Posts Tagged ‘hiring’
The Best Consultants Money Can’t Buy
Friday, May 9th, 2008
No no…I’m not referring to Paris and Nicole. Sorry for the bait and switch.
As savvy as those two are at marketing (themselves) I’m referring instead to good old fashioned business students.
We all know how the internship program works. Companies offer students an opportunity to gain "valuable experience" and some times even compensation in exchange for a semester of what can be boiled down to as free labor. The students will file, fax, answer phones and fetch coffee in the hopes that their time has been spent earning them a good recommendation and bonus points on their resume.
But now entrepreneurs are looking for a more mutually beneficial relationship between their businesses and students. And this simple twist on the old standard seems to really be taking off.
A recent New York Times article highlights a few of these examples including a parachute company that requested students compile a semesters worth of recommendations for updating their website and a gourmet foods start up that had the students compose their business plan. The students garnered real life experience as well as some other perks (the parachute company offered the students a free sky diving trip!).
Business students as contractors can offer a world of insight in the form of consultations and for the low low price of real world business experience, many jump at the chance to participate.
It’s certainly something to think about. For more information about the benefits of student contractors check out Hiring Cheap Help - How Student Contractors Can Benefit Your Business
Tags: contractors, cost cutting, hiring, Hiring and Human Resources, HR, internships, Rebecca Button, small business, startups, students
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A Primer on Finding Good Employees for Your Small Business
Thursday, April 24th, 2008
All my life, I have heard people say that good help is hard to find. Why is that?
Actually, there are several reasons that increasing numbers of small businesses are turning to spouses and other family members to help them fill their staffing holes.
Let’s take a look at a few of them.
Benefits
The first reason lots of small business owners cannot find good employees is that they want something we do not have. Most qualified people are looking for a benefits package. As small business owners, we can’t always afford to offer benefits like medical and dental insurance, paid holidays and vacation time.
In this case, the solution is to find a qualified worker that is willing to help you grow your business. They may be comfortable looking forward to the time when you have built the business up enough that you can afford to give them a great benefits package.
You can further help yourself find that person if you are willing to draw up a contract that outlines the benefits package once that employee helps you grow your business.
Qualifications
Another reason that we cannot find the right employees for our small businesses is that people are not qualified for the job. In this case, you must be willing to train someone for the job.
After that, if they need more training, you can pay for them to take a course at a at a college campus that offers a course in your area of business. If they do not have the course at a bricks and mortar college in your area, offer to pay for the employee to take an online course.
Personality
In some cases, small business owners need to make some changes. Sometimes, people just do not like working small business owners because they are so demanding and like things done a certain way. Many business owners get into an "I can do it better myself" mentality. Sometimes we need to learn to lighten up and accept compromise.
If someone is willing to do a job that you will not have to do later, you should be grateful. If the job is done well, you should be happy and enjoy the fact that you have someone to help you move towards your goal of growing your business.
If you are able to offer benefits, and are easy to get along with, then finding good qualified employees should not be a big problem. If you realize the problem is within you, you need to take some time to focus on changing your attitude. If you are willing to make these changes, then the good employees you need are out there - all you have to do is find them.
Tags: advice, finding good employees, hiring, Hiring and Human Resources, Leeia Ladpoh, tips
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Use a Professional Employment Organization and Save on Recruitment Costs
Friday, April 18th, 2008
If your business is successful enough to have numerous employees, then you’ll be aware of how costly it can be to administer. Whether it’s employee benefits, health plans, simple payroll details or more, the costs to maintain your employee base can soon mount up. If you’re finding that it’s a cost that’s draining your finances, then you may want to consider using a Professional Employment Organization, or PEO.
What is a PEO?
The best way to look at a professional employment organization is to consider it an outsourced part of your existing HR department. They can handle everything that an in-house HR department can, and often much more as well. For example, because experts in HR staff an outsourced HR company, you can be sure that people who know what they’re doing, as opposed to a single HR specialist in-house with normal administrative assistants, are meeting all your employee details.
