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Hiring employees can be a costly and extensive process, but the price of employee turnover can be double the cost of hiring. That’s why it's important for you, as a business owner, to take the time to find the right talent, and invest in onboarding and training. These practices may not only reduce your risks and stress but save you time and money in the future.

Step 1: Form Your Budget

It’s important to establish a budget for your hiring efforts, including employees’ payroll, payroll taxes, benefits, and onboarding.

• Consider the market when determining what pay and benefits you’ll offer to retain employees.
• Work with a Payroll Specialist to determine your business’s cost for employee retention.

Step 2: Complete Employee Background Checks

Background‑check practices must comply with applicable federal and state laws and should be applied consistently. Depending on the role and applicable requirements, experts often recommend hiring managers complete sex offender, criminal database, and Social Security verification background screenings. Costs vary by provider, scope, and jurisdiction, but doing so can protect your business, employees, and customers from potential risks.

Step 3: Create and Post a Clear Job Description

A great job post and description should be appealing to qualified candidates. Be sure that the job description:

1. Includes the responsibilities and skills needed to be successful in the role.
2. Is easy to read by using bullets versus paragraphs for job responsibilities and skills.
3. Shares your business’s values and culture with candidates considering applying for the position through a short paragraph.

Once you have your job description ready, you can save money by posting on free job boards like Indeed.com. Depending on your position needs, social media sites like Facebook can also be a free avenue to help you find the ideal candidate. LinkedIn is another great social media resource as well, but there may be costs associated.

Step 4: Prepare and Conduct Hiring Interviews

You may have questions already in mind, but don’t forget to create an interview guide as it can help you stay focused on achieving your specific goals for your business. During the interview, be sure to relay essential information about the position and ask the right questions to get a feel whether the candidate is a good fit for the position.

• Before the interview, have the candidate read the job description and sign off confirming they can perform the job responsibilities.
• During the interview, be clear about roles and responsibilities, and set expectations.
• Prepare interview questions that will tell you whether the candidate possesses the skills and behaviors needed for the position.
  • Situational questions can help you gain an understanding of how the candidate will handle certain situations.

Step 5: Set Up Payroll Services and Workers’ Compensation

Though some small business owners choose to handle payroll internally, a payroll provider can offer peace of mind when it comes to filing payroll taxes. One great reason to think about using one is that they’ll be able to help eliminate errors that can lead to large fines.

For your protection when seeking a payroll provider, ask them to provide proof of their financial stability and insurance.

A good provider will have a customer support line and an easy-to-use portal that can help you:

• Calculate payroll taxes and withhold them from employees’ paychecks
• Pay and file payroll taxes
• Deduct payments for benefits and wage garnishments
• Generate W-2s for your employees

Workers’ compensation is designed to protect your business from financial burden and requirements vary based on state law, industry, and number of employees.

Step 6: Create an Employee Handbook.

Creating an employee handbook can help protect your business and limit exposure to potential employee-related lawsuits. They contain information on your company’s mission, vision, core values, policies, dress code, employee benefits, and perks. When developing your employee handbook, make sure a lawyer reviews it to ensure it doesn’t violate employee rights.

Whereas an employee agreement (or contract) is a legally binding document between an employer and employee outlining the agreement of the employee’s employment.

Step 7: Develop a New Employee Onboarding and Training Plan

Having an onboarding process is crucial to your employees’ success. Be sure to organize proper training so they feel comfortable, confident, and equipped to perform their job to the best of their ability.

Here are a few things to make sure your business has a successful first day:

• Completed HR paperwork.
• Introduction to employees.
• Distribution of employee handbook.
• Discussion of business values and culture, expectations, and introduction to assigned mentors (if provided).
• Tour and introduction to staff.
• Designated work area created.
• Logins and access to programs created beforehand.

Disclosures: This article is for educational purposes only and should not be considered legal, tax, accounting, financial, or investment advice. Please consult qualified professionals regarding your specific situation. SCCU makes no guarantees regarding accuracy or completeness, does not endorse third‑party products or services, and assumes no liability for use of this information.