PBFN Connections - 2003, Vol. I

Growing Your Business: So it’s time to hire an employee(s)?

It's a nice problem to have: your business has been so successful that you're ready to hire your first employee or expand your current staff. But too many employers rush to staff their companies without fully evaluating what their needs really are. As a result, they jump into the hiring process without a clear idea of the skills, background and personality needed of the new employee.

Going about it the ‘right’ way

Everyone knows they need people; however, companies do not necessarily think about having the right job description, right interview questions, etc. By articulating the right job description and preparing the right interview questions, you can hire the right person. Furthermore, the right job description provides the recipe for aligning employee responsibilities and accountabilities within the core business objectives.

In today’s information-based economy, much of an organization’s value resides in its people. It is the people, processes and technologies that are an organization’s source of innovation and competitive advantage.

So, how do you go about finding the “right” people? According to online business tool, Small Business Depot, the best way to find the right person for the job is to create a staffing plan. Just as a business plan outlines a strategy for profitability, a staffing plan can serve as a roadmap for smart hiring decisions. The first step is to evaluate your needs and actually list them on paper.

Here are some of their recommendations for getting started:

Create a list of business functions. Think about the work your company routinely performs. These functions may, for example, include customer service, order processing, marketing, sales and bookkeeping. This list will give you a basic idea of the types of positions you may need to fill.

Write job descriptions for each function. The first step is to identify the responsibilities of the position. Then convert those responsibilities into physical activities. A marketing manager, for example, would be responsible for publicizing your business. The specific skills needed to do that would include the ability to create an ad campaign, write ad copy, work with the media, and so on. Remember that the job description provides the recipe for aligning employee responsibilities and accountabilities within the core business objectives.

List personal attributes. Once you know the duties and responsibilities of a job, put together a list of personal attributes that a person who performs those tasks should have. Take that list and compare it to people who have been successful in the same position. If this is a new position, consult with colleagues at other companies. Ask them about their successful hires. Did those people possess the attributes you have identified as critical to success? You may be surprised by what you find. Some people who are outgoing, for example, may not be good at making sales calls to prospective customers because they fear rejection.

Try searching for a candidate via networking. If you don't have to hire somebody this minute, and even if you do, first try to find an employee through networking. For more tips on recruiting through networking, access this issue’s Networking Works

The Interview. Questions, ask many questions. Ask them of yourself, and ask them of your potential hires. Also, mentioning that you're a start-up is important because certain personalities work well with the unpredictable nature of a new business, while others don't. Beyond the interview, ask for references and, if applicable, writing samples or a portfolio.

But most importantly, keep it legal. Stay away from topics such as religion, ethnicity, sexual orientation, whether they are married and whether they have or want children. Though these may seem like innocent ‘get to know you’ topics, if you choose not to hire this person, these innocent questions could come back to haunt you.

AFTER THE HIRE

HR policy manuals and HR policies

A highly recommended, proactive approach to establishing strong human resources practices is to clearly communicate performance expectations to employees through written policies and procedures. An employee handbook should be distributed to every employee. All employees should be required to sign and return an acknowledgement indicating they have received the handbook and understand the performance expectations contained within. This practice assures compliance with current laws and regulations and clarifies employees’ understanding of workplace rules.

The personnel guide should provide guidance and structure for all major functions of HR, helping companies to avoid complaints, grievance and morale issues, which are often the result of poor communication, unwritten or inconsistent policies and practices. Policy development and distribution is only part of the equation for establishing strong human resources practices. In order for policies to have meaningful impact, they must be consistently administered. Policies must also be clearly understood by core management and then communicated throughout all levels of the organization.

From personnel forms to benefits

W-2s. Payroll taxes. Social Security. 401(k)s. Health insurance benefits. Even if the latter two aren't part of your initial program, the paperwork that goes into hiring an employee can be mind numbing. According to Entrepreneur.com, that's why the general consensus is: Have someone else do it for you. Do not go it alone.

So where do you go for help? If you're going to offer a health plan, you need to find a reputable health insurance agency to work with. But if you want to get payroll off your hands as well, look into hiring a service such as Paychex or Automatic Data Processing (ADP) Inc., two services that can also help you with a 401(k), health benefits and just about anything else you'd need. There are plenty of other good payroll companies out there--just make sure you do your homework.

It’s all about the people

Whether included in annual reports, posted in break rooms or communicated through other channels, most companies share a consensus: People are their most valuable asset. Successful companies know this and hopefully as a budding entrepreneur you will, too.

Coming up in December

You’ve got your staffing plan in place and have successfully hired the perfect employee(s). How do you go about making the most of your most important investment? In the next edition of PBFN Connections, we will focus on the importance of human capital management and the role its success plays in the growth of your business.

Looking for more?

From sample interview questions to downloadable personnel forms, Entrepreneur.com has interactive online tools to assist you with getting started hiring and setting up your new employee(s). www.entrepreneur.com/tools/hiring

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