Additionally, as well as the cost-effectiveness of a professional employment organization, they can also handle the legal aspects that having a business with employees can entail. This includes hiring the employee; setting up their payroll details, insurance and taxes; and generally employing your staff member for you.
One area not to confuse a PEO with is that of a temporary employment agency. Although a PEO is providing you with your staff, it’s actually as a full-time employee, as opposed to a temp who could move on at any time. This means that should an employee provided to you by a PEO wish to leave your company, they have to work to your requirements. So if you need one month’s notice or three months, that’s what they have to abide by.
The Benefits of a PEO
One of the biggest benefits of using a PEO is the overall savings it can make to your company’s finances. Since you’re not responsible for any of the employee’s costs, you don’t have to worry about the extra costs that these can incur - setting up taxes and the related admin costs, health plans, training, etc. All these costs are taken care of by the PEO.
Additionally, since a PEO handles all of the employee’s financial details, they can also offer benefits that you might not be eligible for with a normal recruitment agency. For example, you could enjoy the benefits of group insurance, enabling you to save even more money on your usual employee costs. A PEO can offer you this package since it supplies numerous small businesses with employees, and can therefore offer the savings involved back to the employer.
If your business looks set to expand and you need new staff, consider a PEO before you set any advertising in motion for recruitment purposes. Not only will it save you the cost of the advertising, but it can save you much, much more in the long run.
Tags: advice, danny brown, hiring, Hiring and Human Resources, professional employment organizations, recruitment, tips
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Recruiting Staff Needn’t Cost A Fortune
Friday, March 28th, 2008
An important part of any company’s success is the staff it employs. Although the management team may be the driving force behind a business, the people on the “ground floor” are just as important - without them your business would probably struggle to meet demands. Therefore it’s important that you attract the right caliber of employee.
Often this can be extremely expensive, with advertising costs in newspapers rising all the time. However, there are other methods in which you can recruit new employees, and often at a fraction of the overall cost of traditional advertising. Some of the most effective methods include:
* Advertise on your website. Many people looking for jobs will often use online searches to find companies in the industries that interest them. If they find your website, then having employment vacancies on your site is a great way to attract new employees. Plus it’s free, so the cost-effectiveness is 100%.
* Use online resources such as Craigslist. This is a hugely popular method for jobseekers to search for the latest job vacancies, and more and more employers are turning to this approach. With the web being such an integral part of everyday life, websites such as Craigslist has become normal for millions of Internet users everywhere. Again, like advertising on your website, it’s free to post on Craigslist and the results can speak for themselves.
* Recruitment agencies can also be a relatively low-cost way of finding your next employee. Although many of the larger ones can be expensive, many smaller agencies will charge you an extremely reasonable rate to find potential employees for you. This also saves you money by taking away advertising costs, and you can even employ someone via an agency on a trial basis. This means that the agency pays the employee’s wages, eligible holiday pay, etc, and that lets you determine whether the employee is right for you or not before taking on full-time.
* Job fairs can also offer excellent ways of meeting jobseekers in a cost-effective manner. Because of the way that job fairs are set up, there will be literally thousands of potential employees being put in front of your company. Now compare these figures to how much it would cost to advertise several hundred times to find the same amount of potential employees, and you can see why job fairs are becoming more popular with both businesses and employees.
* Perhaps one of the most effective ways of advertising for or attracting new staff is simply by having an open day at your place of business. This can be advertised in your local newspaper, and it will ensure that people that are genuinely interested in working for your company will come along.
Tags: advice, danny brown, hiring, Hiring and Human Resources, staffing, tips
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What Every Brick and Mortar Store Owner Should Know
Monday, March 10th, 2008
Consumers are what make the world go ’round. Without consumers, there would be no businesses, and without businesses we all would be poor. So why is it that business owners are not mindful of what is going on in their stores? If you are considering opening a store or improving the one you have, take heed to the following suggestions.
