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Whether you are just starting out and need to hire an employee for your new business or your business has grown and the need for help is eminent, there are several things you need to know before you jump into the hiring process. This series of articles will provide you with the information you need to meet this challenge and avoid the pitfalls.
First let’s define an employee. The IRS defines an employee as a person you hire whose work is controlled by you including both what is done and how it is done. Whether you pay this person hourly, daily or weekly or by the job are immaterial. Both part-time and full time employments are included in the definition.
An employee differs from a sub-contractor. A sub-contractor will work for more than one client, have a defined business, advertise for work, have signage, have general liability insurance and perhaps workman compensation insurance, will have a business phone, business cards, stationery and contracts. A sub-contractor will also make their own hours, determine the work to be done and will provide their own tools and materials necessary to perform the work. If none of these criteria are in play, you are hiring an employee and thus need to meet all of the reporting and legal requirements of an employer.
Now you have made your decision to become an employer, where and how do you find a quality employee? You have several options available to you. Word of mouth, advertisements, your state employment agency, private employment agencies, local colleges and schools, professional and trade associations, friends and family are all good sources. Which you use – and you might use more than one source to find your dream employee – will depend upon your community, your network of associates, your budget and of course the type of employee you are looking for.
Next we will discuss the mechanics of a good interview.