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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 September 18, 2019

11 Hard Skills That Will Land You More Career Opportunities

11 Hard Skills That Will Land You More Career Opportunities

Are you looking to move up the career ladder? Or maybe you’re tired of having a “job” and want to start looking for a more permanent career?

Whatever your motivation, you are going to have to learn some new and different hard skills to broaden your opportunities. After all, there’s a very famous quote that says:

“The definition of insanity is doing the same thing over and over again, but expecting different results.” – Albert Einstein

While the insanity part doesn’t really fit here, the overall message is a good one. If you are looking for a different result (career advancement, more money or even a career instead of a job), it’s up to you to make it happen. This is both the good news and bad news!

The good news is that because it’s up to you, you have complete control over it happening. The bad news is that change is hard. Humans are creatures of habit, that’s why we develop routines, and anything that disrupts that routine causes us anxiety. And we will do almost anything to get rid of that anxiety. The overweight person will calm their anxiety by eating that doughnut, the smoker will light up a cigarette to avoid anxiety.

What we want to do with this article is to give you the hard skills you’ll need to reduce that anxiety so you can move up that corporate ladder, make more money or have career instead of just a “job.”

The following hard skills are essential to learn if you want to advance your career. They may not be easy to take up, but definitely worth your effort of learning:

1. Cloud Computing

“Simply put, cloud computing is the delivery of computing services—servers, storage, databases, networking, software, analytics, intelligence and more—over the Internet “the cloud” to offer faster innovation, flexible resources, and economies of scale. You typically pay only for cloud services you use, helping lower your operating costs, run your infrastructure more efficiently, and scale as your business needs change.” Microsoft[1]

There are many different jobs available in the cloud computing world today. They range from architects and developers to data scientists, security pros. Each job is its own specialty and requires a high level of specification for advancement.

This is definitely a hard skill that requires education. But if the tech world and computers are your thing you can make cloud computing a lucrative career.

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2. Data Mining and Statistical Analysis

Again, these are highly specialized fields. Data mining is defined as using large sets of data to look for anomalies and other patterns that can be used to predict future behavior.

Amazon is probably the best known company to use data mining. Have you ever noticed that when you buy something at Amazon, you’ll see a little ad at the bottom that says “customers who bought this also bought…”and it lists 2-3 other items? All of that information comes from data mining, by examining the millions of sales amazon makes they can predict that if you buy item #1 there is a high likelihood that you will buy one of the other items too. T

his not only increases sales for Amazon, but it also serves as a reminder for you that you may need these additional items for your project. This is very valuable information and has a wide range of uses. Although it has a bad reputation and evil sounding name, it is a very useful tool for maximizing productivity and sales.

3. Data Management

All companies today deal with a ton of data! Being able to manage that data in an efficient manor is not only highly prized, but a necessity.

We all have these things on our desks called computers. Unless there is a need for a paper copy, almost all of our data is computerized. Meaning that, in theory it is all at our fingertips. Being able to organize that data so that it’s easily and quickly retrievable is why computers are replacing filing cabinets!

However, just like the old fashion filing cabinet, data management on a computer is only good if it’s well organized. You want to make sure that you are keeping your data well organized so that it’s easy to find when needed. This is a skill that comes easily to some people (are you a person that makes lists? Good!) but with others it will be a skill that needs to be practices. Make sure that this is a discipline you master.

4. Scheduling

Being able to make and keep to a schedule is a very useful tool in both business and life. Effective scheduling means that you can prioritize projects, understand the tools needed to get the job done on time and that you are organized enough to lead people.

An important point here is to write things down! Whether it’s in an old fashion daily or weekly organizer or in a PDA. Have a copy of your schedule available at your fingertips at all times.

5. Financial Skills

These are especially important when looking for that promotion. The higher up the ladder you go, the more you’ll have to deal with things like accounting, budgeting, financial planning and cash flow management.

While you may not need to be an expert at all of these, you should have a good grasp of all of them. This is where taking a few night classes at your local community college is a good idea. You don’t need to become an expert, but brushing up on these skills will help you tremendously.

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6. Research Skills

These are important in all aspects of life, but especially in your work-life.

Are you looking for that first job out of school? Nothing impresses a boss or hiring manager more than someone who has researched the company. Trust me, they deal with people walking in off the street everyday looking for a job, but managers and owners need to see the value in hiring (or promoting) you.

So do your research and have some company specific questions ready to ask. Show that you are interested in working for that company or that position and not just “a” job or the “promotion” because you have seniority or need the money.

