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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 January 13, 2020

Is It Time for a Career Change? (And How to Make the Change)

Is It Time for a Career Change? (And How to Make the Change)

Are you challenged at work? Do you regret career decisions? Are you happy? If the answer to the questions leads to a negative feeling, it is time to determine next steps.

Many people settle for a career that no longer brings satisfaction. Most will respond by stating, “I am surviving” if a colleague asks them “How’s work?”

Settling for a job to pay bills and maintain a lifestyle is stagnation. You can re-direct the journey of a career with confidence by taking control of future decisions. After all, you deserve to be live a happy life that will offer a work-life balance.

Let’s look at the reasons why you need a career change and how to choose a career for a more fulfilling life.

How to Know if You Need a Career Change?

The challenges of dissatisfaction in a career can have a negative impact on our mental health. As a result, our mental health can lead to the obvious appearance of stress, aging, weight gain and internal health issues.

You deserve a career that will fulfill the inner desire of true happiness. Here are common factors that it is time for you to change your career.

Physical Signs

Are you aging since you started your job? Do you have anxiety? What about work-related injuries?

It feels amazing to receive a pay cheque, but you deserve to work in an environment that brings out the best of you. If the work environment is hazardous, speak to your boss about alternative options.

In the case that colleagues or your boss take advantage of your kindness, feeling the anxiety of fear of losing your job because of a high-stress environment may not be right for you.

Mental Signs

One out of five Americans has mental health issues, according to Mental Health America.[1] In most cases, it is related to stress.

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I remember working at a job in a work environment where harassment was acceptable. I had to walk on eggshells to avoid crossing the line with colleagues. My friends started to notice the difference in that I seemed out of character. It was then that I knew that changing a career to freelancing was the right decision.

Here is a list of mental signs of workplace unhappiness:

  • The tension in your neck
  • Difficulties with sleeping
  • Unable to concentrate
  • High anxiety
  • Depression

If you start to feel your self-esteem is diminishing, it is time to consider if working in a high-stress industry is for you. The truth is, this negative energy will be transferred to people in your life like friends and family.

Are You Sure You’re Not Changing for the Wrong Reason?

Most people that feel they need a career are frustrated with their situation at work. Do you really understand your current situation at work?

The reason it is important to think about the work situation is some people decide to change career for factors that are insignificant. Factors that can potentially change if the person works in a different department or new organization.

Here is a list of unimportant factors to think about before you decide to make the transition:

Desire for an Increase of Salary

The desire for a higher income can persuade some to believe they are in the wrong career. The issue with this is more money requires more time in the office or taking on several positions at a time.

At times, pursuing a high-income role can be the complete opposite of what one is expected. It is what happens when a colleague leaves a company to a new one and returns several years later.

Overnight Decision

Let’s face it. We make overnight decisions when stressed out or disappointed with situations at work. The problem with a quick decision is the negative and positive points is overlooked.

Rejected for a Promotion

I have heard stories of managers that applied ten times for a position throughout a 5-year period. Yes, it sounds to be a lengthy process, but at times, a promotion requires time. Avoid changing a career if you do not see the results of a promotion currently.

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Bored at Work

Think deeply about this point. If you work a job that is repetitive, it is normal to feel bored. You can spice it up by changing the appearance of your desk, socializing with new employees in a different department, joining a leadership committee at work or coming to work with enthusiasm. Sometimes, all it takes is you to change jobs into a fun situation.

A career change can take time, networking, education and the job search process can be a journey. Here is a list of things to consider before making a final decision:

  • How long have you worked in your career?
  • What is the problem at work? Do you work well with the team?
  • Do you receive recognition?
  • Can you consider working in a new department?

If after reviewing your work situation and none of the above recommendations can help, then it’s time to make a career change.

How a Career Change Will Change Your Life

I have a friend that works in the medical industry. She was once a nurse working directly with patients in one of the top hospitals in her area. After five years, she started to internalize the issues with her patients to the point where she felt depressed after work hours. It impacted her relationship with her family and she almost lost herself.

One day, she decided to wake up and take control of her destiny. She started applying for new medical jobs in the office. It meant working on medical documentation of patients which is not an ideal career based on what society expects a medical professional to perform. But she started to feel happier.

It is a classic example of a person that was negatively impacted by issues at work, stayed in the same industry but changed careers.

A career change can fulfill a lifelong dream, increase one’s self-esteem or revive the excitement for one’s work.

