How to Hire Employees: Step-by-Step Guide to Hiring Employees

Whether you're staffing a startup, expanding your small business, or handling human resources in an established corporation, it takes skill to find the right candidates at the right time. If you think it may be time to add team members for a new role, use the following touchpoints to help guide a hiring decision.

1. 1. Weigh your company's needs in terms of its existing human resources. Make a list of all the initiatives that your company cannot adequately address with the current staff on hand. As you assess all of the company's needs, ask whether the work will require one new employee, multiple new employees, or temporary workers who join your team for a few weeks or months at a time.
2. 2. Write a rough job description. Once you have a sense of how many new employees you need to accomplish a specific goal, write a rough summary of the job they would be doing. Present this first draft of a job description to your hiring managers and get feedback from the rest of the relevant teams if necessary.
3. 3. Describe your ideal candidates. In an internal memo, describe the best candidates for the new role you plan to create. This may not be the exact employee description that gets posted on job boards, but it will give you and your colleagues an anchor point as you navigate the recruitment and interview process.

Use this template to effectively broadcast your opening to job candidates.

1. 1. Job title: Tell job seekers the name of the position they'd be taking. Select a job title that accurately represents the scope of the work.
2. 2. Job description: Job candidates will want to have a clear sense of their duties in a role, should they be hired. Provide an assessment of what new hires can expect, and emphasize experiences rather than just deliverables. Explain why this job will be fulfilling from the hire’s very first day on the job.
3. 3. Job requirements: Job seekers understand they will need certain skills, experiences, and referrals to receive a job offer. Your task is to list these requirements without sounding intimidating. Consider which skills you really need for a good candidate to be successful and which they can learn on the job if need be.
4. 4. Compensation and employee benefits: You do not need to list the exact salary your open position pays, but you should provide as much detail as possible. The better your compensation package, the more job applicants you'll attract.
5. 5. Legal requirements: Your state's labor department may require you to post clear language that foreswears any form of discrimination on the basis of gender, race, age, religion, sexual preference, or nationality. Consult state and local resources to ensure your hiring process adheres to the relevant labor laws.

Use these criteria for extending interview offers.

1. 1. Have you made an effort to eliminate cultural biases? Cultural biases in the hiring process may lead to less racial or cultural diversity in the workplace. Hiring managers can help eliminate cultural biases in a number of ways, including hiding names or pictures from resumes (making them anonymous) and using diverse interview panels.
2. 2. Do they meet your stated requirements? Review the resume they submitted, and if the job applicant covered all the prerequisites you listed in your job posting.
3. 3. Do they show attention to detail? Check whether the job candidate's application packet is thorough and complete and does not contain any spelling errors or other indicators of inattention to detail. Only interview candidates who seem serious about your open position.
4. 4. Is their resume accurate? Take a few minutes to cross-reference a job applicant's resume online. Try to find evidence of them working at the companies they have listed on their resume. Take note that not all past employment will show up, but see if you can verify at least a few resume points before proceeding.
5. 5. What do their referrals say? Some hiring managers like to check referrals before the interview process and weed out candidates that way. Others hold off on referrals until after an initial interview. Depending on your process, you may use this moment to contact those personal references.
6. 6. Does their cover letter tip the balance? If a cover letter shows personality and sincere interest in your open position, it may be a sign of a worthy candidate. If it looks like you've received a form letter—or worse, one that's irrelevant to your job posting—the applicant may not be worth your time.

Once you've narrowed down your job candidates to those who will get an interview, it's time to strategize a bit more. Use these tips to prepare for and conduct interviews.

1. 1. Focus your interview questions on work scenarios. You already know a candidate's skills and accolades from reading their resume. Use the interview to ask them about their past work experiences. Many hiring managers like to ask about a particularly proud moment from the candidate's past. They also like to ask about a time when things went wrong at work and the steps the candidate took to resolve those issues. Try to get a sense of this person as a teammate.
2. 2. Listen carefully, and let the conversation follow its natural flow. Take time to listen carefully to the responses and ask logical follow-up questions. If you only stick to your pre-written script, you may miss the chance to connect with the person you may well hire.
3. 3. Remember the job applicant is interviewing you, too. There is a good chance that the person you are interviewing has applied for multiple jobs. Use the interview to sell yourself and your company as well, and show the job candidate why they would want to choose you.

There is no guarantee that your preferred candidate will accept your offer, but use these tips to increase your odds.

1. 1. Put the offer in writing. To show you're serious, present your chosen candidate with a written offer letter.
2. 2. Lead with the job title and the scope of their role. Present the job in the best possible terms, emphasizing how the person can improve both the company and themselves by taking this role.
3. 3. Be clear and direct about salary and benefits. Tell the applicant how much money they will make, when and how often they will be paid, the scope of employee benefits (including healthcare and time off), and any other details related to compensation.
4. 4. Explain the logistics and chain of command. Tell the prospective hire whom they will report to, where they will fit in the company structure, what the expected hours are, and when you’d like them to start.
5. 5. Establish your expectations from the start. Some companies attach a code of conduct or a complete employee handbook with their offer letter. Establish the company culture and set expectations during the onboarding process.

There is no magic formula for identifying and successfully hiring the best employees, but these key tips can make it easier.

1. 1. Consider a mixture of employment statuses. Some businesses use a mix of full-time employees, part-time employees, temporary employees, and independent contractors to staff their open roles. For the sake of employee morale and efficiency, consider whether you need to post a full-time position for a job that will realistically only last a few months. Alternatively, if you plan on renewing a work contract every few months, consider whether a full-time position would increase employee retention.
2. 2. Get ahead on tax forms. As soon as a new employee signs on, collect all the necessary paperwork related to federal taxes, payroll taxes, state taxes, and local taxes. You will need an IRS employer identification number (EIN). Employees should fill out IRS Form I-9 and Form W-4 before they do a shred of work for you.
3. 3. Comply with local labor laws. Your state's department of labor will have specific guidelines for managing employees. Expect to carry workers' compensation insurance, adhere to anti-discrimination laws, and provide a well-staffed human resources (HR) department to handle employee needs.

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