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How to Hire New Employees

There are multiple phases and requirements when hiring employees for your business. Learn about requirements for hiring and how to hire employees with Paychex.
employer hiring a new employee

Knowing how to effectively hire employees may be among a business's strongest assets. As the economy slowly emerges after the challenges of the last year, hiring qualified employees will be a top priority for many. That's why it's vital for employers to equip themselves with the skills and knowledge needed to bring new employees on board.

Steps to Hiring an Employee: A Guide to Hiring Employees

When hiring an employee the importance of preparation can't be overstated. For the vast majority of cases, there are essentially four phases of the hiring process for which preparation is key:

  • Evaluating the needs of the business - developing job descriptions
  • Recruiting
  • Interviewing
  • Onboarding

Knowing the steps to hiring an employee can help reduce unnecessary expenditures of resources or the possibility of duplicating efforts  within the business.

Here are some key steps to follow when hiring new employees.

Evaluate the Needs of the Business

It is challenging to focus on hiring employees if you are unclear about the needs of the business or the position itself. Employers should identify where there are gaps and needs for an employee.

A job analysis can help identify the skills, knowledge, education, abilities, and experience a prospective candidate should have to perform a specific job. Your challenge is to determine the level of work experience needed, as well as the appropriate levels of education, training, and/or need for certification. One tip: When possible, assess the knowledge, skills, and abilities of individuals who have successfully performed this job in the past and consider those criteria in the job analysis.

Craft Meaningful Job Descriptions

Attracting qualified candidates often hinges on a carefully crafted job description. To identify the details that will shape your job description, answer questions such as:

  • What specific duties and essential functions will the role entail?
  • What skillset, education, or experience will the person need to succeed in the role and add value to your business?
  • Where will the person work, and during what hours? Will they be remote?
  • What tools, software, or technology resources will the employee be provided to do the job?
  • Is travel required?
  • Is there the opportunity to advance?
  • What will the total compensation package be?

Also pay close attention to:

  • Job title. Be sure the job title is consistent with similar positions in the marketplace. The job title should not reference or imply discrimination based on any protected characteristic (e.g. gender or age).
  • Key responsibilities, skills, and qualifications. A concise, but appropriately detailed listing of essential and secondary functions gives candidates a better idea of what the position entails.
  • Formatting. Stay away from long, rambling sentences, and make the wording easy to skim and comprehend. Use bullet points and present-tense verbs.

In general, the more detailed your job description, the better you can maintain parameters around the types of skills or experiences you'll consider as a minimum requirement, so you can quickly weed out applicants who lack the necessary skills. The more detailed you are in your description, the more likely it may be that you will attract applicants who are qualified, eager, and excited to help your business succeed.

Employee Recruitment

Finding Qualified Candidates

You know precisely what the job entails, but where do you find qualified candidates to fill the position? The best hiring solutions include a comprehensive strategy to attract the right job seekers from a variety of sources, including but not limited to:

  • Employee referrals. Who do your current employees know that might fit the bill?
  • Online job postings. Make use of the most popular online employment sites to advertise the position.
  • Word of mouth. Turn to your professional network, asking friends and colleagues to suggest qualified candidates.
  • Advertising on your company website. Consider drafting a compelling statement on your "Join Our Team" page, "selling" prospective employees on your company's vision, mission, and values. Let job seekers know what sets your business apart from others, and why it's such an attractive place to work. And make it as easy as possible for interested candidates to submit their application.

Following some or all of these steps can make a huge difference in terms of the time and resources you expend in search of a great job candidate.

Invest in Inbound Recruiting

Consider inbound recruiting — an online strategy that can position businesses to attract the most qualified candidates. Tactics include:

  • Cultivating a social media presence. This includes posting fresh, relevant content on a regular basis to capture job seekers' attention. This can be a great way to build relationships with people you ultimately want to hire.
  • Optimizing your website. Google now ranks websites based in part on their optimization for mobile viewing, one of many reasons to ensure that your site loads quickly and easily for on-the-go job candidates.
  • Making your careers page an exciting place to visit. Getting a job seeker to visit your careers page is just the first step. Once there, it's imperative that the prospective candidate finds an up-to-date compilation of job listings and useful information on how to apply. You may also want to consider including a direct link to a live HR staff member to empower applicants to take action and stay connected.

The more you can spread the word about job openings, the greater the likelihood that you'll attract the type of skilled, qualified job candidates you want.

Use an Applicant Tracking System

If you've successfully leveraged the hiring solutions mentioned above, you should receive a significant number of job applications. How can you keep track of them and, more importantly, identify the most promising candidates?

Technology has transformed the recruiting process. Applicant tracking systems comprised of computer algorithms can now parse large amounts of job applicant data at a far greater speed than humans can to detect patterns of behavior, candidate qualifications, and even keywords that can add visibility to job postings. They can also help gather insights into metrics around open positions, number of days it took to fill the position, and the number of applications received, interviews conducted, and jobs offered, allowing your company to streamline and optimize each step of the hiring process.

