Employees are a very important part of a growing business. As the business owner, you create the vision for the company, raise the necessary money to run the business, set the business practices, and oversee the operations of the business. But the employees are often responsible for the small, day-to-day tasks involved in running the business. They must interact with customers, deal with small problems that arise, and do many other things to keep the business running smoothly. If they perform their jobs well, they can help the business reach its goals. But in any of those responsibilities, the employees can also cause tremendous problems for you. So choosing good employees is extremely important to the long-term success of any business.

Not every business needs employees, so the decision to hire employees should be made carefully and after a great deal of thought. Before you even think about hiring an employee, you might want to ask yourself the following questions to assess your need for extra help.

• What tasks could I be performing if I had more time? Would these tasks make me more money?

• What tasks can I give to someone else that would not negatively affect my business while the employee learns how to perform those tasks?

• How much could I afford to pay another person? Is that a fair wage?

• During which hours of the day do I need help the most?

If, after thinking about these questions, you decide that your business really is ready for employees, think about three critical periods involved in working with employees.

Before Hiring an Employee

In making hiring decisions, you shouldn’t just hire whoever is available—you should hire the best person for the job. Finding the right person for the job is a hard task, but it can be accomplished by following these steps.

1. Commit to take as much time as you need in order to find the right person for the job.

2. Know what you are looking for. Decide what qualifications your employee needs to have and what kind of person will fit the culture and values of the company.

3. Before meeting any candidates, write out a job description. Include in the description a list of the following items: (a) what work experience the person must have, (b) what the job entails, and (c) a contract or work agreement stating what hours the employee will work, what the employee will be paid, how often the employee will be evaluated, and what consequences will apply if certain conditions of the contract are not met.

4. Check each applicant’s references from other jobs.

5. Get to know the people you consider hiring. Interview them at least twice. If you already have a trusted employee, have that employee do some of the interviewing as well.
   

Immediately After Hiring an Employee

Your hiring responsibility does not end with the hiring of a qualified applicant. As soon as you carefully choose a new employee, take time to train the person—to give the new employee the tools needed for success in the job. Teach employees exactly what their responsibilities are, and make sure they feel comfortable with their duties before they have to perform them. Although you will have hired intelligent, capable people, you’d do best to assume that the employees know nothing and must be shown how to do everything. This attitude will remind you to be specific in your instructions, to be patient as the employees learn, and to help them build their level of confidence. Careful training also ensures that you don’t have to continually correct your employees and run the risk of tearing down their morale.

As you begin training employees, explain to them the purpose of the training. Explain that while in training—and for a certain period of time after the training—they are to do their tasks exactly as you want them done. Explain that after that time expires, if they have discovered a more effective or efficient way of doing the tasks, then—and only then—will you have a discussion about their “better way.”

If, after a few days, you find that the employee will not take direction from you or that he is not working well with the customers or other employees, then you need to take corrective action immediately, rather than waiting and hoping that the person will change. People generally don’t change on their own, unless they are shown a better way.

When Firing an Employee

All employers hope that their employees will work out perfectly—that they will be able to do a great job and that they will be an excellent match for the business. But unfortunately, very few employees will be a perfect fit for the business’ needs. Once you decide that an employee isn’t going to work out, do not delay in letting the employee go and starting the process to hire a new one.

You don’t want to be left with an important job to be done and no one to do it for you. So you should start immediately interviewing to find someone to replace the employee. Don’t make the mistake of keeping the problem employee on your payroll; unhappy or unproductive employees can bring down others’ morale, reduce the level of performance of other employees, and even completely ruin a business if they are not dealt with promptly.