The other day I was meeting with a client who is thinking about hiring a part time sales person. She has never hired anyone before, so she asked me how to do it.
I got to thinking and realized that I answer this question 2 or 3 times a month and, strangely enough, the answer is always the same. Soooo I’ve decided to outline the steps I recommend every business owner take before hiring anybody. And yes, this advice goes for hiring someone to upgrade your website or haul away your trash as well as hiring full and part time employees.
Thing 1: Write a Job Description
Before you can proceed any further you need to know exactly what you want the person to do. You also need to know what you DON’T want them to do. To do that you will need to create a job description. Here are some things I think you will want to have in that job description:
- How does this position/job help you grow your business? How does s/he help you meet your business goals?
- What are the areas of responsibility you need from this person?
- What is their scope of work?
- Do you provide training for these responsibilities and this scope of work? When? How?
- What will they do? (Spell it out)
- Who do they report to?
- What kind of reports do they need to make each week? Month? Year?
- Do you have an outline for these reports? Examples?
- How will they know if they are succeeding? Failing?
- Which of your customer, suppliers, partners, other staff members are they expected to work with?
- How do you want them to prioritize their time?
- What spending authority to they have?
- Who reports to this person/position? What oversite responsibilities does s/he have?
- What specific projects would you like them to start out doing?
Thing 2: Research Comparable Jobs In Your Industry
You want to find out who else does a job like the one you are hiring for, so you will need to do some reconnaissance to find out what others in your industry are doing. What is this position called by your competitors? What is expected of people in this position? What do their job descriptions look like? What are they getting paid?
This takes a bit of sleuthing on your part. Chances are your competitors aren’t going to show you’re their job descriptions and salary projections. To start with you can check out the labor statistics through the federal government O*NET website (https://www.onetonline.org/). Consult other job boards such as LinkedIn (https://www.linkedin.com/), Glass Door (https://www.glassdoor.com/index.htm), and Simply Hired (http://www.simplyhired.com/).
Of course, market forces in your specific location will have an impact on salary range, so be sure to adjust accordingly.
Thing 3: Conduct a Cost/Benefit Analysis Of The Position
Every employee or contract worker should add value to your business. If they don’t, why would you bother to hire them? (Trick question. . . if they don’t add value you shouldn’t hire them!)
To conduct a cost/benefit analysis begin by calculating ALL costs associated with the position. These costs should include recruiting and hiring costs, training/onboarding costs, salary, benefits, and additional fringe expenses.
The next step is to determine the expected benefit this person will bring to your company. How much additional revenue will they bring in? What costs savings will they produce?
Once you have determined both costs and benefits you can clearly see if it makes sense to hire for this position or not. You may have to play with the numbers to make things work out, but bottom line is that you want your benefits to be MORE than your costs!
That’s it. Before you even think about hiring you need to do these three very basic things. They will provide a solid guideline for your hiring processes—including hiring contract workers such as web developers.