You know a career change can be the right decision to make if you experience one or all of these:

  • Working in a negative workplace: Don’t be discouraged. A negative workplace can be changed by working at a new organization.
  • Working with a difficult boss: The challenges of working with a difficult boss can be stressful. All it takes is communication. You can address the issue directly with a manager professionally and respectfully.
  • Feeling lost about what you do: Most people stay at their jobs and settle for mediocrity because of the fear of failure or the unknown. The rise to success often comes with working a tedious role or stepping outside of one’s comfort zone. If you fear the idea of being involved in activities that are new, remember that life is short. Mediocrity will only continue to make you feel as if life is passing you by.

How to Make a Career Change Successfully

The ultimate key to success is to go through a career transition step by step to avoid making the wrong decision.

1. Write a Career Plan

A career plan has a dead line for action steps that includes taking new courses, learning a new language, networking or improving issues at work.[2] A career plan should be kept in your wallet because it will motivate you to keep pursuing the role.

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You can learn how to set your career plan here.

2. Weigh Your Options

If you have a degree in Accounting, write down five positions in this industry of interest. The good news is diplomas and degrees can be used to a variety of roles to choose.

You don’t have to stick to what society holds a top job. In the end, choosing the right role that will make you happy is priceless.

3. Be Real About the Pros and Cons

It is time to be honest about strengths, weaknesses, opportunities and threats in the job market that are impacting the current situation.

A SWOT Analysis of a career can include:[3]

  • Economic factors
  • Direct competition: Is this role in high demand?
  • Location: Do you need to move? If the goal is to work in tech and living in Cincinnati is not realistic, consider moving to San Francisco.
  • Achievements: To stand out from the competition achievements like awards, committee involvement, freelance work or volunteering is a recipe for success.
  • Education: Do you need to go back to school? Education can be expensive. However, online courses, webinars or self-study is an option.

    A career blueprint is the first step to creating realistic goals. A person without goals will be disappointed without a clear direction of what to do next.

    4. Find a Mentor or Career Coach

    A mentor or a career coach that works in the desired position can share the pros and cons of working in the role. Here is a list of questions to ask a mentor:

    • What is required to be successful in the role?
    • What certification or educational development is needed?
    • What are the challenges of the role?
    • Is there potential for career advancement?

    A chat at a coffee shop with a mentor can change your mind about the desire for a career change.

    Find out how to pick a good mentor for yourself in this article: How to Find a Mentor That Will Help You Succeed

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    5. Research Salary

    Some people decide to change careers for a role that pays less or perks like benefits to make up for the difference in previous to potential salary.

    It can reveal the cities throughout the country that offer a higher salary for those that have an interest in relocating for work.

    6. Be Realistic

    If your goal is to move up into an executive position, it is time to be honest about where you are in your career.

    For example, if boardroom meetings, high-level discussions about financials or attending weekly networking events are boring, an executive role may not be right for you. If you are an introvert and working with people every day is nerve wrecking, you need to reconsider a job in sales.

    Ask yourself if you can work in this role for the next five years of your life. If other benefits that come with the role are enticing, other roles are fit that will make you happy.

    7. Volunteer First

    A person that wants to become a manager should take on volunteer opportunities to experience the reality of the position.

    Becoming a committee member to pursue a presidential opportunity can provide a perspective on leadership, maintaining a budget and public speaking.

    Volunteer in a role until you are certain that it is the right opportunity.

    8. Prepare Your Career Tools

    I recommend asking a boss, colleague or mentor for career tools. If you prefer professional assistance, you can seek out resume writing assistance. Here is a list of things to consider when preparing career tools:

    • Online search: Search your name online to see what shows up. I recommend searching images that are on Facebook, Twitter, Snapchat or other sites on a personal account. The last thing you want to realize is the job search is unsuccessful because there is unprofessional content you posted online.
    • Be LinkedIn ready: Recruiters conduct a LinkedIn search to see if the work experience is the same on a resume. Remember to change the wording on LinkedIn from the resume, or it will appear there was no effort put into creating the profile.
    • Portfolio: A portfolio of work is recommended for people that work in the arts, writing, graphic design and other fields. I recommend a portfolio online and one that is available in hand when attending job interviews or networking meetups.
    • Cover letter: A good cover writer will always impress your potential employers. Here’s how to write a killer cover letter that stands out from others.

    Bottom Line

    It takes time to move towards a new career. Pay attention to the physical and mental signs to maintain your health. You deserve to work in happiness and come home stress-free. If you avoid the common mistakes people make, you will find a job and discover the role in a career field that is the best fit with your skillsets.

    Master these action steps and changing career paths will be on your terms to make the best decision for your future.

    More About Career Change

    Featured photo credit: Pexels via pexels.com

    Reference

    [1] Mental Health America: The State of Mental Health in America
    [2] MIT Global Education & Career Development: Make a Career Plan
    [3] Creately: Personal SWOT Analysis to Assess and Improve Yourself

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