Equipment Financing – The Best Business Loan Options SHARE Share on facebook Share on twitter Share on linkedin What is Equipment Financing? Equipment financing is
Hiring New Employees in 2020
Hiring new employees can sometimes be costly and time consuming, but choosing good candidates is extremely relevant to the success and longevity of your business. As long as you map out a strategy and are clear and concise to your team and new hires of your expectations, the process should run smoothly. Also take in to account that hiring employees in 2020 may be a little different than in previous years due to a push for more inclusion and fair practices within the workplace.
The average company in the United States spends about $4,000 to hire a new employee and it takes about 50 days to assimilate into the new position, according to Glassdoor. Advertisements can be costly. There are online sites like Monster or Indeed that will post your job and help narrow down candidates. You can pay for internet ads, or choose in-person advertising through job fairs and conventions. Often companies will promote employees from within the company, leading to a salary increase for that worker. Signing incentives can also be costly such as signing bonuses or relocation expenses.
Productivity is lowered when you’re taking managers away from company work to assist with the screening, interviewing and training processes associated with hiring new employees. Some companies will choose to hire recruiters. Recruiters will find the talent to meet the job criteria and they may also offer outside insight that may be needed to better grow your company. Larger companies also utilize their HR Departments to assist with hiring new employees.
You’ll want to make the hiring process as swift as possible in order to return to regular business. Your company’s reputation can help to move the process along quicker. When hiring employees in 2020, you should be aware of the emphasis on culture in the workplace. There has been a huge push for companies to become more racially and gender inclusive. Efforts across the country are being made to make better work dynamics and ensure that the voice and needs of all employees are being met. Having a more diverse workplace will create a larger market and client base for your company.
Millennials and Gen Z also place stress on having a balance between work and life. They place emphasis on fair work hours, maternity/paternity benefits, health benefits and accommodations that align with the unpredictability of life. There is a focus on health and wellness more than ever. We must also acknowledge that the workplace is changing. Many companies are eliminating offices all together and more and more work is being done from home.
A poor reputation raises hiring costs by 10%. Candidates will choose the company with a better reputation causing you to have to raise incentives like salary and benefits. One way to set your business apart when hiring employees is by having a strong company mission. Glassdoor and other sites are being used to determine a company’s culture before even applying. Studies show that younger generations are more selective in the companies that they choose to work for. According to a study done by LinkedIn, 9 out of 10, or 86 percent of millennials would take a pay cut to work for a company whose mission aligns closely with their own, while only 9 percent of baby boomers felt that way. This study shows the major shift in the mentality of workers over the years.
Now that you are ready to start hiring staff, you want to make sure you have a clear plan on what exactly you want. You also need to ensure that your hiring team is all on one accord for what would best suits your company’s needs. Will you choose internal hiring or external hiring? Hiring within your company helps ensure an employee’s loyalty to your business and requires less training. Internal employees are more understanding of the expectations of the job and most likely already have the skills necessary to excel at the job. However sometimes companies need new ideas and a breath of fresh air and that is when hiring externally can benefit your company. Sometimes a new perspective is needed. Also, high demand jobs will also have an influx of candidates, often times providing a pool of potentially better qualified candidates to choose from.
You will also have to determine what is best for you company in terms of hiring employees vs. independent contractors. Hiring independent contractors may be more cost efficient because you will not be required by law to pay payroll taxes. However with private contractors you have less say in the manner that the work is being done and it is often hard to micro manage. This can lead to poor quality work and missed deadlines. For jobs that are more demanding and that have a wider range of responsibilities you may require hiring a new employee. For jobs that require a very specific skill set and level of expertise you may want to reach out to a private contractor, as they are specialized in that area of work. Also if it is a job that needs to be filled only for a short period of time it is best to hire a private contractor.
Being transparent is key when hiring new employees. Be upfront with your new hires as well as current staff towards your expectations. You will want to clearly state the qualifications for the job. Let new hires know what the hiring process will look like. Will there be multiple rounds of interviews? If hired what does the training process look like? Be clear about the job description and requirements of the position. One of the leading reasons people leave a job within the first 3 months is because they felt the job did not match their expectations. Be clear on the terms of the job. What will the salary and benefits look like? Is this position temporary? The more up front you are the less room it leaves for issues down the line.
Go into interviews prepared. Write your questions ahead of time. Look over the candidates resume and tailor your questions to any discrepancies you may come across. Try and be as conversational as possible, allowing room for your candidates to open up. Take notes so you can refer back to them during your evaluation process.
All of the candidates that made it to the interview process are most likely qualified for the job in terms of education and experience. You want to use the interview process to determine characteristics that aren’t always visible on paper. You want to focus on retention. Does this candidate show interest in longevity with the company? The hiring process is not something you want to have to continuously revisit for the same positions. Look at their resume and inquire about jobs held for short periods of time. A Harvard Business study breaks down the most important characteristics to look for when hiring a new employee is ability, social skills and drive.
Once you’ve chosen your candidate, move quickly to close the deal. Often times people interview with multiple companies, you don’t want to wait too long and that person has chosen another company. Sometimes there will be bidding war and negotiations between your new hire and the company, if there is a recruiter involved they will ensure the interest of both the company and employee are met. You will want to move swiftly through this process. Once an agreement is made, send your chosen candidate an offer letter.
There are a lot of traditional, as well as new practices and expectations when it comes to hiring in 2020. Place emphasis on creating an environment where all employees can thrive. Map out exactly what you are looking for and execute. Being efficient during the hiring process will ensure that you aren’t repeatedly hiring new employees. The goal is to have your staff stay with you as long as possible.
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