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5 Best Practices When Hiring Employees

September 29, 2012 by mrice

Tax Tips are not a substitute for legal, accounting, tax, investment or other professional advice. Always consult with your trusted accounting advisor before acting upon any Tax Tip.

Who you hire for your organization can be the most critical decision you make for the future success of your company. Hire the right team and success is almost guaranteed. Hire the wrong group and your company’s very survival can be in jeopardy. In other words, hiring is nothing to take lightly. This article will serve to provide the 5 best practices when hiring employees.

Practice 1. Define the position

Create a clear and exact description of the position you are seeking employees for. This will enable you to advertise to attract only those who are qualified for the position. Prospective employees need to know exactly what you are seeking before applying for the position. Fail to do this and you may be overwhelmed by ill qualified candidates.

Practice 2. Determine the salary range

Knowing what you are able to pay for the position can eliminate many headaches in the hiring process. If the position requires years of experience, a higher starting salary can attract qualified candidates. On the other hand, if the position is entry level, a lower starting salary can eliminate your dealing with prospective employees who need greater compensation.

Practice 3. Look inside first

Many hiring managers only look outside the organization when seeking talent. However, the best candidates are often already within the company. Hiring from within eliminates many of the hassles of training someone new into the company’s culture. Not to mention, a much lower cost than recruiting from outside. Always look inside first.

Practice 4. Advertise on many sources

If you can’t locate someone inside the company, the position should be marketed on multiple sources. This includes newspapers, websites, social media, universities and even by word of mouth with your current employees, coworkers and fellow business people.

Practice 5. Put it in writing

Once you locate the ideal candidate, put the offer in writing to avoid any misunderstandings. Verbal offers are a major no in this day and age. Be certain that the offer letter contains a complete description of the position, salary, benefits and expectations of the employee. It’s far better to have the employee turn down the job based on the offer letter than to hire and find out there was a misunderstanding about what the position entails.

TAX ADVICE DISCLAIMER: In accordance with IRS Circular 230, any tax advice included in this communication, including attachments, is not intended or written to be used, and cannot be used by you or any other person or entity, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions, nor may any such advice be used to promote, market or recommend to another party any transaction or matter addressed within this communication. If you would like such advice, please contact us.
 

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