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5 Simple Steps to Hiring Your First Employee

5 Simple Steps to Hiring Your First Employee

It’s awesome to see people creating and growing businesses, particularly when you get to watch them hit certain milestones. Hiring your first employee is one of those milestones. Congratulations!

Whether you’re trying to explode with an innovative tech startup, take your freelancing business to the next level, or anything in between, you’re eventually going to have to hire someone to keep growing.

Don’t worry, it’s not that arduous of a process. Just follow these five simple steps to hiring your first employee!

1. Determine what kind of hire you need.

Do you need a part-time employee, someone to work with you full-time, or someone to whom you can contract out projects and assignments as needed? Maybe you already know the answer. If you’re not sure, answer these three questions first.

How much work is there?

How much work would you be able to give them right now? Another way to phrase this is: How much would you be able to take off your plate, so that you can focus on work only you can do?

How much work will there be?

How much does your new hire need to grow with you? Are you trying to scale? Is the work you’re hiring your first employee to do something you have little-to-no experience in? How important will this person be to you?

How will this affect you financially?

How will choosing a part-time employee, full-time employee, or contract worker affect your finances, tax planning, etc.? Regulations differ between employees and contractors, with an easy differentiator being whether or not you control their schedule.

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It will be best for you to review the IRS’s comparison of independent contractors and employees to better understand the best choice for your situation.

Once you’re able to take a firm stand on which kind of hire you need, then you get to do the most fun job of all!

2. Take care of the paperwork.

Some of this you’ll need to do before you hire, and some of it after. Paperwork is generally everyone’s worst nightmare, but if you take it one step at a time, it doesn’t have to be that bad.

If you’re hiring an independent contractor, things are rather simple. You’ll only need to worry about three forms.

  • Independent Contractor Agreement: This is a form that lays out your professional relationship, ownership of work, and other legal jargon.
  • Form W-9: This is a request for the contractor’s tax ID (or SSN), which is crucial for everyone’s records and payments.
  • Form 1099-Misc.: If you’re going to pay your independent contractor more than $600/yr (likely), then you’ll need to submit this for your end of year tax filings.

If you go on to hire an actual employee, everything changes. It’s not more difficult, per se, but you certainly have more responsibility. Here’s what you’ll need to do.

  • Get an EIN (Employer Identification Number) from the IRS
  • Create records for withholding employee taxes
  • Verify your employee’s eligibility to work in the U.S.
  • Report that you’ve hired an employee to your state
  • Get workers’ compensation insurance (requirements vary by state)
  • Post certain required notices/posters in your office that explain relevant laws

For more information on each of these steps, and a complete guide on how to file your business taxes, click here.

Hiring an independent contractor is probably looking good right about now, but that’s not always the best fit. Before making any assumptions, be sure to review point #1 and the linked guides.

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3. Create a job posting.

How should you approach your job posting?

First things first, you and any partners you have need to know what you’re looking for. If you’re not entirely sure, or if your group can’t come to an agreement, try answering these questions.

  • What’s currently your biggest pain point? What could be done to alleviate that pain point?
  • What will be your biggest pain point in six months? What will you need to do to alleviate that pain point?
  • Would you need your hire to more frequently follow a list of instructions, or have autonomy in their work?
  • Will their duties be more task-oriented, creative, project-oriented, or strategic?
  • What interaction will your hire have with you and/or any partners you have?

Once you’ve answered these questions, then you’re ready to craft a job description. Your job description should include:

  • A description of your company
  • A description of your ideal candidate
  • Key or primary duties
  • Less frequent responsibilities
  • Targeted compensation range and any benefits

How should you present your opportunity?

You might hear recommendations to focus on keywords, which many interpret to mean “use a lot of buzzwords.” Don’t do that. Instead, focus on accurately representing your company.

If you’re a trendy creative agency run by a few twenty-somethings, mirror your job description to that personality. If you’re a private practice lawyer looking for a secretary, act like it.

The degree to which you should be professional or casual in a job description depends on the degree to which you are professional or casual in your work.

Now you need to post that job description. Uploading it to Proven will automatically post it to all the major job boards, like Monster, Indeed, and 100+ others. Then you’ll get any responses aggregated through Proven instead of having to go to every individual job posting site.

It’s also a best practice to share your job posting across Facebook, LinkedIn and other social networking sites. After all, you’ll probably trust a friendly referral over a stranger’s application.

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4. Conduct the right interviews.

Once you start talking to candidates who meet your criteria, I’ll trust that you know enough about your business and the personalities involved to make the right choice. But here are a few tips for what might be your first time interviewing people.

Don’t talk about these things.

There are a handful of questions you need to stay away from for legal reasons, like those relating to age, marital status, arrests, sexual orientation, mental health, religion, and race.

Basically, stay away from everything people would recommend avoiding during a dinner conversation.

If you get into these topics and choose not to hire that candidate, you could be on the chopping block for discrimination. No one wants that.

For a full breakdown, refer to the Equal Employment Opportunity Commission.

Confirm compensation.

Make sure you and your candidate are in the same ballpark regarding compensation. If those expectations are not met first, everything else is liable to fall apart.

That’s why it’s important to have this information in your job posting, and why you should confirm you’re on the same page early on.

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Ask either of these two questions.

What would be your ideal situation? Or, what are you looking for in your next step?

Either of these questions should help you to flush out whether your candidate is spewing whatever they think you want to hear to get the job, or if the two of you would actually be a good fit.

A good follow up question could be: What would be a deal breaker for you?

On one hand, you can see if there’s going to be tension with this hire in the role you need. On the other hand, you get to see if they actually know what they want.

