Hiring a new employee is a big decision for any business. It's important to consider all aspects of the process, from paperwork to cultural fit. Employers should start by obtaining an IRS employer identification number (EIN) and a state tax identification number if required. They should also ensure they have the necessary insurance coverage and that their hiring and employment practices comply with Equal Employment Opportunity Commission regulations.
Additionally, employers should have a system for collecting information and authorization for direct deposits, as well as for declaring taxes on the payroll. When looking for candidates, employers should look beyond qualifications and consider what a new employee could add to their company culture. They should also be aware that relying on staff recommendations can make the workplace less diverse, and studies show that racially diverse teams outperform non-diverse teams by 35 percent. The onboarding process is also important, as it sets the tone for the employee's future with the company.
Handrick noted that the true value of onboarding is what happens in the first 30 to 90 days. Employers should have a defined process for hiring and onboarding, including a checklist of what to do before and after hiring. The New Hire Notification Program requires employers to provide information on all new employees in order to locate parents who owe child support. Ultimately, employers should be clear about their needs and wants for the position when considering what's required. Starting with their immediate network is fine, especially if they expect to have a very small team by now.
By taking these steps, employers can ensure they hire the right employee for their business.