Introduction
Finding and employing good talent is not an easy task. In fact, reports indicate that nearly seven out of ten employers are suffering from a talent shortage and difficulties in hiring – the highest level reported by ManpowerGroup in the past fifteen years.
However, hiring employees is essential for the success of your business. Having a distinguished team of store staff can help sell more products, improve productivity, and provide better customer service.
The big questions are: how do you find the best talent? What is the best hiring process?
This guide covers how to hire employees, including best practices for retail stores.
1. Mind the Legalities
Before you start the hiring process, we recommend reading a summary of the key laws from the Department of Labor. There are over 180 federal labor laws and regulations you must comply with according to federal and state governments. Here are some tips to help you set up your business legally:
Obtain an Employer Identification Number
Before you hire anyone (and to set up payroll), you will need to obtain an Employer Identification Number (EIN) from the Internal Revenue Service. It is also known as the “Employer Tax ID Number.” You use it to report taxes and other information to state agencies and the IRS.
Apply for an EIN on the U.S. government website, and your first task will be completed!
Register with the Department of Labor
Some state and local governments require businesses to obtain identification numbers for tax purposes. Contact your local and state government official to see if you need a tax ID number.
Depending on your Department of Labor, it may be a good idea to keep the following information on hand:
– Federal employer identification number
– Business structure
– Company name
– Your North American Industry Classification System (NAICS) code
– Number of full-time and part-time employees for your business, including the owner
– Date of first employee payroll (if applicable)
– Company email address
– Principal business address
– Address you wish to send unemployment claims to
– Contact information for key individuals (which may include the owner, partners, members of the LLC, and the CEO or company officers)
Organize Your Tax Forms
You are responsible for filing taxes and reports on behalf of your team as an employer, so it’s important to be aware of the various tax deadlines for small businesses that you’ll need to meet. You will want to keep the following information about each new employee you hire:
– Full name
– Start or end date of employment
– Tax identification number (social security number or EIN)
– Date of birth
– Current address
– Compensation details
– I-9 form, to verify employment eligibility in the United States (both the employee and employer must complete this form)
– W-4 form, to determine the amount of federal income tax to withhold from the employee’s paycheck
Businesses must keep their employment tax records for at least six years to support tax return filings. Setting up a system for managing these forms helps you prepare tax returns and manage business health over time.
The IRS also has an employer tax guide, which provides guidance on all federal tax filing requirements that may apply to your small business. You should also check with your state’s tax agency for any employer-specific filing requirements.
Get Workers’ Compensation Insurance
Workers’ compensation insurance helps cover lost wages and medical expenses for your business if an employee is injured or becomes ill. This insurance can also include rehabilitation services and death benefits.
Some states require…
Most states require any company with one or more employees to have workers’ compensation insurance. It’s an easy way to protect your business and yourself from unexpected accidents and business interruptions.
Workers’ compensation insurance varies from company to company. You can get a free quote online from companies like biBERK.
Creating a Compensation Plan
To attract and retain the best talent, you’ll want to have an attractive compensation package in place.
Your compensation plan will consist of two parts: direct compensation and indirect compensation. Direct compensation refers to what you will pay the employee: whether it’s a salary, hourly wage, or commission-based.
Indirect compensation includes any additional benefits you will offer, such as health and dental insurance, disability, and retirement programs like 401k.
Some examples of indirect compensation include:
– Paid holidays
– Paid leave or vacation days
– Income protection for disability
– Flexible working hours
– Promotion opportunities
– Student loan repayment assistance programs
– Childcare expense assistance
– Career development
– Company equipment
The compensation plan is how you secure valuable employees. Take the time to develop a comprehensive program and communicate it to candidates during the interview process.
2. Decide if you need full-time or part-time employees
A full-time employee is someone who works between 30 and 40 hours a week. Part-time employees typically work less than 30 hours a week.
It’s common for small business owners to question whether they should hire full-time or part-time employees. Many business owners start with part-time employees as their business grows and they need more staff. Hiring full-time and part-time employees comes with advantages and disadvantages:
– Full-time employees. Hiring full-time employees comes with benefits such as better planning, increased productivity, and more loyal and engaged employees, but the cost of benefits and issues with overstaffing if you’re going through a quiet period can affect your profits.
– Part-time employees. You can start by hiring part-time employees to cut costs and maintain flexibility, ensuring you have additional staff only when you need them (for example, during peak business periods). However, hiring part-time employees can lead to instability and higher turnover rates, as well as having less experienced employees.
Overall, full-time employees provide schedule security and stability in workforce management. They have a consistent weekly schedule and equal hours per pay period, along with healthcare benefits and time off. Part-time employees offer flexibility in staffing levels since they do not have guaranteed hours or benefits.
3. Create a Job Description
If you want to attract qualified candidates for your job, you need to create an attractive job description that summarizes the responsibilities and qualifications for the open position.
With over 250 million jobs available on sites like Indeed, a great job description can help your job stand out. The goal is to provide enough information to keep candidates interested in your company while remaining concise and easy to understand. An effective job description helps candidates determine if they are qualified for the role.
Make sure your job description includes:
– Title. A short, specific job title that avoids confusing potential candidates – for example, for a store assistant, “Retail Store Assistant” is clearer than a clever job title that sounds like “Retail Jedi”.
– Summary. Start with a strong summary about the position you are hiring for and outline your expectations for the job.