Staffing. Schedule enough employees to work cash registers during your busy times. The biggest turnoff for consumers is when they have picked up one or two items and there is only one lane open.
Merchandising. Invest in bright, colorful displays that tell customers what is on sale. A person who doesn’t have much time to waste doesn’t want to find out about your promotions at the register, so be sure to notify them in advance and take down signs immediately after the promotion is over. Instruct employees to inform consumers when your store will be having another sale.
Accessibility. Make aisles wide enough for mothers to bring strollers. Oftentimes mothers will shop during the middle of the day when their husbands are away at work, and that means she will have to bring her children. If you want her business, make the aisles bigger.
Make your store handicap friendly. People in wheelchairs, walking with canes, or crutches should be able to maneuver around your store. Their dollars are just as good as the person with two working eyes and legs.
Return policy. Avoid hassling consumers about returned items. If your policy is clear, then post it so everyone can see it, and make sure your employees remind consumers what they can do if they don’t like the item for whatever reason. Don’t make it hard for customers to return items.
Loyalty programs. Offer a special discount card for your most loyal customers. You’ve seen those cards offered by other stores - people enjoy seeing the money they are saving by shopping at those stores. If they know they are getting rewarded for shopping at your store, they just might come back.
Conduct surveys. Everyone who shops at your store should be offered the opportunity to state his or her opinion. Whether you choose to have a paper system or verbal communication with them, find out their needs and how you are doing as compared to other stores.
Personal attention. Introduce yourself as the owner and ask us if there is anything you can do for them. What better way to show you care about your customers?
Investment options. Provide an easy to understand opportunity to invest in your business. Some people may want to invest in your company, so why not make some information available?
Create an affiliate marketing program. These programs are popular via the Internet. When someone refers your business to others, he or she receives a commission.
Cleanliness. Be sure your store is clean and organized. Some stores are faced with lawsuits simply because they are a hazard.
Be careful with food items. If you offer edible goods, check your expiration dates before you place items on the shelf.
Check out your competition. Research your local competitors when it comes to pricing. If you don’t want the store down the street to take your business, make your prices competitive.
Don’t advertise falsely. Consumers aren’t stupid, so don’t use items that you don’t have or very little of to draw them to your store. Be sure the description follows the standard of "what you see is what you get."
Direct mail. Personalize your advertisements from time and time by sending a letter with a coupon. Although it is convenient to receive catalogs in the mail, it isn’t personal. Thank the consumer with a letter that introduces any new items that have come to your store and enclose a discount coupon that encourages them to come back.
Tags: advice, brick and mortar, entrepreneur, hiring, merchandising, Rebecca Button, Starting a Business, tips
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How to Determine When to Hire More Employees
Tuesday, February 19th, 2008
Determining when to hire more employees can be very complex; but if your current employees are working longer hours, skipping lunches and breaks, or cancelling vacation plans, then it’s time to hop on the ol’ cluetrain and start increasing your staffing levels. How do you know how many more employees to hire? Should you consider temporary employees versus permanent employees? The answers to these questions are largely based on your industry and the trends within the industry, as well as your individual business’s needs. Here are some tips on determining when it is right to increase your staffing levels or just shift around the workload.
Identify the problem areas. Are there inefficiencies in time management, or are your employees truly overworked? If the workload can be transferred either permanently or temporarily to existing employees, talk with your employees to determine where the greatest need is and what is not getting accomplished that needs to be dealt with. Enlisting the help of your existing employees in determining workload will allow them to be a part of the solution rather than feel a part of the problem. A decrease in performance across-the-board will also give an indication employees being overworked. Often if the performance of one or more employees is slipping, and they have normally been great performers, that is an indication that they are being overworked and additional employees are needed.
