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How to Hire Employees: A Step-By-Step Guide

To hire a new employee, you need to create a standout job posting, review applicant résumés, interview top candidates, choose the perfect candidate and make an offer of employment. While hiring, you must also fulfill state, local and federal regulations and set up an efficient onboarding process.

The key to choosing high-performing employees and having low turnover is polishing the methods that you use for selecting and interviewing candidates.

What this article covers:

How Do I Find Employees to Hire?

There are many ways that employers can find great employees who add value and help in growing the business. Here are some ways that small business owners can find employees to hire:

  • Post the job on online job boards such as Indeed, Monster and Glassdoor
  • Hire a headhunter who can pre-screen candidates to free up a company’s time and focus on the best fit
  • Attend virtual job fairs
  • Use your personal network to recommend the right candidate
  • Ask current employees to refer applicants
  • Spread the word on social media channels such as LinkedIn and Facebook
  • Contact local chapters and professional organizations
  • Look at internal candidates first
  • Solicit top candidates with similar roles and titles from competitor companies
  • Reach out to vocational and trade schools

How Do You Recruit Good Employees?

To hire creative and efficient employees, you need to look beyond polished résumés, pre-screened references and scripted answers. Here is a step-by-step guide on how to attract and retain the top talent in the industry.

Register Your Business

Before hiring employees, IRS requires every business to have an Employer Identification Number (EIN). This is a unique nine-digit number that identifies you as a business entity and is used for tax ID purposes. The EIN number also allows you to hire employees. You can get an EIN by applying online. You can also submit an EIN application by mail, fax or phone.

Additionally, each state has a different registration process for getting a state employer identification number. Visit your state’s labor department website for more information.

Research Similar Roles

Before you can post the requirement on job sites, take some time out to monitor job trends in your industry and understand the skills and experiences that are required for the role. Check the most popular job titles and other keywords that job searchers are looking for.

Make a list of characteristics of an ideal employee and the job duties that your new employee will be responsible for. This will help you make

Use sites such as PayScale and Glassdoor to compare salaries and determine the right compensation for the role.

Create an Attractive Job Posting

Create a meaningful and clear job title and description that outlines your expectations and contains the keywords that your ideal candidate is searching for. Include the roles and responsibilities, required qualifications, the job location and duration.

Review Resumes

Once you start receiving applications from several candidates, you need to narrow done the search by filtering out candidates that don’t fit the job requirements and sending them a rejection mail. Then based on the candidate’s achievements, career progression, attention to detail and skills, you can narrow down your candidate pool.

Communicate with Candidates

Shortlist your best candidates and decide who should move forward in the hiring process. You can send out emails to schedule phone screens and face-to-face meetings with the applicants to learn more about their experiences and qualifications.

Interview Top Candidates

Before interviewing the candidates, you can start with a fifteen to thirty minutes phone screen to determine the candidate’s fit. Invite three to four top candidates for an in-person interview. During the interview process, ask strategic questions that reveal the candidate’s qualifications, experiences and enthusiasm for the role.

During each interview take notes, to remember the strengths and weaknesses of each candidate more clearly when it’s time to make your final hiring decision.

Check Candidate’s References

You can gain insights about the candidate and verify qualifications by checking references before hiring.

Make an Offer

While choosing the right candidate, reflect on what you’ve learned about their experiences from their resume and interviews. Consider if the employee would be a good fit with your team and is skilled enough to help you achieve your goals.

Once you’ve selected a competent and capable candidate, extend the job offer. Present the terms of the offer including start date, benefits, salary and other details. Once the candidate accepts the verbal offer, send an official written offer.

Verify Work Eligibility

All employers need to verify whether an employee is eligible to work in the United States. The U.S. Citizenship and Immigration Services (USCIS) requires all employers to complete IRS Form I-9. The last page of Form I-9 specifies what documentation new hires must present to employers to attest to their employment authorization, regardless if they’re a citizen or noncitizen.

Get Workers’ Compensation Insurance

Once you bring on a new employee, you need to get compensation insurance to protect employees from on-the-job injuries. This is a requirement for many states.

You must pay state unemployment compensation taxes. When employees lose their jobs, these payments from the state’s unemployment compensation fund provide short-term relief.

Report to Your State Directory

The new hire data should be reported by all employers to their respective state directories within 20 days after hiring an employee.

Withholding Taxes

A portion of employee income should be withheld by employers and deposited to the IRS and the state. In addition, employers also need to make tax payments for Social Security and Medicare to the IRS.

Employers must also have new employees fill out IRS Form W-4, Withholding Allowance Certificate. On the W-4 form, employees tell you how many allowances they are claiming for tax purposes so that you can withhold the correct amount of tax from their paychecks.

How Do You Attract New Employees?

Candidates are drawn to companies that have a great employee culture. To make sure that you’re an enticing to the top candidates, you need to convey your business values and focus. Approach the candidates that you believe would be the right fit instead of waiting around for applications.

Demonstrate your culture and values on your website and social media pages. This shows prospective employees, that the other employees are happy in the organization and are proud to be there.

One of the best ways to attract top talent is by offering an attractive compensation and benefits such as health care centers, free child care and large bonuses. Also, explain potential opportunities and how you foresee an employee climbing the ladder.

Your employees are your most valuable asset. This is why throughout the hiring process, you need to treat the candidates with respect and be transparent in your hiring process. This will ensure that you not only hire the right people but also retain them longer.


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