– Company culture. An overview of your company culture, or the set of behaviors and practices that can be found in your workplace. This is an important yet often overlooked part of crafting a job description. According to a survey by Indeed, 72% of job seekers say it is very important or extremely important to see details about company culture.
–
to these questions, consider including situational or behavioral questions to assess how candidates may handle various scenarios they could face in the role.
– ما هي أكبر إنجازاتك المهنية حتى الآن؟
– هل يمكنك تقديم مثال على كيفية تصرفك تحت الضغط؟
– كيف تتعامل مع مواعيد التسليم الضيقة؟
– ماذا تفعل إذا كنت قد اختلفت مع زميل في العمل حول كيفية تنفيذ مشروع ما؟
بعد إجراء المقابلات، من المهم تقييم كل مرشح بناءً على المعايير التي وضعتها مسبقًا، ومقارنة الملاحظات مع أعضاء الفريق الآخرين إذا كان ذلك ممكنًا.
7. تقديم عرض العمل
بمجرد تحديد المرشح المناسب، حان الوقت لتقديم عرض العمل. تأكد من أن العرض يتضمن تفاصيل حول الراتب، والمزايا، وأي شروط أخرى متعلقة بالوظيفة. إذا كان لديك موظف يقوم بإدارة العروض، تأكد من أنهم على علم بذلك لضمان وجود عملية سلسة وأن جميع الأطراف على اطلاع واضح.
تذكر أن تقديم عرض العمل هو أيضًا فرصة لترك انطباع إيجابي ودعوة المرشح إلى الانضمام إلى الفريق. كن مستعدًا للإجابة على أي أسئلة قد تكون لديهم وتقديم المساعدة إذا كانوا بحاجة إلى مزيد من المعلومات.
8. إنهاء العملية والتوظيف
بعد أن يقبل المرشح العرض، تأكد من اتخاذ الخطوات اللازمة لإنهاء عملية التوظيف بنجاح. قم بإعداد الأوراق اللازمة، وتنظيم أي معلومات يحتاجها الموظف الجديد، وتحديد تاريخ بدء. من المهم أن تجعل تجربة الانضمام إلى العمل إيجابية قدر الإمكان، حيث يمكن أن تؤثر على انطباعات الموظف الجديدة واندماجه في الفريق.
في النهاية، يمكن أن تكون عملية التوظيف معقدة، ولكن باتباع هذه الخطوات، يمكنك جعلها أكثر فعالية وكفاءة. نجاحك كمدير في تعيين المرشحين المناسبين سيساهم بشكل كبير في نجاح فريقك وشركتك بشكل عام.
To the minimal verification of qualifications and experience on paper, these questions can help you better understand how the candidate thinks and how they will perform in their new role.
7. Presenting a Job Offer
After everything you and the candidate have gone through, it’s time to inform them that they got the job. The common question now is what steps should be taken to present the offer. Conduct a Background Check
Background checks are typically performed during the initial hiring process for job candidates. It’s an important step in the hiring process as it reveals any convicted criminals or misdemeanors and any reports from the Department of Homeland Security, Drug Enforcement Administration, Federal Bureau of Investigation, and the National Sex Offender Database. Past criminal convictions or legal issues of the candidate are also checked.
If the background check is done properly, it can give you peace of mind before extending a job offer. Since 53% of job applicants provide inaccurate information, it’s a good way to ensure you are hiring a solid employee. Background checks should only be conducted by a legally compliant third-party provider.
Some quick and easy background check sites that can be used include:
– First Advantage
– GoodHire
– Checkr
Gather Information About the Candidate
A common mistake made by employers is not tailoring the offer to the candidate. If you’ve followed this guide so far, you’ve gathered enough information to make the offer more relevant to the candidate.
For example, candidates may have prior commitments before starting at your company. Knowing when they can start will help you send a more attractive offer. Make an Informal Verbal Offer
Once you’ve gathered their information, test to see if the candidate is interested in the new role. Call them to find out if they are close to accepting the offer. This will help both the candidate and you clarify any details before making a formal offer.
Ask questions like:
– Do you have any questions or concerns about this role?
– Now that you know more about the job, do you think you would accept the offer?
– If you received another offer, would you consider accepting it?
If you are satisfied with their answers and feel confident that the candidate is a good fit, extend a verbal offer over the phone. Confirm the salary and provide any additional information they may need to accept your offer.
Send an Offer Letter (Via Email)
If the candidate said yes during your phone call, follow up with a formal offer via email. Draft a document that covers:
– Job Title
– Key Responsibilities
– Salary
– Expected Schedule
– Benefits
– Leave Policy
– Employment Terms
Explain the next steps the candidate should take to formally accept the offer. This helps overcome any hurdles they may face and can speed up the hiring process. Introduce yourself to answer any questions.
Unsure what to say in your email? Download a job offer template.
Check-In and Follow Up
If you haven’t heard from the candidate in the first week, you’ll want to check in and see how things are going. Follow up to see if they received the paperwork and if they need any assistance.
8. Follow the Post-Hire Checklist
Once you’ve made the offer and secured your new hire, it’s time to start organizing and completing your post-hire commitments. Most of these tasks are legally required, while others are best practices.
– Inform rejected candidates. A simple email or phone call is sufficient.
– Report your new employee to the relevant government employment agencies. This is required under the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA). You typically have 20 days to do this, but some states require reporting sooner.
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Completing the legal documents. Your new employee must complete the forms
Source: https://www.shopify.com/retail/how-to-hire-employees
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