Just ask. Another way to determine if you need to hire more employees is through the comments or complaints made by employees. This can be through a casual conversation or through a formal complaint/feedback procedure you have established. Make sure that you have your finger on the pulse of the organization. If you are hearing complaints about working conditions on a regular basis, this could mean that employees are being overworked and may be stressed.
Employee health should be of utmost importance. An increase in your group health insurance claims could help to identify that your staff is overworked and it is time to hire additional help. An increase in doctor visits due to stress definitely indicates a problem There are also some employees that will choose not to express their dissatisfaction verbally-meaning they will internalize the issues, creating physical problems.
Too busy to hire more employees. Isn’t this a catch-22 situation, if there ever was one. You need more employees because you’re so busy, but you’re too busy to go through the hiring process. A financial indication is if your organization has been too busy to access financial resources such as a credit line. This would indicate that the organization is too busy, or that it lacks the talent of individuals within the organization to know what to do with the credit line or funding. The financial resources available to organizations can help with forward progress of the organization. If you do determine that your organization lacks the right mix of talent, consider using the funding available to you to recruit the talent needed to propel your organization to the next level.
Training issues. Another tip is if the organization is training too much or too little. Training and development is imperative to the success of an organization. However, if there is a significant amount of training occurring, then that could be indicative of the lack of skills within the organization. On the flip side, if there is not enough training where skills can be developed or enhanced, you are doing a disservice to your employees and ultimately to the organization.
There is no single situation to determine a need to increase staffing levels. If there are a few things going on that have not been factors or problems before, then it is time to closely review workloads and the need for either increasing staffing levels or shifting responsibilities. Continued problems with staffing levels can be detrimental to the overall success of your business.
Tags: advice, hiring, Hiring and Human Resources, hiring more employees, larry Slusser, tips
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Sure-Fire Tips For Hiring Qualified Employees
Monday, December 17th, 2007
Let’s face it, today’s world frowns on firing employees. Not only is it not nice for them, but you might also find yourself in trouble with labor laws or with the employee’s legal team. A fired employee also represents a lot of money lost as far as time and training, not to mention the additional cost of finding a replacement.
The best way to avoid all that hassle, and the stress of trying to fill vacant positions, is to be careful in your hiring process. Here are some tips to help you hire qualified employees for your business.
Your First Line of Defense is the Resume!
Too many employers miss the warning signs of an unqualified employee in his or her resume. There are some dead giveaways that an employee might not work out for your business. They are:
* Gaps in employment history
* Relatively short periods of employment, usually under six months at a few different places
* A poorly put together resume, in terms of grammar and spelling
* A lack of references
Ask Referral Questions
Some people prefer to check references after the first interview, but phoning around before calling in interviewees can mean some valuable time saved.
You have to be careful in the way you ask the questions due to the insane nature of privacy laws and, more accurately, court interpretation of those laws today; but get an idea of how long the employee worked for the referring company and what their position was.
Keep Them on Their Toes in an Interview
Most businesses will need employees that are somewhat adaptable, so it’s good to ask them a few non-standard questions. A good interview should tell you everything you need to know about a prospect’s potential; if they are outgoing, you will likely know it right away - the interview will go smoothly and take much longer than other interviews.
On the other hand, be careful; lots of smooth-talkers make their way into a business and then turn out to be duds. Record what the interviewee is saying and check the facts against your paperwork.
Include an Application Form
By paperwork, we mean not only the resume of the candidate, but also a fully completed application form. The more information you have about a candidate, the better - and if they are just an interview smoothie, you will be able to determine that when all the information is in front of you.
Remember that hiring the right employees for your positions will make all the difference to your bottom line. Don’t take a chance on hiring a dud, and get as much information as you can. Then, select from among the best candidates.
