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Hiring Your First Employee

By Jacquelyn Lynn

If starting a business is like giving birth, then hiring your first employee may well be compared to choosing your child’s first babysitter. It’s a decision that is critical to the overall health, well-being and future of your company—and it can be a traumatic experience.

It’s important to get started with the right procedures. Before reading the first resume or accepting any applications, have your hiring system in place.

While you don't need to become an expert on labor law, you do need to know enough to avoid asking illegal questions or committing other missteps that could leave you open to civil liability. At the same time, you need to be able to gather as much information as possible about the candidates you're considering in order to make the best choice—which is why you need to approach the process with a well-thought-out plan.

Some tips for developing your hiring procedures include:

Write a job description. Job descriptions don't have to be literary masterpieces, but they do need to clearly outline the duties and responsibilities of the position, and the skills required for adequate performance. For example, if a job requires knowledge of certain equipment, be specific about it in the job description. But don’t demand more than you actually require. If you need a receptionist to spend most of her time answering phones and interacting with visitors, is it necessary that she be able to type 60 words per minute? A slower speed is probably sufficient; focus instead on interpersonal skills. For your handyman, of course, you want to be sure the person you select has the “fix it” knowledge you need.

Establish a salary range and benefits package. You may even want to put this information in writing and provide it to candidates during the interview.

Have a job application form. Every prospective employee should fill out an application—even if they have submitted a detailed resume. A resume is not a signed, sworn statement acknowledging that you can fire them if they lie; the application is. This document will also help you verify their resumes; check to make sure the information is consistent on both the resume and the application.

Prepare your interview questions in advance. Ask each candidate the same set of questions, and make notes as they respond so you can make an accurate assessment and comparison later.

Develop open-ended questions that encourage the candidate to talk. In addition to knowing what they’ve done, you want to find out how they did it. Ask for descriptions, details and explanations.

Be sparing with how much information you provide up-front. If you tell the candidates everything about the job and what you want, they’ll just feed that back to you, colored with themselves.
Of course, you have an obligation to tell candidates about your company and what you’re looking for so they can decide whether or not they want to work for you.

Getting through the interview
Don’t be surprised if you’re as nervous at the prospect of interviewing potential employees as they are about being interviewed. After all, they may need a job—but the future of your company is at stake.

How many people you should interview is a judgment call you have to make based on the qualifications you require and the available labor pool in your area. Regardless of the number of candidates you consider, it’s a good idea to reserve your decision until the individual you select has been through at least two and perhaps even three interviews.

In the first interview, determine if they have the qualifications you need. During your second meeting, tell them more about your company and what you expect; this will help you find out how well they will actually perform. If you decide on a third interview, put it in a social setting, perhaps over lunch or dinner. You’ll see a different side of them than you’re likely to see in the office.
When each interview is over, let the candidate know what to expect in terms of when you’ll be making a decision and how you will let them know.

Making the Choice
Don’t hire the least expensive person because you feel you can’t afford better talent; instead, invest in someone who has the skills and abilities you need and who can help you grow your company.

Take the same approach to quality with your employees as you do with your product. If you wouldn’t provide your customers with substandard materials or services, then you shouldn’t hire someone with substandard skills. Though you may be tempted to cut financial corners with payroll, it’s a penny-wise, pound-foolish strategy. If the person who works for $20 a week less in salary makes mistakes that cost you thousands of dollars, you don’t have a bargain—you have a liability.

It's also important not to over-hire. Hire what you need, or one step up from what you need, but don’t hire today what you’re going to need in ten years, because that person is going to become discontent and leave.

As much as possible, try to give the applicant a taste of the job before either of you makes a commitment. Consider a trial period or other mutual evaluation method.

Remember that the hiring process doesn’t end with making the selection. Your new employee’s first day is critical. People are most motivated on their first day; build on that momentum by being prepared for them, by having a place set up for them to work, by making them comfortable, and by welcoming them into the company.
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