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How to Hire an Employee for Your Small Business

Updated: Jun 27, 2023

Starting a business requires a lot of dedication and effort. When looking to hire employees, you will want the same qualities from your workers. But, how will you achieve it? You are likely to get a lot of requests from potential workers when posting a job offer. How will you decide which one of the candidates is better for your business? In this small guide, you will learn how to effectively hire an employee for your small business.

Identify your needs

The first and most important thing you need to do when considering candidates is to identify your needs. This sounds simple enough. But if you are looking for a marketer, you are not going to hire an engineer and vice-versa. Make sure you know exactly what your company needs to grow, not just to fill a position. As soon as you know what your company requires, you can move forward to the next step.

Put yourself in the candidates' shoes

Recruiting professionals often recommend that employers should conduct prior research on the role they are filling. You can search for job offers online, or talk to a colleague or friend who is looking for the same position you are hiring for. By researching how to hire an employee, you can compare salaries, required qualities, and necessary skills that will help your company grow. If possible, confer with other team managers about the ideal candidate, so you can get an exact point of view of what is precisely needed.

Post a job

Multiple job boards can help you with this process, like Careerbuilder, Monster, or Indeed. Some of these pages have application tracking software (ATS) to help choose the right candidate, but it's essential that you know what you are looking for in an aspirant.

Within this job post, you should add a job description. The job description must include the following:

  • Company's vision and statement

  • Description of tasks and duties the employee will be doing

  • General office location or remote work appropriate

  • Work hours and benefits

When discussing salary, some companies opt to not include the salary for a specific position. There is a trend going around that you should include the wages if you apply for an entry-level job. If it's a manager role, you should not. It comes down to preference and information sharing. However, it is always attractive for applicants to see their potential earnings when applying for a position.

Also, you must include any additional documentation you may need for the hiring process, such as a cover letter, a portfolio, or immigration status.

Review applicants

After posting the job offer, potential employees will start to apply. All of them will have a different set of skills that may or may not agree with your companies objectives. Their first form of contact is usually a resume. You will need to spend some time carefully going over these resumes to rule out candidates who are not qualified for the job.

Interview the most qualified candidates

Inform the potential candidates about a date you would like to interview them. If possible, set a day apart exclusively for interviews, so your main focus is getting the right employee. Let your applicants know of the interview a day or two ahead. They should be ready for any questions you may ask them. Therefore you can check how well prepared an interviewee is.

You can also make a checklist of the qualities and skills your small business needs, and fill it out during the interview. An interview is a perfect set-up to ask for particular questions, and ideally, form a bond with the candidate.


Now that the interview process is done, do not hesitate to contact any of the candidates again. Whether it is for a second interview or to inform them they were not selected, applicants will value any form of contact. Think of it this way, if a prospective employee gets an email with the details for a second interview, they will be more motivated and look forward to the next step of the process.

Second interviews are an effective way to rule out certain skill sets and qualities you would not like in an employee. It is crucial that you still maintain perspective and take everything into account. Even if it was just something the applicant said that made you feel insecure. The screening process is a must.

Make a job offer

Do not delay in making a decision. If you found a high-quality candidate, it's most likely that another company is also interviewing the same candidate. As soon as you have made your decision, let your applicant know via phone call or video call. After you let them know, send an email regarding a job offer. Usually, job offers include the following:

  • Welcome message

  • Salary

  • Growth opportunities

  • Benefits

  • Start Date

High-quality employees often demand higher salaries and better benefits. So, it is essential that you are flexible with your compensation package. Negotiation should always be beneficial to both the company and the employee.

Another aspect that you should consider when making a job offer is a background check. A background check can be done through online software and will help you ensure that you pick the right candidate. This step is optional but definitely recommended.

Welcome your new employee

Once the employee accepts the job offer, you must guide him through the company's processes. Below, you will find a few suggestions on how to start building a bond with your new worker.

  • Welcome Package. This welcome package should include, but is not limited to:

    • W-4 form. To know the correct amount of taxes you should withhold in every paycheck.

    • I-9 form: To verify the employment eligibility of the new hire

    • Direct deposit form. To have the employee's banking information.

    • Privacy policy. To let your employee know how the company is managing their information.

    • Provide an employee handbook. The handbook should include rules, policies, dress codes, code of conduct, etc.

    • Acknowledgment form. To verify the consent and understanding of the employee about company policies.

  • Orientation. Remote or in-person, an employee should know the companies values, statements, and objectives.

  • Job responsibilities. Most of the duties will be covered during the interview process, but reviewing them in more detail is helpful.

  • Introduce them to the team. Getting to know team members in their department will help the new hire start building relationships sooner. Trust is a key factor in a small business.

  • Assign a mentor. If possible, assign another employee to check on regularly with your new worker every now and then. When starting a new job, most people will need someone to guide them through the company's processes and policies.

  • Provide a starting project. Most new hires are eager to start their new job. Assigning a project to work on right away will boost their motivation. It will also create general questions that you or a mentor can answer.

  • Provide access. Ensure that the new employee has all the tools and login information they will require since day one.


Not every small business has an HR department that will help them through the hiring process. Sometimes companies can have 5 people working remotely, although it's probable they don't possess the recruitment skills necessary to know how to hire an employee. In this case, it is better to look for a professional worker to guide you through the procedure.

Furthermore, outsourcing the specific position you are looking for could be a better option.

Ever since the pandemic, many outsourcing and offshoring companies have thrived because of their effectiveness and low cost. When comparing outsourcing companies to hiring employees, you'll find that most professionals are also leaning to outsource their work than being employed directly with a company. It allows workers better time management and increases motivation.

Before leaning towards a certain remote candidate, you should select an applicant that can actually do what they claim. Since the candidate will not be in the same workspace, take into account the following:

  • Comfortable working from home or in a shared office

  • Have the right equipment to do their job

  • Have a suitable work environment

  • Able to keep distractions to a minimum

  • Are independent

Taking these points into account will significantly improve your chances of finding a remote employee that suits your company.

It is also worth mentioning that there are companies specifically created to search for remote workers for you. These companies take care of the screening process. They will help you work with professional candidates who already possess the tools for the type of work you are looking for. Giving you more flexibility in your schedule to take care of other vital activities, like bookkeeping and customer support.

Remote employee onboarding

Most of the onboarding process will be similar to an in-person new hire, but you need to consider a few more points.

  • Communication. Working with a remote employee requires a lot of communication. So, the proper communication channels must be set even before the company's new member starts work.

  • Remote access. All the logins and tools the new worker will need must be prepared before orientation happens.

  • Make them feel welcome. Remote employees need a welcome message when they start. A meeting with the team or a short video with a few of the other workers will help the new hire identify with the company's values. Even though they are not in the same physical location.

  • Availability. As mentioned before, communication is crucial when working with a remote worker. Your new hire will have questions and doubts that cannot be answered as quickly as they could be in an office. Make sure they feel comfortable reaching out to you and other members of the team. Also, check on your new employee regularly to track their work and any doubts that they may encounter along the way.

Remember to keep all work documents up to date and provide remote employees with an online guide that has instructions for the company's processes.

How to hire an Employee for your small Business

Focus on Results

Hiring an employee is an easy task. Hiring the right employee for your company is a challenging assignment. Remember to first identify your company's needs and be descriptive with your job post. As long as you have good engagement with your candidate, applicants will feel secure and valued. Whether you follow the steps above or outsource the screening process, employees drive the company's success; choose them wisely.


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