5. Take your pick.

If you’re following these simple steps to hiring your first employee, then you have so far decided what’s best for you, completed the appropriate paperwork, put the word out about your opportunity, and spoken with several candidates.

Now all you have to do is actually hire someone! (And finish the appropriate paperwork; see point #2.)

Running a business is a difficult process, and finding the right personnel can be a big stressor. How do you find the right people? How do you make sure your own tail is safe come tax season? But this doesn’t have to be that stressful. Just follow these simple steps to hiring your first employee, and you’ll be good to go!

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Kenneth Burke

Director of Marketing

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Last Updated on March 29, 2021

5 Types of Horrible Bosses and How to Beat Them All

5 Types of Horrible Bosses and How to Beat Them All

When I left university I took a job immediately, I had been lucky as I had spent a year earning almost nothing as an intern so I was offered a role. On my first day I found that I had not been allocated a desk, there was no one to greet me so I was left for some hours ignored. I happened to snipe about this to another employee at the coffee machine two things happened. The first was that the person I had complained to was my new manager’s wife, and the second was, in his own words, ‘that he would come down on me like a ton of bricks if I crossed him…’

What a great start to a job! I had moved to a new city, and had been at work for less than a morning when I had my first run in with the first style of bad manager. I didn’t stay long enough to find out what Mr Agressive would do next. Bad managers are a major issue. Research from Approved Index shows that more than four in ten employees (42%) state that they have previously quit a job because of a bad manager.

The Dream Type Of Manager

My best manager was a total opposite. A man who had been the head of the UK tax system and was working his retirement running a company I was a very junior and green employee for. I made a stupid mistake, one which cost a lot of time and money and I felt I was going to be sacked without doubt.

I was nervous, beating myself up about what I had done, what would happen. At the end of the day I was called to his office, he had made me wait and I had spent that day talking to other employees, trying to understand where I had gone wrong. It had been a simple mistyped line of code which sent a massive print job out totally wrong. I learn how I should have done it and I fretted.

My boss asked me to step into his office, he asked me to sit down. “Do you know what you did?” I babbled, yes, I had been stupid, I had not double-checked or asked for advice when I was doing something I had not really understood. It was totally my fault. He paused. “Will you do that again?” Of course I told him I would not, I would always double check, ask for help and not try to be so clever when I was not!

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“Okay…”

That was it. I paused and asked, should I clear my desk. He smiled. “You have learnt a valuable lesson, I can be sure that you will never make a mistake like that again. Why would I want to get rid of an employee who knows that?”

I stayed with that company for many years, the way I was treated was a real object lesson in good management. Sadly, far too many poor managers exist out there.

The Complete Catalogue of Bad Managers

The Bully

My first boss fitted into the classic bully class. This is so often the ‘old school’ management by power style. I encountered this style again in the retail sector where one manager felt the only way to get the best from staff was to bawl and yell.

However, like so many bullies you will often find that this can be someone who either knows no better or is under stress and they are themselves running scared of the situation they have found themselves in.

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The Invisible Boss

This can either present itself as management from afar (usually the golf course or ‘important meetings) or just a boss who is too busy being important to deal with their staff.

It can feel refreshing as you will often have almost total freedom with your manager taking little or no interest in your activities, however you will soon find that you also lack the support that a good manager will provide. Without direction you may feel you are doing well just to find that you are not delivering against expectations you were not told about and suddenly it is all your fault.

The Micro Manager

The frustration of having a manager who feels the need to be involved in everything you do. The polar opposite to the Invisible Boss you will feel that there is no trust in your work as they will want to meddle in everything you do.

Dealing with the micro-manager can be difficult. Often their management style comes from their own insecurity. You can try confronting them, tell them that you can do your job however in many cases this will not succeed and can in fact make things worse.

The Over Promoted Boss

The Over promoted boss categorises someone who has no idea. They have found themselves in a management position through service, family or some corporate mystery. They are people who are not only highly unqualified to be managers they will generally be unable to do even your job.

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You can find yourself persistently frustrated by the situation you are in, however it can seem impossible to get out without handing over your resignation.

The Credit Stealer

The credit stealer is the boss who will never publically acknowledge the work you do. You will put in the extra hours working on a project and you know that, in the ‘big meeting’ it will be your credit stealing boss who will take all of the credit!

Again it is demoralising, you see all of the credit for your labour being stolen and this can often lead to good employees looking for new careers.

3 Essential Ways to Work (Cope) with Bad Managers

Whatever type of bad boss you have there are certain things that you can do to ensure that you get the recognition and protection you require to not only remain sane but to also build your career.

1. Keep evidence

Whether it is incidents with the bully or examples of projects you have completed with the credit stealer you will always be well served to keep notes and supporting evidence for projects you are working on.

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Buy your own notebook and ensure that you are always making notes, it becomes a habit and a very useful one as you have a constant reminder as well as somewhere to explore ideas.

Importantly, if you do have to go to HR or stand-up for yourself you will have clear records! Also, don’t always trust that corporate servers or emails will always be available or not tampered with. Keep your own content.

2. Hold regular meetings

Ensure that you make time for regular meetings with your boss. This is especially useful for the over-promoted or the invisible boss to allow you to ‘manage upwards’. Take charge where you can to set your objectives and use these meetings to set clear objectives and document the status of your work.

3. Stand your ground, but be ready to jump…

Remember that you don’t have to put up with poor management. If you have issues you should face them with your boss, maybe they do not know that they are coming across in a bad way.

However, be ready to recognise if the situation is not going to change. If that is the case, keep your head down and get working on polishing your CV! If it isn’t working, there will be something better out there for you!

Good luck!

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