well if employees are carefully screened.
Example Hiring Your First Employees Great people are attracted to work for great leaders and great companies Worst thing you can do is hire the best of a bad bunch, or put someone on staff simply because they're related to you Maximize three personal qualities: Mind Heart Spirit
When matching the worker to the task, you first have to have a good idea of what the job entails. In the Job analysis you determine why the job exists, and what you expect from the employee performing the job. A Job Description is found on the next slide.
The job description is given to employees to let THEM know what their duties are. Be careful not to limit their tasks to only what is listed, use a line such as “and other tasks as needed” because in a small business flexibility is necessary.
A formal process will help evaluate all prospective employees on an even playing field. Using observers or other interviewers will also help by providing other observation you might have missed. Never hire below your standards. If you can’t find a good candidate, consider a temp agency until the position can be filled.
Training is important. More knowledgeable skilled employees can perform their jobs more efficiently and correctly.
On the job training happens at the work place during the normal course of the day. Salesmen usually shadow other salesmen, as do waitresses, to learn how to deal with customers. Apprenticeships are normal in contracting, electrical, plumbing, and other related fields. Off the job training involves taking courses at local colleges and going to seminars.
On the job training happens at the work place during the normal course of the day. Salesmen usually shadow other salesmen, as do waitresses, to learn how to deal with customers. Apprenticeships are normal in contracting, electrical, plumbing, and other related fields. Off the job training involves taking courses at local colleges and going to seminars.
Good employees want more than a paycheck. They want to enjoy coming to work every day. They want to be trusted, rewarded, and recognized.
Once a business has employees, they must be paid and evaluated. It is recommended that you keep the pay and performance reviews separate.
When paying employees find the going wage rates in your market. A temporary agency or employment agency in your area may be able to give you a list of general wage ranges for job types.
Bonuses for success are always welcome. While large companies may give stock options, small business owners may not want to give up their control. However, letting employees share in the profits they produced is always welcome. Health insurance is the most requested benefit but it is very expensive. Consider sharing the cost with employees or providing basic coverage and letting them add on extra coverage.
Retirement plans encourage longer term employment. And Matching plans are also welcomed. Other, non-financial, rewards are more easily given by cash strapped small businesses.
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