Thursday July 3, 2008
Updated on July 6, 2007.
SO YOU'VE FINALLY GOT YOUR small business up and running. You're landing clients. You've made the big move from the garage to an office space. You've got customers clamoring for more.
Success may be felt in various ways, but one symptom is almost always prevalent: The work load is overwhelming. Suddenly, you're spending hours doing tasks that could easily be handed off to someone else — that is, if you had someone else. In other words, you're ready to start hiring employees.
Fact is, once a business takes off, owners who continue to sweat the small stuff rather than devoting themselves to the "core elements" of their companies will lose sight of the big picture and ultimately drive their businesses into the ground, warns Shawn Smith, president of Harrison, N.Y.-based Next Level Consulting and co-author of "The HR Answer Book."
Hiring an employee not only will reduce your workload — it may also breathe new life into your business. But there's a lot of preparation work involved before someone can start calling you "boss." Here are a few tips:
Start by making a list of the specific tasks a potential employee would do and how long each is likely to take. If it doesn't add up to more than 20 hours of work per week, you might consider hiring a part-time employee, a freelancer, or an intern.
If, for example, you only need 10 hours of marketing help each week, hiring a freelancer or an intern on an hourly basis saves you some of headaches involved with hiring a full-time employee, which includes paying Social Security taxes and calculating paycheck deductions. (More on that below.)
But regardless of whether you're looking for full- or part-time help, always be honest about the job description, says Smith. If the job is 90% secretarial and 10% creative, say so upfront. It will save you — and the new employee — a lot of trouble in the end.
Unless you're a fast-growing, high-profile small company, you probably won't have much luck attracting your first employees through big national job boards like Monster.com, says Smith. After all, most job seekers are only willing to move for a position they know provides lots of security.
Instead, try networking with other business owners in your area. Where did they go for, say, good but cheap Web design, advertising, or secretarial help? You might also try posting your job opening on smaller, niche Web sites that will appeal to people trying to break into your industry.
Another option is to partner up with local colleges and universities, which often stage job fairs in the spring. Is there a local business school in your area? Post a job description on the school's electronic or physical bulletin boards. You may find a business student with specialized skills who's willing to work for a low wage or class credit.
If you can't offer a high salary — and most small companies can't — try to emphasize the job's other benefits. In a small company, employees usually have more responsibility than in large ones. Be sure to highlight your company's best attributes — a fast-paced or casual environment, generous vacation policies, a family culture — as well as the chances a new employee might have at mentorship and hands-on learning experiences.
Once you find a candidate you're interested in, check him or her out thoroughly.
"It's amazing how people can falsify their credentials and present themselves as something they're not," says attorney Anne Covey, of Covey & Associates in Lambertville, N.J. At the very least, be sure to confirm the time periods an individual worked with former employers, and check the degrees earned with the appropriate universities.
If you don't have time for a long conversation with former employers, at least ask them if they'd rehire the person or not, she says. To be very safe, and especially if your potential employee will be handling money, you also should do a credit check and a criminal background check. (Just be aware that you need to let the job candidate know in advance that you are doing so.)
A common mistake entrepreneurs make is to hire people because they know them or because their friends know them, says Rebecca Mazin, co-author of the "HR Answer Book" and principal of Larchmont, N.Y.-based human resources consulting firm Recruit Right. "My favorite reference is, 'He's a nice guy,'" she says. Sure, niceness usually counts for something. But chances are you're looking for additional qualities beyond that — such as a good work ethic, solid skills and, say, leadership abilities.