If it’s a promotion that you are after, never bad mouth the previous occupant. Instead pick out an example that he/she was good at and explain how you would like to use or expand that policy and how it would enhance the policy changes you’d like to make.

If it’s a new job you’re going for, then make sure to have some company specific questions ready to show that you have done your homework for the new position.

7. Marketing Skills

While marketing a companies products or services has always been a highly sought after skill. In today’s world, it can take on several different forms.

Some of the marketing skills that are highly sought after today include, SEO, Search Engine Optimization, SEM, Search Engine Marketing and marketing campaign management. Familiarity with Google Analytics as well as Word Press are also valuable.

While traditional marketing and branding were focused on advertising and selling. Almost all marketing efforts now a days are focused on the internet.

8. Network Security Specialist

Again, this is a highly skilled position that requires specialized training. But the amount of data that all companies store is significant, and if that data is leaked or stolen, it can costs them millions of dollars in both lost revenue and lawsuits.

So, if you have an interest in network security you will find the field both lucrative and stable.

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9. Communication Skills

At first glance, communication skills may not look like it fits into the category of “Hard Skills” that can help you succeed. But in this ever shrinking world where companies can do business from almost anywhere, communication is more and more important.

Are you bilingual? It really doesn’t matter what language you speak, there’s a company out there looking for someone who speaks that language.

10. Computer Programming

I don’t know about you, but I’m pretty sure that computers are going to be around for a while! As both the hardware and software get more advanced, the need for computer programming is only going to increase.

11. Graphic Design

As of 2018, there were 4.37 million new websites launched.[2] A good number of them will fail because they just aren’t interesting enough visually. The use of templates and replicated websites is only making the problem worse.

Part of the way Google ranks sites is through originality, this almost ensures that replicated sites will never get ranked through Google. So the more original your site is, the more likely people will visit and actually spend time there.

That is what a good graphic designer does. Takes your basic idea and turns it into a website that people actually want to visit.

Embrace the Anxiety That Comes with Change

You know it’s going to be there, you know that you’ll want to give up as you’re learning these new skills but, you’ll also know that the end result is worth the journey.

Here’s a little trick when you’re feeling overwhelmed:

Have you ever met an ex-smoker who was sorry they quit? An ex-drinker or drug user that said life was much better before they quit? These people have gone through some of the most difficult challenges humans can go through including weeks, if not, months of intense physical withdrawal symptoms. They did it because they knew that the pain and anxiety they would experience would ultimately get them to a much better life.

Now what was that complaint you had about attending night-school?

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This is the part everyone hates, everyone thinks night-school, adult education and just generally giving up family and/or spare time. While those are certainly possible ways to develop the necessary skills, they aren’t the only way.

You’ll want to check with your human resources department because depending on the company, a certain degree maybe required in order to even be considered for a position. In those cases, night-school, on-line or some other form of adult education maybe your best route.

But as long as a degree isn’t required, then your options are wide open.

Let’s just say that you’re a sales person interested in becoming the sales manager but, the territory you’ve been given will never produce the sales figures that would make you stand out as a good candidate for sales manager. So how about you start your own side business (don’t compete with your company), but let’s say you enjoy golf.

In this day and age, there are plenty of places that will teach you how to sell products on-line and even set you up with your own website. So you start a site selling golf equipment and accessories (don’t worry, you won’t even have to carry inventory or worry about shipping).

Now, when that sales manager spot opens up, you can explain that even though other salespeople had better numbers than you, it had nothing to do with your sales ability, it was more of a consequence of the territory your were given.

And to prove it, you brought in some information about a side business, you started showing that you’re on target for a sales growth rate of 30% this year. And because you had to do all of the marketing for the business, you came up with some marketing strategies that you can bring to the new job (built-in experience).

The Bottom Line

We’ve put together these 11 hard skills as a way to give yourself a “leg up” on the competition. We’ve tried to make this a mixture of both skills that require a great deal of training, and also ones that you can work on and develop by yourself.

We know that not everyone is cut out to be a cloud computing expert, but we also know that working on and having good scheduling skills will make you a much more desirable candidate for the position!

We also don’t want you to discount the idea of a “side hustle“. Especially for people new to the workforce, having a business that you have started and run successfully shows potential employers that you have initiative, scheduling skills and ambition which can put you well ahead of your competition!

As usual, we hope you found this article both enjoyable and informative. If you did, may we ask that you share it with your family and friends through social media. It really does help us and is greatly appreciated!

More Skill to Help Advance Your Career

Featured photo credit: Kyle Sterk via unsplash.com

Reference

[1] Microsoft Azure: Cloud Computing
[2] Netcraft: December 2018 Web Server Survey

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