Now that you have decided to hire a new employee, some of the questions you may need answered are as follows:
- What are the prevailing wages for that type of job in your industry?
A prevailing wage is defined as the hourly wage, usual benefits and overtime, paid to the majority of workers, laborers, and mechanics within a particular area.
One of the first questions an employee candidate is going to ask you is how much the position you are hiring for is paying. Obviously, this is a legitimate question. You will want to do your homework on this to make sure you can not only afford to pay someone the going rate for the position, but also to make it attractive enough to hire the best candidates possible.
- U.S. Bureau of Labor Statistics
- Contact U.S. Bureau of Labor Statistics Wage and Hour Division (WHD)
- How difficult it is to find someone based on the labor market?
Depending on the current state of the economy, it may be easy or difficult to find someone who has the experience and skills you need. If the economy is on an upswing, you may have to pay someone more for the position than if it were on a downswing. This is because there could be many companies hiring for similar positions and you would have to make your company stand out from the rest of the crowd. In the event the economy is on a downward trend, the roles would be reversed and you would be able to save money (allowing you to hire someone with more experience and more skills for less).
- How attractive your work environment/opportunity is?
Believe it or not, many people look at their work environment as their first choice for deciding where they want to work. After all, they will be spending a large amount of their life at work and they will usually want to become friends with their coworkers.
The best way to handle this is to create a positive work environment so that everyone at your company speak very highly of you and the culture of their fellow employees all the time. This is done in many ways, but you can ensure you are doing this right by focusing heavily on the health and well-being of all your employees. Making them happy will lead to your success... Guaranteed!
- How experienced the candidate is?
Depending on the position you are hiring for, you may need to hire someone who has a lot of experience or you may be able to hire someone with little-to-no experience. Either way, before you post a Help Wanted ad, you will have to determine the amount necessary for the position you are hiring.
Keep in mind that if you're hiring for a position filled with heavy computer use, you may want to hire someone with less experience because of two reasons -- one, someone with a lot of technological experience is going to come with a heavy price tag and two, many young people today are wizards on computers. Even if they don't know how to do the exact duties you need, they will be able to pick it up much faster than someone who has been around for a long time.
- How important that person or that position is to your company's success?
If you are looking for someone to run your office, make sales calls, or do clerical work, you may be able to find someone to fill the position very easily. You can post ads in places such as Craigslist.org or Monster.com. You can even ask your current employees for referrals or even hire a temp agency such as Kelly Temporary Services.
However, if you are looking for someone to be a key component of your company, such as a new CEO, you are going to have to dig deep into your book of connections. You are going to have to spend a lot of time researching and asking around to your network to determine whether anyone will be a good fit for you. You may even have to wine and dine the individual by taking him to dinner or a sporting event.
- How fast you need someone?
If you have to hire someone immediately because one of your key employees had an emergency arise and was unable to continue their work or if you had to fire your only sales person because they stole from you, you may be in a very bad position and need to hire someone 'yesterday.' If this type of emergency happens, your only option may be to call a temp agency. Although they can have someone at your doorstep the very next day, you will have to pay a lot more out of pocket for their service.
On the other hand, if you have all the time in the world to hire someone, you can be very picky about who you interview and therefore, hire. You can go through all the applications thoroughly. You can even call all the references and do hefty background checks if you'd like. This will allow you not only to pick an employee that meets all your requirements and standards, but also who fits within your budget.
Keep in mind that in the long run, an agency may be the best place to find someone as well as your best investment. Agencies have a very thorough hiring process and also attract very talented individuals. They may be able to find someone who can exceed all your expectations and will definitely save you loads of time from having to look for a qualified applicant.
- What your cash flow and budget can realistically handle?
Don't spend too much money on a star applicant just yet. There are many hidden costs to hiring someone and you must always pay your employees before anything else. If you don't budget yourself carefully, you may find you are out of business very quickly.
Some of the costs associated with hiring an employee besides just their wage are Social Security and Unemployment Insurance, as well as optional costs such as Health Care, Dental Care, Eye Care, 401(k), Education Reimbursement, etc. etc.
Once you get more comfortable with hiring new employees, all of this will be like second nature to you. You will continue this process time and time again. You will no longer worry about the little things and you will continue your earned success.
