Employees

While some small businesses are owned and operated by one person, most have a number of employees, including some that may work on a part-time basis.

Employees are often the “face” of your company — representing your company’s values and how your organization is perceived by others. So finding and retaining good employees is a major issue for companies of all sizes. It’s particularly important for a small business since employees play such critical roles. For example, if there are five people in your company and two leave, you’ve just lost 40% of your staff. So picking the right employees and providing them the right incentives to stay with you is a top priority.  Remember that your employees can help you win new customers, or lose existing ones, depending on their skill level and attitudes.

Making employee choices

Often the best way to find the right employees is to ask your current staff for referrals. You can also find employees by advertising in local papers or placing ads on job search websites that specialize in the type of business you operate. When interviewing potential employees, try to determine if they have the skills you are looking for and are likely to get along with your other employees. Be sure to check references from former employers, too. In a small company, flexibility is especially important, so you’ll want to know that anyone you hire will be part of the team and is prepared to handle several different duties if the need arises.

Remember regulations

You must also be aware of local, state, and federal regulations concerning employees, what protections — like worker's compensation you need to provide, the different payroll filings you need to complete and the amounts you need to pay for things like FICA (Social Security) and unemployment insurance. It pays to work with a tax professional or accountant to be sure you avoid any penalties. You may want to outsource your payroll function and filing to a payroll service to help you comply with the regulations.