How to Hire Your First Employee a Beginners Guide - pt 1
By VICKY BROWN
I know it can be confusing and frankly, overwhelming, to even think about the process of hiring an employee. What should you do, what do you need, how will you go about it. Well, in this episode I’m going to walk you through exactly what to do.to get your first employee onboard.
Let’s start with figuring out what you need. You probably hear a lot of entrepreneurs talking about getting interns, or independent contractors instead of employees. Well, it’s important that you understand the benefits, and drawbacks, for each of those categories. And what you can and can’t do from an employment law perspective.
I did a deep dive of the differences, and legal guidelines, in an earlier episode. Be sure to check it out when you’re done with this one.
So, let’s say that based on the available options, and what you need done in your company, you have decided to hire actual employees (which, by the way, is my preference). What’s the next step.
Well, you need to know why you need them, in other words, what will they be doing for you and the company. Write down the tasks you need done, which ones are critical and which ones are ‘good to have’. This will form the backbone of the job description. You should have job descriptions for every position in your company. Not only are they helpful in defining what is required, you’ll find that you’ll use them in crafting performance reviews, and address any type of work restrictions that may happen as the result of illness or an accident.
Again, I did a deep dive on Job Description in this episode. So take at look at that one too. After you understand what the job entails, be sure to look at the market and your budget to figure out how much you want to pay the new person. You are creating a range (with the low end being someone with the most limited experience you need, and the high end for someone with a huge amount of experience and skills).
And remember, while it is really important to look at what is happening in the market (what is that job listed for on the job boards, what do salary surveys like salary.com have to say); it’s just as important to look at your budget.
Now remember, you don’t necessarily need to have a year’s worth of salary socked away; but you do need at least 3 months worth. You’re bringing this person on to help you increase the business, so by month 3 they should be paying for themselves either directly, or in the time they give back to you – so you can grow the business. And, if that isn’t happening, either they are the wrong person, or you hired for the wrong job.
OK, so now you have the job description, well you can use that to write the job ad or posting. It’s important to remember that a job description and a job posting are two very different things.
A job posting is really an advertisement; it’s a marketing piece. You’re trying to entice someone to come work for you. Oh sure, it’ll have some elements of the job description in it – things like the main job duties, and some of the requirements. But a job description is an internal personnel document. It’s more detailed and specific – that’s because it’s used for more detailed and specific purposes.
So you’ve crafted the job posting; you’ve put it in the usual places (job boards like Indeed and Monster); you’ve put it on your social media channels; you’ve spread the word among your network; and done everything else you can think of to get the word out.
A quick legal note – make sure all your postings have equal opportunity employer language and don’t ask about prior salary (that’s illegal in some states). You may also have to have other notices, depending on the requirements of your state and/or city, so check that out before you post.
Here come the resumes and applications. Now you may really start feeling overwhelmed during this part of the process, but don’t. It just requires some organization. And by the way, if you have anyone in your world that can help you screen resumes, hit them up. They can at least weed out the people who are nowhere near qualified, or have no experience, or live in a different state etc.
The formal name for what you need is an Applicant Tracking System. That really just means you have a place to track notes on each applicant. It can be as fancy as a web based application, or just a excel spreadsheet. It’s up to you.
Applicant Tracking Systems have a cost, and excel spreadsheets don’t.
Applicant Tracking Systems can automate all sorts of tasks associated with screening, automated reply eMails, simplified job posting to job boards, a better user experience for applicants, easier management for you and on and on.
Excel spreadsheets can’t do all that – but again, they also don’t cost anything. So carefully evaluate what you need, and which would be best for you.
“…A general rule of thumb – only questions related to whether or not the candidate can do the job are permitted, not how.“
Now, on to the interview process. The interview starts long before someone walks in your office and you ask them where they plan to be in 5 years (BTW – don’t ever ask that question!). Interviews start with the resume. No matter if you are the first one to see the resume, or you have someone who does the initial screening – your job is the same in both cases. Compare the resume with the job description to determine three things; 1) is there a match of qualifications and experience, with what you need, 2) what additional information do you need regarding items listed on the resume, 3) what information do you need regarding items not listed on the resume.
Focus on #2 and #3 – information you need. This will form the backbone of your interview questions. Your goal is to identify and measure competencies (a fancy HR word for abilities). You are delving into competencies in order to measure the candidate’s level of expertise.
Here’s an example: the resume says “I’m customer focused.”
Well the competency you want to measure is Customer Service
Here’s a good Question Series
- Give me an example of a time you were not able to meet the client’s request.
- What made the situation challenging?
- How did you communicate the information?
- How did the client respond?
- What was the outcome?
You can use this format for each competency you identify. Make sure to require the candidate to provide details and examples. Begin your questions with descriptive words or phrases: ‘tell me about’, ‘describe’, ‘how’, ‘when’, ‘help me understand’, ‘give me an example’. Then, use follow up questions until you are satisfied that you fully understand the example that was given. I’ll put a link to some sample questions below in the description.
Once you’re fully satisfied that you have all the information you need, then you can talk about the position, the benefits and opportunities at the company.
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By the way – all applicants should fully complete an employment application. A resume is written to highlight the candidate’s significant credentials. However, a job application is a legal document that asks specific facts, and includes a statement of faith or an oath that the information is true and accurate, as well as the applicant’s signature. An application provides far more support to the company than a resume. While it may be a bit annoying, you should have every interviewed candidate complete an employment application – and yes, I even mean your senior staff.
And my Staffing Director would kill me if I didn’t mention that you should never write on a resume or application. No jots, no notes, no stick figures. Leave the resume clean. Why, well because notes made on an application or resume might be used to support an applicant’s claim of discrimination.
Don’t sweat it – just use a separate piece of paper. And keep any notes, strictly legal.
While we’re on the subject, let’s not forget the no no interview questions. Here’s a short list:
- What childcare arrangements will you make for your children?
- Have you been convicted of a crime?
- Do you own a car? (Yep, I have to explain this to clients a lot. As an employer, your interest is simply that they will arrive at the right place, at the right time – not how that will happen)
- Are you pregnant?
- How old are you?
- Have you ever filed a Workers Comp claim?
- What was your maiden name?
- Do you attend church on Sundays?
- Where were you born?
A general rule of thumb – only questions related to whether or not the candidate can do the job are permitted, not how.
And now, magic of all magic – you’ve found the perfect candidate.
Now it’s time to bring that person onboard as an employee. In next week’s episode, we delve into how to get that done.