Before you add a new employee to your startup, you should run through a checklist to make sure that you really need (and can afford) another person. Don’t take any hiring decision lightly. Even someone making minimum wage has the potential to put a strain on your startup. Let’s take a look at the elements of a hiring checklist that every startup should consult before a job ad is even posted.
Find Someone with Startup Experience
A startup is a unique situation that requires a certain type of individual. Considering the state of the economy, you’ll likely get an influx of resumes for your opening. Give preference towards those with startup experience. Small companies succeed when they employ people who can work in an autonomous manner. This means that you should seek out those who can work alone without significant oversight. Lean towards self starters instead of those who’ve worked for large organizations with tiers of management and constant supervision.
Although it might sound obvious, your startup should be able to afford a new employee’s wage or salary as well as other new hire expenses. Your startup might offer costly benefits and other employee perks that everyone is eligible for. There’s also tax expenses, worker’s compensation fees, insurance costs and much more. Consider what it costs for the employee to take a vacation, personal time and call in sick. Don’t forget about what it will cost you to train him. It’ll not only take time but also the effort of another employee who could be using his time and energy to do something else.
Is Another Person Really Necessary?
Once you’ve determined that you can afford a new employee, take the time to consider if an addition is really necessary. Consult with your managers and employees to determine if there is a more cost effective solution like offering overtime or using a local freelancer on a part time basis. If you’ve determined that you really do need a new employee, use him in the area where his efforts are most needed. Make the most of the new addition with your company’s bottom line in mind.
Always ask candidates for references. Beyond this simple step, you should ask those in your social circle if they know someone who might be the perfect fit your startup’s opening. Ask colleagues, friends and others that you trust if they have someone in mind who they can vouch for. It’s easier to put your faith in those you trust than a stranger who answers your ad on an Internet job board.
Utilize High Tech Solutions
Don’t devote significant manpower, time and resources to searching for one new employee. Let today’s high tech solutions simplify the process. For example, use anapplicant tracking system (ATS) to navigate through all of the information instead of tasking your current human resources personnel to do it. ATS software and similar high tech solutions will whittle down the field to applicants who really meet your criteria. It’ll save your startup a significant amount of time and effort while simultaneously pinpointing the field’s best candidates.