How to Begin Hiring Staff

Hiring staff without a plan can lead to unnecessary labor costs, decreased productivity and lack of efficiency. You can also get into legal problems asking the wrong questions during an interview or making promises you can’t keep.

Don’t hire your workers one at a time, deciding what positions you need to fill as you begin bringing people on board. Start with an organization chart to make sure you create the best organization to bring you to profitability, and work with your attorney to make sure you cover all the legal bases when hiring.

Create an Organization Chart

If you ask many CEOs if they would staff their companies the same way they currently exist if they were starting over, they’d probably say, “No!” Many companies hire workers for one job, and then shift them to another because the position wasn’t well thought-out. 

If the employee isn’t up to a task, many small businesses shift the staff member to another position because firing someone is painful.

Start with a detailed organization chart before you hire a single employee. This should be included in your business plan. Divide the chart into departments, such as operations, marketing, accounting, human resources and manufacturing. 

Identify every position’s supervisor and subordinates. This will help you make sure every function you need performed is filled, and that you don’t hire unnecessarily.

Create Job Descriptions

Write a detailed job description for each position on your organization chart. This will help you determine if you have correctly staffed your business. This will also help you avoid legal problems once you hire your workers.

Set Your Budget

Once you’ve created your organization chart, set a budget for staffing, using your overall budget to guide you. You may find that you have less money than you need to properly staff your business. 

This will require creative solutions, such as hiring contractors, using part-time workers and offering different benefits to different employees. You may need to hold off on developing certain aspects of your business until you have the revenues to adequately staff them.

Meet with an Employment Attorney

It’s important to meet with an employment attorney to make sure you meet all state and federal labor laws. Depending on the size of your company, you may need to meet the provisions set by the Equal Opportunity Employer Commission. 

Depending on what state you’re in, you’ll have different regulations regarding union activity. The attorney should review your employment application, interview questions and any other aspect of your hiring process.

Create an Employee Handbook

Before you hire employees, create an employee handbook that lays out your rules and benefits. Include information on workplace dress, attendance, harassment, fraud, pay schedules and other basic human resources topics. 

Employees should read and sign a document that states they have read the employee handbook and agree to its contents. You can develop the first draft of an employee handbook yourself, using Internet resources, then have it checked by an HR consultant. Make sure your employment attorney reviews the document and approves it.

Create a Search Strategy

Once you’re ready to start hiring, create your search strategy. You’ll need to advertise your positions, create an application form, develop interview questions and set criteria for evaluating potential hires. It may be a good idea to hire a qualified human resources consultant or firm to help you with this process.

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