Starting a business is an exciting venture. However, for many new business owners, hiring employees is a stumbling block that can have long-term consequences for the company. Even established companies sometimes run into problems when expanding their workforce.
Below are five hiring mistakes that a South Carolina employment law lawyer may be able to help you avoid with the proper planning.
Five Hiring Mistakes That Can Cost You Time and Money in the Future
1. Failing to Have a Formal Hiring Process
When you “wing it” as you are hiring potential employees, you could run into several problems. First, you may not have a clear process for checking references and performing background checks. In many cases, a second interview may be necessary to follow up regarding certain questions or issues. When you do not have a formal hiring process, you may be tempted to hire a candidate during the first interview because you “hit it off” with the person. Only after the person begins working do you discover that his or her references or background check would have revealed serious problems that are now your problem.
2. Hiring When You Are Desperate
A benefit of having a comprehensive business plan is that it helps you foresee when you may need to hire additional employees. In addition, you need to think ahead for your busy season so that you can begin the hiring process well in advance of your need for the employees.
When you hire employees out of desperation because you are understaffed, you are more likely to hire employees who may not be a good fit for your company. You focus on the person’s skills and experience only. However, the person may begin work and alienate your entire staff, which could cause great employees to leave.
3. Failing to Establish Job Descriptions
Before you hire a new employee, you must have a clear job description in writing. The job description not only outlines what you expect of your new employee, but it also gives you a checklist of qualities and skills that you need to search for in a new employee. With a job description, you may have three employees who can fill the requirements for one position but have no employees who can fill the requirements for the other two positions.
4. Failing to Identify Employment Status
It may be tempting to hire independent contractors to lower your employment taxes; however, you must be incredibly careful. Misclassifying an employee’s status could cost you much more money, time, and headaches in the future.
If you intend to hire independent contractors, it is a wise step to consult a South Carolina employment law lawyer to ensure that you are not placing any restrictions or obligations on the person that could result in the independent contractor being classified as an employee for tax purposes.
5. Not Hiring Enough Employees
Some employers try to save money by pushing their existing employees to absorb new duties and responsibilities instead of creating new positions within the company. However, this practice can cause good employees to “burn out” and leave your company. In addition, being understaffed can lead to mistakes, lower productivity, and other problems that result in a loss of money instead of saving money.
Contact a South Carolina Employment Law Lawyer if You Have Additional Questions
If you are hiring employees for the first time, expanding your workforce, or considering hiring independent contractors, you could avoid hiring mistakes by discussing your options with a South Carolina employment law lawyer before making any big moves. Schedule a consult with a member of our team at Willcox, Buyck & Williams, P.A. today.