By having a paperless recruiting and applicant tracking system, your business can save time and potentially reduce costs by making it easier for HR managers and others involved in the hiring process to analyze the information they receive from job seekers — and ultimately identify candidates worth pursuing more efficiently.

Have an Interview Strategy

After you identify candidates for the position, having a well-planned interview process can help reveal a great deal about them. When developing your interview process, consider the following steps:

  • An initial submission. This could be a simple cover letter or a list of answers to several specified questions. This requirement will help weed out candidates who are looking to submit the same resume to as many open positions as possible, and will help identify those who are willing to put in effort for the right job.
  • A comprehensive interview. This interview should include a mixture of questions designed to assess the candidate's skills, as well as gauge a potential fit within the company's culture.
  • A follow-up task. For the most qualified candidates, consider asking them to complete a follow-up task or for a work sample that is consistent with the requirements of the job before you make your final hiring decisions. You can get creative with this step! This task could be a project or written assessment related to the job tasks, a meet-and-greet with your current customers, or a job-shadowing experience. An interactive task may give you a well-rounded picture of each candidate's abilities or provide additional insight on which to base your selection.

While you may hope to find your perfect candidate and get them working quickly, rushing the interview process can result in a poor match for your company, a candidate who doesn't fully understand the demands of the job, or lost time and wages in having to replace an under-qualified worker.

Conduct Background and Reference Checks

When you're down to your top candidate who may seem perfectly suited for an open position, take the time to conduct a thorough background check after making a contingent offer. This may include verifying certain information the candidate has stated on their resume, such as educational credentials and prior work experience. It's also recommended that you contact any references the candidate has provided.

The cost of unsuccessful hires can be staggering, both in terms of money lost and a demoralizing effect on the workplace. Avoid typical hiring mistakes — such as overlooking the potential of internal candidates or skipping background checks — by working closely with your HR team.

Paperwork for Hiring an Employee

The most successful hiring strategy emphasizes the value of a comprehensive employee onboarding process. The sooner you help the new hire become engaged with your organization, the more you increase the chance that they will stay with your business for years to come. Follow these crucial onboarding steps:

Have your onboarding paperwork ready

When your first employee is hired, you want to do everything in your power to make the individual feel at home with your business. Effective employee onboarding is the single most important element in getting the new hire oriented and comfortable, and helping to ensure that the new hire stays with your company for the foreseeable future.

New employee onboarding paperwork includes:

  • Form I-9 - Employment Eligibility Verification:  This establishes the employee's eligibility to work in the U.S. To make sure you use the most current Form I-9, visit the USCIS website..
  • Form W-4:  – Employee's Withholding Certificate. This outlines the amount of taxes to be withheld from wages. Find the most recent version of this form on the IRS website.
  • State tax withholding forms. These may also need to be completed, depending on the state. Check your state government website to find the correct versions of tax forms.

An important note in the case of forms and documents: some states may have their own new-hire requirements including but not limited to, paid sick leave notifications, wage-theft prevention and unemployment notices, sexual harassment and workers' compensation pamphlets.

Additional Considerations when Hiring Employees

It's particularly important to review your policies with your HR team or legal counsel — including sick leave and paid time off — prior to bringing back or hiring new employees to be sure they're in compliance with federal, state, and local laws and regulations.

If you've applied for or received a loan under the Paycheck Protection Program, check with your legal counsel or HR professional to evaluate how any new hires or staffing changes that you make may impact your loan forgiveness.

When in Doubt, Overcommunicate

Don't forget that communication is key — especially now.

In the coming days, many companies will likely rely upon flexible work schedules and remote work arrangements as they get back to business. With schedules in flux and new employment-related policies being put in place, clearly communicating changes to new (and rehired) employees will be crucial to your return-to-work strategy.

Additionally, make sure you are communicating any new workplace safety protocols — such as cleaning practices or social distancing measures — to help ease any potential employee concerns about coming into the workplace.

It may also be necessary to explain new hires to current staff during this time. Why are you hiring for new positions, for example, when other previously held positions remain unfilled? Proactively telling your staff about emerging business needs and roles can help make them more supportive of your hiring decisions.

For more information on reopening your business — including best practices, answers to common return-to-work questions, and solutions for hiring and bringing back employees — visit our new resource page, Return to Work: Getting Back to Business.

How Hiring Services Can Help

Looking for additional guidance on how to improve your hiring process? There are hiring services that can provide reliable, actionable advice to help you recruit the best candidates for your role, uncover important information about potential employees, and efficiently welcome new hires in a way that makes an impact. Paychex hiring services also gives you access to dedicated HR professionals who can also support you with job description development, interviewing best practices, and more.

Looking for even more HR support?  A PEO solution can be a complete HR outsourcing solution, offering an even greater range of services, from recruiting to retirement planning — including group health insurance, 401(k), and liability insurance.

We can help you tackle business challenges like these Contact us today

* This content is for educational purposes only, is not intended to provide specific legal advice, and should not be used as a substitute for the legal advice of a qualified attorney or other professional. The information may not reflect the most current legal developments, may be changed without notice and is not guaranteed to be complete, correct, or up-to-date.

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