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5 Effective Ways for New Small Businesses to Prepare to Hire Employees

Getting to a point in your small business where it becomes necessary to hire extra hands is a clear sign that the company is thriving and has great opportunities for growth. The process of hiring employees is one that needs careful consideration, and active and objective decision-making. If you cannot do this by yourself, you can visit this site to find the best Professional Employer Organization (PEO) and weigh your options.

You can’t risk employing more hands when you are not prepared or hiring ones with goals contrary to those of your company. Before you start the process of hiring new talent for your new company, here are five essentials that should be in place.

1. Ensure you have an Employer Identification Number (EIN) or Business ID.

An EIN is a unique nine-digit number you get from the government after registering as an employer. It is a number you use when filing taxes for your company or business. This number serves you with the following benefits:

  • It secures your business identity and prevents identity theft.
  • It adds credibility to your company or business.
  • It makes it easier for you to open an account for your company.
  • It makes it easier when obtaining a loan.
  • It makes it less difficult for hiring employees.
  • It saves you the ache of tax penalties.

Why should you get an EIN? You need to because the benefits that you stand to enjoy are enormous. On the bright side, the whole process of getting your EIN is stress-free and cost-free.

2. Set up comprehensive, detailed, and explicit job descriptions.

Don't let your employees figure out by themselves the role that they should take. This will only portray you as being disorganized and create rough edges between you and your employee(s) and between the employees themselves.

The following should be in check when preparing job descriptions for your employees before hiring them.

  • What job or roles are in your business?
  • What position will each of your employees fill?
  • What areas of specialization exist?
  • Which responsibility should be attached to a particular position?
  • How will you describe this role in candidate interviews?


employee handbook

3. Have an employee handbook and set payroll.

Having a handbook for employees will help you put some things in place before hiring. Consider the following arrangements:

Additionally, you should set up your payroll and intended tax systems so that you can consistently pay your workers without any hitch. Also, you can decide whether any of the employees or a financial body will assist you with the prompt payment of your workers.

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4. Setup safety measures and insurance policies for your employees.

Setting up safety measures is specifically pertinent when you have complex production or industrial machines. You should perform machine inspections to ensure the environment is safe, as you would not want to rush your workers to an emergency room.

More so, plan and select good insurance policies that will get your employees covered in times of occupational hazards or retirement.

Worthy of note is that compensation and insurance policies differ by state. However, do well to find out how it works around you, and adapt those policies for the good of your business and your employees.

5. Prepare a realistic budget and a definite plan.

Before you hire workers in your company or business, decide what you can afford to pay them. This is necessary because you don't want to owe your employees or run down your business while trying to pay your workers. Know your company’s financial strength and work with it in mind.

Furthermore, plan on how many employees you will hire for the moment and how many you may need to add in the future. Doing so will restrict you from employing too many or too few employees for your business.


Once you have all of these elements in place, you are ready to start the process of hiring for your brand-new company or business. Ensure that you diversify your search for workers, as this will allow you to narrow down your search to the most qualified.



By Dea Styles, Guest Author | February 04, 2021