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So, you've started your own business and you're hopping excited!  You've done well enough to hire your first employee!!  How much better could it get?  Actually, it could get worse if you don't know what your first steps are.  No worries, I'm going to give you some of the most important:
  • Prepare for payroll.  Sure, you could do it yourself, but there are many legitimate accountants out there who can help.  Or, purchase a helpful program such as QuickBooks: http://quickbooks.intuit.com/    
  • Get a good attorney.  Don't get an "all in one" attorney.  Consult a business attorney for business, but an employment attorney for employment issues.  A strong HR consultant can save you big bucks.  If you choose to hire an HR consultant, be sure s/he will admit when s/he does not know the answer to a situation.  Listings by state:  http://www.shrm.org  
  • Choose your sources:  Where do you plan to find your soon to be employee(s)?  Have a plan, including a job description.  Be sure you know whether the job is exempt or nonexempt:
         http://www.flsa.com/coverage.html
  • Post the Laws:  There are certain laws that must be posted and visible for employees.  You can purchase a single all inclusive poster at any number of online sites, or you can go to a government site and download them: 
         Federal: http://www.dol.gov/oasam/boc/osdbu/sbrefa/poster/matrix.htm
         Oregon: http://www.oregon.gov/BOLI/TA/Req_Post.shtml
Frankly, for the paltry amount onsite companies charge, and for the peace of mind, I'd purchase the all in one (or two), and call it good.
  • Have an Employee File::  There are certain things you must have for each employee, you may as well get on the wagon at the beginning of the trip and put together a structured file with your first employee:
         ^ Employee Personal Information - name, address, home phone, cell phone and any other.
  •  Have a clue about pay::  You need to have a ballpark range for salary.  Although it may be a bit high, http://www.salary.com is one good place to go.  
  • Create/purchase a job application form:   There are many types/lengths available on the web.  Be sure you choose a reputable source so that the necessary questions are on it!
  • Post the Laws::  There are certain laws that must be posted and visible for employees.  You can purchase a single all inclusive poster at any number of online sites, or you can go to a government site and download them: 
         Federal: http://www.dol.gov/oasam/boc/osdbu/sbrefa/poster/matrix.htm
        Oregon: http://www.oregon.gov/BOLI/TA/Req_Post.shtml
        Frankly, for the paltry amount onsite companies charge, and for the peace of mind, I'd   
        purchase the all in one (or two), and call it good. 


  • Have an Employee File:  There are certain things you must have for each employee, you may as well get on the wagon at the beginning of the trip and put together a structured file with your first employee:
              ^ Employee Personal Information - name, address, home phone, cell phone and any
                other information you might need for your particular company (such as emergency 
                contact name)  
              ^ Special awards/recognition 
              ^ Performance Reviews & discipline records.
              ^ Pay and whether employee is Exempt or Nonexempt.
              ^ Job Title
              ^ W4
    *I9's and medical document must be placed in a separate folder/notebook
  • Employee Handbook:  It doesn't have to be much, rather, it should tell the employee what the company's culture is and any policies that you want in place.  The Handbook can set the tone for the company.  For a small company, it may be bare bones, but you need your employee(s) to understand what is expected in behavior/appearance, etc.
  • Check out insurance coverage for yourself and your employee(s).  There is coverage available for a two person company.  Also, there may be a larger organization the company can join and get the benefit of "group" insurance.

Well, that's enough for this time.  Launching a business...exciting times.  Until next time, stay focused and have fun


 

    Author
    Iris Sasaki

    Iris is an HR pro who has been part of the Portland business scene for over 20 years.   She is also a co-founder of PeoplePowerProfits, an organization dedicated to the success of businesses in the Pacific Northwest.

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Iris Sasaki-HR, LLC 503.781.8982 iris_sasakiHR@yahoo.com