Staffing Your Startup: 3 Steps You Can't Miss / HR Solutions / Last Modified: February 22, 2017

Now is the time to start hiring employees to help you increase your revenue and grow your business into a sustainable, successful...

The time has come. You have started your own business, established a revenue stream, and forged for yourself a place within your industry. Now is the time to start hiring employees to help you increase your revenue and grow your business into a sustainable, successful company.

Hiring employees takes a lot of effort, but adding them to your business can bring on numerous benefits.

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Step 1: Be Specific When Seeking Candidates

Before you can hire your first employee, you need to solicit job candidates. Write a clear, detailed description of the position you are hiring for, the work involved, and the requirements.

To get an idea of what kind of candidate to look for, examine other businesses in your industry to determine what kind of people they're hiring -- what are their qualifications and experience?

  • Your best bet is to hire someone who is familiar with your job sector. Tap into your industry network and post your job ad on industry-specific job boards.
  • Working for a new business takes passion, stamina, and large amounts of hard work. Replacing an employee after just a few months can cost you more than three times their annual salary (The Wynhurst Group). Look for a candidate who has enthusiasm for your business, the potential for growth within the company, and is invested in seeing your business succeed.

Step 2: Can They Handle Private Information?

When you hire your first wave of new employees, you need to be extra careful. More than any other group of employees, these people will have enormous access to the inner workings of your company, your company's proprietary information, and your customers.

To protect your new business and your clients, it is essential that you hire people who are capable, credible, and trustworthy.

  • Perform a background check or pre-employment screening on your job candidates. This screening ensures that your new employees are free of a criminal history or other potential issues. It can also confirm whether the information stated on their job application or resume is correct. According to a 2011 study by the CPA Journal, 44% of job applicants lied about their work experience. Don't hire someone who is willing to lie about their qualifications in order to get a job.

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Step 3: Know the Employment Laws and Regulations

There are a number of laws and regulations that dictate how employers manage and account for their employees. Once you start paying someone other than yourself, you must be in compliance with these laws.

Consult with a lawyer to make sure that your employment contract or terms are in the clear. You should also consult with an accountant regarding your tax and benefit obligations.

  • When it comes to paying taxes and payroll, HR software can be an alternative to hiring an accountant or HR professional. Most software automatically updates with the newest regulations and tax tables to keep you in compliance.
  • You are responsible for ensuring that your employee taxes and benefits are correct, whether you outsource these functions, calculate them manually, or automate them with HR software.

When it comes time to hire your first employees, look for people experienced in your industry and take care to vet them appropriately. If you don't have the time or resources to source and vet a new hire, you can use a temporary staffing agency to find employees.

By hiring through a temp agency, you can make it easier to transition your business from a one-person operation to one with employees. The agency also eases your burden by taking responsibility for taxes and required benefits until such a time that you are ready to take over with permanent staff.

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