Tags: advice, finding qualified employees, hiring, Hiring and Human Resources, Leeia Ladipoh, tips
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Hiring Cheap Help - How Student Contractors Can Benefit Your Business
Friday, October 5th, 2007
You know how important outsourcing is with the business world today. This is something you can incorporate into your own business by hiring some really great help at a cheap price. A great way to do this is to hire student contractors to handle certain things for you. You can get help from some really talented and capable individuals at a price that won’t put you out of business. Student contractors can handle some really important things for you, such as web design, logo design, marketing, processing orders, etc. These are things that they will eventually use when they graduate, but you can give them some great practice. Here are some tips for finding student contractors.
Make a list of colleges and universities in your area and visit their websites. There are student contractors available at most schools and a lot of them will have their information available for you to contact them. You can also contact the computer science, graphic design, or marketing departments at colleges or universities. Many of them also have career centers where you can find students who are looking for specific types of jobs to do. You can also place a free job advertisement through sites like Craigslist.
You will probably want to avoid work study programs at colleges or universities. While the students in them might have excellent skills, the colleges normally try to get positions for these students which are within the school, or at non profit places. Check with any students that you speak to and make sure they own their own computers. Some colleges will not allow students to use school computers for profit-oriented activities. By making sure you ask this question, you can keep the student from getting penalized. If you’re local and have the space, you can provide a computer in your office for the student to use. You will then be able to monitor progress easily.
You will be able to get college students to work for you much more cheaply than you would be able to hire a professional to do it, but you want to make sure you are being fair. At least make it worth the student’s time, because you want them to turn quality work in. When you try to get away with paying next to nothing, you might be very unsatisfied with the quality of the work you get in return.
Also, make sure you discuss billing and contracts up front. Many students have never had to deal with this sort of thing, so you may have to go over it with them to a certain extent. If you have them sign any contracts, like non disclosure agreements or anything else, go over exactly what they mean and what the student is agreeing to.
You never know when you might lose the services of the student (graduation, end of semester), so you want to make sure your student contractor is documenting their work. For example, designing a website can include inserting command codes, or things of that nature. You want to know what has been done to create this or that effect. This way, when your time with a particular student is up, you won’t be left in the dark and you can easily transition the work to someone else.
Hiring a student contractor can work for many facets of your business and be a huge benefit to both parties involved. You can cut down on some of the costs to run your business, while giving the student on-the-job learning and experience he or she needs to succeed "in the real world" after graduation.
Tags: advice, cheap help, hiring, Hiring and Human Resources, student contractors, tips
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Minimum Wage Increase
Tuesday, August 14th, 2007
Q: I know that the federal minimum wage is set to go up soon, but does it apply to me? I have three employees. Is there anything else I should know about the minimum wage?
Jesse
A: You are right that the minimum wage is due to increase. The schedule for the increase is as follows:
- July 24, 2007: from $5.15 an hour to $5.85 per hour
- July 24, 2008: From $5.85 to $6.55
- July 24, 2009: From $6.55 to $7.25
Does the increase apply to your business? Well, it depends.
First it depends upon what state you are in. Because it has been a decade since the federal minimum wage was last increased, many states have since passed minimum wage law increases that exceed the federal standard. For example, in California, the minimum wage is $7.50 an hour. In Washington D.C. it is $7.00. When your state’s minimum wage is higher than that of the feds, you must go with your state’s law. Therefore, if your state has a higher minimum wage than $5.85 an hour, the increase in the federal minimum wage does not affect you. (You can find out what your state’s minimum wage rules are here .)
Conversely, if your state has a minimum wage equal to the federal minimum wage (such as Texas, Kentucky, or North Dakota for instance) then the federal wage increase potentially applies to your business and your employees.
If that is the case, then the next consideration is whether your business is the type to which the minimum wage applies. According to the Department of Labor, "The minimum wage law applies to employees of enterprises that do at least $500,000 in business a year. It also applies to employees of smaller firms if the employees are engaged in interstate commerce or in the production of goods for commerce."
Next, to see whether the increase is applicable to you, you have to determine if your employees are the type to which the minimum wage applies or whether they would be considered "exempt".
