Sherman Oaks Accounting & Bookkeeping powered by One Source Services, Inc. knows that hiring employees is an important milestone for many entrepreneurs. We’ve experienced it firsthand!
It means the business is growing.
It also means more taxes, record keeping, legal compliance, and other responsibilities.
Every employer is familiar with the cycle of new employees coming in to replace ones that are going out, referred to as employee turnover, and it’s in your best interest to reduce it as much as possible.
It takes time and money to hire and train new employees. Open jobs must be advertised, candidates screened, on-boarded, and trained while exiting employees are terminated.
It’s important to measure employee turnover, estimate and budget your cost-to-hire, and reduce employee turnover.
Sherman Oaks Accounting & Bookkeeping powered by One Source Services, Inc. compiled a few tips on how to encourage employees to stick with you. There are many free and low-cost solutions.
HIRE RIGHT. No matter how closely a candidate’s skill set may match your job requirements, they won’t stick around if they don’t match your business culture.
Screen prospects for how well they’ll fit behaviorally. During the interview, you can tell them about the culture and show them around. Plus, add some behavioral screening questions to your repertoire. For example:
– Tell me about a mistake you made, why it happened, and how you handled it.
– Describe a time you solved a challenging problem on your own.
– What’s a difficult decision you made at work and how did you arrive at it?
– Tell me about a time you dealt with an upset or angry customer. What could you have done differently?
– Have you ever disagreed with a manager? How did you resolve it?
– Describe a time when you were uncomfortable with a change. What did you do?
PAY COMPETITIVELY. Workers seek employment elsewhere when they don’t feel well-compensated. They have living expenses including food, housing, utilities, and extras to cover. Ensure competitive pay by conducting market research to learn what businesses pay in your area. To hire an entry-level bookkeeper in Los Angeles, research what other Los Angeles businesses are paying entry-level bookkeepers first.
Employers should also offer competitive benefits that personnel want. Again, start by researching what other businesses in your area offer.
PRAISE GENEROUSLY. Workers stick around when they feel respected and acknowledged. Create a motivating work environment by showing appreciation for something done right. Congratulate them for projects completed before deadlines or when particularly challenging jobs get done. Tell them you see their hard work. When someone does something truly worth acknowledging, don’t hold back! Praise doesn’t cost a thing.
OFFER GROWTH. Employees go elsewhere when they feel stagnate. Most workers want to increase their knowledge, skills, and climb the career ladder. Give employees purpose and a sense of direction, a projected career path, and they’ll likely stay longer.
COMPLY WITH THE LAW. Navigating labor laws can be tricky. We’ve compiled a few resources below:
#1. Classify Workers Correctly. The Fair Labor Standards Act (FLSA) says employees must be classified one of two ways:
W-2: For W-2 workers, employers handle employee Social Security and Medicare withholdings, must purchase worker’s compensation coverage and unemployment insurance, and pay state, federal, and sometimes local payroll taxes. Employers must pay a minimum wage and overtime. You can read more about W-2 employer responsibilities on the IRS website.
1099: 1099 contractors handle their own taxes, employers don’t have to pay Medicare and Social Security, or purchase worker’s compensation and unemployment insurance. However, employers must report the contractor’s income on a year-end 1099 form.
If you’re not sure whether you should have 1099 or W-2 employees, Sherman Oaks Accounting & Bookkeeping powered by One Source Services, Inc. published an article about how to correctly classify workers and maintain documentation to protect your position as an employer.
#2. Hang The Poster. Employers must post federal and state labor law posters anyplace where work might happen. This includes a home office, your garage, or anywhere else an employee might work. Check the California Department of Industrial Relations website for more information about workplace posting requirements.
#3. Don’t Discriminate. Employers must always consider anti-discrimination laws when hiring, managing, and terminating workers. Violations result in big penalties. The United States Equal Employment Opportunity Commission (EEOC) protects workers from discrimination based on race, color, religion, sex (including pregnancy, gender identity, and sexual orientation), national origin, age (40 or older), and disability or genetic information.
#4. Work Safe. According to the OSHA Act , employers are responsible for ensuring safe work spaces for employees, free of identified hazards. This includes providing safe equipment and protective wear, safety training, installing compliant emergency stations, and more.
#5. Worker’s Compensation. Most states require employers to carry worker’s compensation insurance. It protects employers and provides for workers in the unfortunate event that someone gets hurt on the job. This convenient chart details compliance requirements by state.
Not sure which worker’s comp policy is right for your business? Sherman Oaks Accounting & Bookkeeping powered by One Source Services, Inc. can help with solutions including pay-as-you-go premiums.
#6. Talk About Health Care. The Affordable Healthcare Act, also known as Obamacare, implemented numerous requirements for small businesses. Although the “individual mandate” piece was removed, there are other employer responsibilities even if you don’t provide employees with health insurance, like giving workers information about the Health Insurance Marketplace. Learn more about how the Affordable Care Act affects small businesses on the Healthcare.gov website.
As an employer, you depend on your workforce for business growth and success while they depend on you for their livelihoods. Nurture employee loyalty by following the advice above and watch your business thrive!
Sherman Oaks Accounting & Bookkeeping powered by One Source Services, Inc. is always available to answer questions and help guide employers. We provide HR management, support, and even recruiting and hiring assistance.
We’re not just accountants!