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How to hire employees for a startup

Although your startup might not require a team at first, it鈥檚 something to keep in the back of your mind. If you want to grow, you鈥檒l likely need to be prepared to hire employees in the future. Here are some requirements and tips.

Knowing how to hire employees for the first time

You might already be familiar with how to hire employees when you worked for someone else. But there are some nuances to keep in mind when you鈥檙e hiring for your startup business.

Of course, when you are first starting, you鈥檒l most likely fill these roles yourself as the business owner. As your business grows, you may need to expand so that everything continues to run smoothly.

Depending on your business structure and business model, you may need to fill a variety of positions. A basic team may include:

  • Chief executive officer (CEO) and/or chief operations officer (COO)
  • Human resources professional
  • Product manager
  • Chief technology officer (CTO)
  • Chief marketing officer (CMO)
  • Sales manager
  • Accountant
  • Customer service representative (CSR)

Meet state and federal regulations

Before you place that first employment ad, you鈥檝e got some requirements from the state and federal government that help you know how to hire employees.

Obtain an employer identification number (EIN)

EINs are essentially tax IDs for business entities. Your EIN will allow you to open a business bank account, hire employees, file federal taxes, apply for federal grants and more.

An EIN is necessary for any business formation, except sole proprietorships. But while sole proprietorships don鈥檛 technically require an EIN, they may benefit from one to perform the aforementioned business practices. The聽聽via its website. You just have to:聽

  • Apply for only one EIN per day
  • Have a valid Social Security number or taxpayer ID
  • Be in the United States聽

After an EIN is assigned to you, keep it where you can access it. This will allow you to easily enter it during other applications for grants and business banking accounts.

Follow EEOC guidelines on how to hire employees

When it鈥檚 time to hire, you鈥檒l need to follow state and federal laws. You can find these on your state鈥檚 department of employment website and on the聽聽site. It鈥檚 important to be aware of which practices you are prohibited from as an employer. Generally, employees are protected from unfair workplace discrimination based on:

  • Sex
  • Gender
  • Sexual orientation
  • Pregnancy
  • Age
  • Race
  • Color
  • National origin
  • Religion
  • Disability
  • Genetic information

This list is updated accordingly with societal changes, so check back frequently. To be safe, avoid any language in job postings, interviews, onboarding and day-to-day operations that excludes members of groups.

Create a compelling job listing

Knowing how to hire employees starts with how you advertise the job openings. When creating your first job listing, it may be tempting to use buzzwords to sound on trend. However, it鈥檚 much better to avoid buzzwords 鈥 such as 鈥済uru鈥 or 鈥渘inja鈥 鈥 and hone in on the purpose of the role. Search for terms used frequently to describe the role you are looking to fill. Think about how a job seeker with the qualifications you are looking for would search for a job.聽

Be honest about the role's expectations

Especially as a startup, it鈥檚 important to be clear about the responsibilities a new hire will take on. Explain that your company is new on the scene but ready to take off. This won鈥檛 give them false expectations about pay, benefits or longevity.

You can balance this possible lack of security by highlighting the unique benefits your company might offer, such as:

  • Flexible work hours
  • Breakroom games and snacks
  • A forward-thinking culture

Professionals who are interested in joining a startup may be entrepreneurial themselves. Identify the qualities that would work well in a slightly unstable environment with room to grow. Make those clear when outlining the qualifications preferred for the role. Remember that a fit with the company culture is just as important 鈥 if not more so 鈥 than education and experience.

Perform a reference check

When vetting possible new hires, use an accredited background-check service. The potential employee will have to fill out the information, including references. Companies tend to skip cross-checking candidate claims with previous employers, but this can be a make-or-break tactic.

Everyone wants to put their best foot forward when applying for a new role, but it鈥檚 imperative to make sure the candidate is honest and trustworthy to move forward with confidence. Especially when starting a new company and hiring a team, you don鈥檛 want to take chances.

Learn how to hire employees and more for your startup

How to hire employees is just one of the things you鈥檒l study in an entrepreneurship program. 七色视频 offers a certificate program for entrepreneurs as a stand-alone or along with a business degree:

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ABOUT THE AUTHOR

A graduate of Johns Hopkins University and its Writing Seminars program and winner of the Stephen A. Dixon Literary Prize, Michael Feder brings an eye for detail and a passion for research to every article he writes. His academic and professional background includes experience in marketing, content development, script writing and SEO. Today, he works as a multimedia specialist at 七色视频 where he covers a variety of topics ranging from healthcare to IT.

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