Exemptions are as follows:
- Salaried executives and managers who make not less than $455 a week.
- Administrative employees doing non-manual work who make at least that same amount.
- Professionals with advanced knowledge making that same amount.
- Creative professionals who use imagination and creativity, and who make at least that $455 figure.
- Computer professionals making that amount of money.
- Outside sales people.
The minimum wage rules are also a bit different for younger employees. Workers under the age of 20 must get at least $4.25 an hour for the first 90 consecutive days of employment. After that, they are due the minimum wage. Similarly, full-time students who work in retail or service stores, agriculture, or colleges must earn at least 85% of the minimum wage.
Finally, special note needs to be taken with employees who receive tips. The federal rule is that a tipped employee is only required to receive $2.13 an hour in wages if the amount of tips received, in addition to their base pay, at least matches the federal minimum wage and the employee retains all tips and that amount is at least $30 a month. If the employee’s tips and the employer $2.13 an hour do not equal the new minimum wage, the employer must make up the difference.
Note again that many states have specific rules for tipped employees, and if the state law mandates a higher payment, that state law trumps the federal one.
For more information, you can visit this site .
Today’s Tip: Do we need this minimum wage increase? I say we sure do. A full-time worker making $5.15 an hour earns $10,712 a year. The federal poverty line is $17,170. Even when you add in programs such as food stamps, that figure is well below the poverty line. The good news is that an increase to $7.25 an hour by 2009, along with food stamps etc., raises the figure to $19,796, which would be 15% above the national poverty line (figures courtesy of the Economic Policy Institute.)
Steven D. Strauss is one of the world’s leading small business experts. His latest book is the Small Business Bible. A lawyer, author, and public speaker, Steve has spoken around the world about entrepreneurship, including at the United Nations, and he has been on CNN, CNBC, MSNBC, The O’Reilly Factor, and many other television and radio shows. If you would like Steve to speak to your group, help your business grow, or if you would like to sign up for his free newsletter, "Small Business Success Secrets!" please visit his website - www.MrAllBiz.com .
Tags: expert advice, hiring, Hiring and Human Resources, human resources, minimum wage, MrAllBiz.com, small business expert, Steve Strauss
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Hire Your Kids to Help Save on Taxes
Monday, July 9th, 2007
A reader recently asked how hiring their children in their business could help save on income taxes. Here’s an example:
In 2006, you could pay your child up to $5,150 (the standard deduction amount) without either of you incurring a tax liability. Suppose you’re in the 28 percent tax bracket and you pay your 15-year-old son (Junior) $5,000 over the course of a year to help package and ship items in your eBay business.
You get a business deduction for the wages paid to Junior, saving you $1,400 (28% of $5,000). If you’re a sole proprietor, you save even more in taxes because this reduces the amount of profit that is subject to self employment taxes (15.3% of $5,000 = an additional tax savings of $765).
Since your son’s earnings are less the standard deduction, he does not owe income taxes on his earnings. Even if you paid Junior more than the standard deduction, you would still save taxes. Since Junior is most likely in a lower tax bracket, his earnings would be taxed at 10 percent or 15 percent rather than 28 percent that you would pay on this income. This is called income shifting.
In addition, because Junior is under age 18, you do not have to pay Social Security, Medicare or Unemployment tax on him, like you would with a regular employee.
You could take this strategy even further by opening an IRA for your son thereby sheltering even more income from taxes.
This is a great strategy if your children are old enough and are interested in working in your business. The only thing to watch is that your children have to actually do legitimate work in the business, and you have to pay them a reasonable wage for the work they do. You can’t pay them $5,000 a year to do household chores or just to empty the garbage can (even if it’s your home office trash can!).
For more ways to save on income taxes, please check out our free special report Tax Tips for eBay Sellers .
Tags: Accounting, CFP, CPA, ebay, Finance, Finance and Accounting, hiring, Kristine McKinley, Tax Tips for eBay Sellers, taxes
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