As your company grows, you may find that the workload has also increased to the point that you need a helping hand to expand further. Many home businesses can indeed thrive if you simply work for yourself as a sole proprietor, but additional workers can give you more options to further expand your business.
Hiring employees does come with some complications. For starters, your tax plan and even the type of business you run will change when you add employees to the mix. You need to ensure that everything is legal and above board. You also have to deal with the measure of risk that comes along with paying someone for work.
So, with this in mind, here is a guide to help you hire employees and build a team that can work well together.
Hire or Outsource
The first thing to consider is whether to hire an employee or outsource a role to a freelancer or consulting company.
Deciding whether to hire or outsource means that you need to work out exactly what you need someone to do for your company. Do you need a professional who can tackle a short-term project or a small, but specialized role? Or do you need someone who can fill a larger role in your company that would require longer hours and a long-lasting contract?
In the former case, outsourcing is often the better option. When you hire an employee, you are responsible for more than just a salary. You have to work out benefits, as well as ensure that your company meets employer standards in your area.
When you outsource, you can benefit from someone’s experience and manpower, but you act as a client rather than an employee. This means that you don’t have the same responsibilities. Also, a freelancer will have multiple clients, so they are perfect for helping with a temporary project or performing a role that only needs a few hours of work at a time.
Outsourcing might have higher up-front costs, but it’s a more viable option for certain roles such as IT support, customer service support, financial and tax advice, and legal consultation.
Hiring and Interviewing
If you decide an employee is a better fit for your company, you should work out a job description and role. This includes figuring out what responsibilities the role will have, what qualifications it requires, and a fair salary for the job. You can look at similar job descriptions that other companies have advertised to figure out what kind of thing applicants will be looking for.
From there, you should screen your candidates. If you get a lot of candidates, you can use AI software to screen applications. Not everyone will be a good fit for the role, and screening can help you sort through applications that are obviously not suitable without wasting time.
Once the applications are narrowed down, you can look through them and compile a short list of people to interview. The interview process is where you get to know a person and see how they work and think. Someone might have all the qualifications and experience you could hope for and be amazing on paper, but they might not be the best fit in person.
Have a few interviews and consider a trial period with your chosen candidate. Hiring is expensive and time-consuming, so it pays to find the right person rather than have employer’s regret later down the line.
Salary and Payroll
Understandably, employees want to get paid and appropriate amount of money and at regular times. You should determine the appropriate salary and hours before you hire, and this will be discussed further in the interview phase. If you try to underpay potential candidates according to the role and qualifications your company needs, you’ll run into hiring issues very quickly.
You should also pay promptly and when agreed. If you agree to pay someone each week on Fridays, you need to send that payslip out for that time. Otherwise, you open yourself up to legal trouble, as well as morale issues with your employees.
Finally, it’s common practice to give employees raises after a certain amount of time. While this isn’t compulsory, many employees will actively seek out better job opportunities if they feel unappreciated or if they simply can’t afford the rising cost of living on your salary. Regular raises and bonuses, as well as other benefits, keep employees around.
Managing Employee Schedules
On a similar note, employers are responsible for scheduling their employees. With just one employee, this can be fairly simple, but if your company uses multiple employees who work different shifts, scheduling can become very complicated very quickly.
A time clock for employees can help you and your employees keep track of how much work they’ve done and when. It can prevent issues with pay, especially if you pay by the hour, and can even help managers notice regular timekeeping issues.
As well as using a time clock, a scheduling app can allow you to assign shifts to employees fairly and well in advance. This means they know when to come to work during the week, reducing the risk of accidental no-shows. It also allows you to ensure that shifts are fair and evenly distributed, as well as factoring in any specific needs of the employees.
You should also discuss holidays and sick days with employees. Different companies have different guidelines. The most important thing is that you stick to local regulations, as some governments require a minimum amount of sick leave.
If possible, be flexible with your employees. One of the best ways to encourage loyalty is to take the first step in treating employees well and with respect. This way, if you ask for the extra mile, they’re more likely to reach out and help.
Keeping Morale High
As you might have noticed by now, a large part of managing employees comes down to managing morale. People seek out work that provides what they need in life, whether that’s a good salary or a fulfilling and satisfying job.
Modern employees don’t have the same loyalty as employees who used to spend their entire working life with one company, but this isn’t necessarily a bad thing. People are more likely to shop around for better options, so the key to keeping employees around is to be one of the better options in the industry. This way, you don’t just keep your employees, but you can also attract skilled workers for other roles and build your team.
You can keep morale high by treating employees fairly. Good wages and good benefits are a great way to do this, as it prevents people for feeling pressured into finding a better-paid job. But there’s more to work than what you get paid for it.
Try to build a team that works well together. A hostile work environment might seem productive, but it often has a negative effect on employees. This, in turn, can reflect on the quality of their work. Don’t sacrifice morale for efficiency, because neither win out in the end.
Communicate with employees and listen to any suggestions or concerns. While you don’t have to implement every suggestion under the sun, people appreciate being heard and listened to. Besides, employees in the field might see things differently and have some genuinely good ideas that benefit the company. Encourage innovation, as everyone thrives.
Employee Training
Another great way to incentivize employees to stay in your company and to acquire skilled workers is to offer training opportunities. Depending on your industry, different universities and other educational institutions can offer work-specific training and courses to help employees further their careers.
Some institutions are willing to work with employers to discount certain courses, meaning that you can subsidize training and education costs, making it a more attractive option for workers. People can then progress within your business, so you don’t have to find skilled workers elsewhere.
In some industries, such as the medical field, regular training is compulsory. This is so medical and administrative staff are up to date on the legal guidelines and medical practices they need to fulfill their jobs safely. Neglecting this training can have devastating consequences, so its vital that employers in these fields ensure that staff are appropriately trained.
You can also encourage employees to train in “soft skills”. These are skills that aren’t necessarily required for a role, but that can be helpful in an office environment. For example, first aid training might not crop up in someone’s day-to-day role, but it’s recommended that each office have at least one certified first aider. Other skills include communication skills, management training, and health and safety training.