NFIB

Hiring Your First Employees
03/ 02/ 2004

by Steve Strauss

Q: I will be hiring my first employees soon. I want to do it right and not make a mistake. Do you have any advice?

Marti, Decatur, Ga.

A: You are right to be researching this topic. Hiring employees is one of the most important things you as a small-business owner will do. Employees become your face to the community and can make or break your business.

Hiring a good employee is basically a three-step process:

1. Finding qualified candidates and getting ready for the interview: Before you can begin to find good employees, you really need to be sure that you know what you are looking for. Wanting someone who is, for example, "smart and good with people" usually is insufficient.

Instead, consider carefully the exact qualifications and traits you require: How much schooling do they need? What sort of extra training should they have had? What sort of experience should they have? Are there specific skills they need? How much responsibility will they be given? Can they handle that?

After you decide all of this, you need to incorporate these qualifications into your interview questionnaire. The questionnaire needs to inquire about the applicant's background and qualifications, ideally using mostly open-ended questions that require the applicant to explain things.

Once you have a good idea about what you really want and need in an employee, and have an application that helps you screen for these attributes, it is time to find a cadre of potential employees to interview.

A "help wanted" ad in the classifieds is a great place to start. However, consider also:

* Temporary staffing agencies. The great thing about temps is that you can give them a "test drive" before making a long-term commitment.

* Seniors: Older workers are often a good choice because they are happy for the work and are usually quite responsible.

* Colleges: Schools can be a great place to advertise if you need part-time, inexpensive, intelligent employees. Colleges and universities are also great places to find full-time employees. Many employers overlook new graduates because they lack the work experience employers are looking for. But, as any small-business owner knows, you have to start somewhere.

2. The interview: The interview process should help you figure out how well the applicant matches his or her resume and application. It is also the place to discover if you like this person, which is no small matter. As you will be working with this person every day, compatibility is almost as important as anything else.

Be sure to ask some unexpected questions, just to see how sharp they are. Discover their work history, why they are looking for work, whether they can take direction, if they have ever been fired, etc.

It is important to also know that there are things you cannot legally ask about in an interview. As discrimination in hiring because of race, sex, color, national origin, religion, marital status or disabilities is flatly illegal, any questions along these lines must be avoided as they could lead to a discrimination lawsuit if the applicant feels you used their answer to one of these sorts of questions against them. Focus instead on job-related questions.

Finally, make sure you get their references, and check up on them.

Step 3: Training and supervision: Once you have hired someone, you can help your new employee succeed by giving them proper training. Help them to know what is expected of them and how to do their job right.

Finally, if it turns out that you have an employee who isn't working out, it is vital that you document it, and the reasons. Be sure to give both verbal and written warnings, and show them in writing what they are doing wrong. That way, if you ever do have to fire someone, a "wrongful discharge" suit will be hard for him or her to prove.

Steve Strauss is a leading business expert. A lawyer, author and public speaker, Strauss has spoken around the world about entrepreneurship. The question above is one of many that Strauss receives from people around the world in response to his speeches, advice columns and books.

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