Legal Requirements to Fulfill Before Hiring Employees

Your business may be raring to hire its first employee, but have you taken all the necessary steps to set yourself up as a lawful employer?

Beyond the sheer decision of whether to add new employees to your business, there are several steps required by the federal and state government that must be taken before you can hire someone.

Here’s a look at 10 legal requirements every employer must do before taking on a new hire:

1. Apply for an EIN.

Every employer—even if you just employ one person—is required to have a federal Employer Identification Number (EIN) that serves as the entity’s tax ID. The Internal Revenue Service (IRS) offers several ways to apply: The fastest and preferred way to file is online using the Internet application, which allows you to receive your EIN immediately.

But you can also apply by phone, standard mail or fax. All you need to apply is the taxpayer ID number, such as the Social Security number, of the principal officer or owner of the company and basic information about the company, such as whether and how it’s incorporated.

2. Register with your state’s unemployment insurance office.

For every employee you hire, including the first one, you will need to pay unemployment taxes to your state. This generally requires registering with the state office that oversees unemployment insurance and then reporting quarterly wage details of each employee along with making the required payments into the fund. The taxes can typically be paid electronically.

Each state has its own rules and deadlines for payments, so it’s important to familiarize yourself with your state’s rules. All states now have online resources to inform employers on their requirements regarding unemployment insurance. Do a Google search for “unemployment insurance,” “employers” and your state’s name to find your state’s website with that information.

3. Verify each prospective hire’s eligibility to work.

Before you hire someone, you need to verify that they are who they say they are, and that they are legally able to work inside in the United States. This is done through filling out the U.S. Citizenship and Immigration Services’ Form I-9 with the new worker after they’ve accepted the job offer.

Along with filling out the form, the new employee will have to provide an original document (such as a U.S. passport) or documents (such as a state driver’s license and a Social Security card) that prove their identity and legal status to work in the U.S. You’ll need to examine the documents for authenticity (and perhaps photocopy them). A Form I-9 must be completed within three days of a worker’s first day on the job.

You don’t need to file Form I-9s with USCIS, but you will need to have them on file for three years after hire (or one year after employment ends, whatever is later). It is best to keep all your Form I-9s in a file or binder that only a few people in human resources are able to access, according to the Society for Human Resource Management. You’ll need to be able to produce I-9s should Immigration and Customs Enforcement come calling.

4. Look into your state’s workers’ compensation insurance rules—and get coverage.

Most states require employers to carry workers’ compensation coverage in case an employee gets injured on the job, though some exempt very small employers. It’s important to find out your state’s particular rules and get the required coverage. This database gives a brief summary of each state’s worker’s compensation rules along with links to the applicable state website where you can find more detailed information.

5. Report new employees to state registry.

You will want to keep employee records—such as full names, contact information and Social Security number—for your own administrative purposes. But you’re also required by law to collect that information.

Federal law requires employers to report basic information on new employees within 20 days of hire to the state in which the employee will work. (Some states have even tighter deadlines.) This information is put into the National Directory of New Hires that is used to locate and withhold income from people who owe child support.

The information required includes the new employee’s full name, address and Social Security, your EIN and address and the employee’s date of hire. Most employers collect this information by using an employee information form that all new hires must fill out. (Read eight tips for creating an employee information form.)

6. Set up a payroll and tax withholding system.

You’ll need to withhold federal and state income taxes, as well as federal Social Security and Medicare payroll taxes, from each employee’s paycheck. A reputable third-party payroll provider makes all of this this easy by providing you with a solution in which you can simply type each employee’s compensation, employee benefit deduction and tax withholding information into the system and it will automatically create regular paychecks (paper or electronic) for you while deducting the correct amount for each type of tax withholding for each pay period.

Many large payroll providers also bundle in extra services, such as human resources. Make sure to thoroughly review your options and find a payroll provider that meets all your needs at the right price. You’ll want to find a payroll provider that also has strong customer service and support in case you encounter any problems or have questions.

7. Have all employees fill out form W-4.

Before you can start paying an employee, you need to know how many “allowances” he or she wants withheld for taxes. The more allowances an employee decides to take, the less tax that will be withheld from their paycheck.

Again, payroll providers typically provide a W-4 form and make it easy to enter the information into the system. You just have to ensure every new hire fills it out and submits it. You can also download the W-4 form from IRS.gov.

8. Get and post employee notices.

There are a number of federal labor laws that require employers to post their requirements in conspicuous places in the workplace so that workers understand their rights under the law. For example, you’ll likely need to display a poster about the Fair Labor Standards Act and its rules establishing a minimum wage, overtime pay rules, child labor restrictions, nursing mother protections and more.

What you’re required to post depends on such factors as the size and nature of your business, which state you’re in, whether you have federal contracts or employee disabled or foreign workers, and more. The U.S. Department of Labor has a FirstStep Poster Advisor that will guide you through a series of questions and then provide you PDFs of the posters you likely need to display.

Also note that individual states may have their own poster display requirements. So it makes sense to also contact your state’s labor department for guidance. The U.S. Department of Labor keeps an online contact list of state labor offices.

9. Comply with OSHA rules.

Employing workers also means that you must comply with the federal Occupational Safety and Health Administration (OSHA) and its rules, which go back to the Occupational Safety and Health Act of 1970.

OSHA rules cover a variety of workplace conditions. Think having safe tools and equipment, safe use and maintenance of the equipment, safe handling of hazardous chemicals and much more.

You’ll need to use codes, posters, labels and signs to warn your workers about dangers, as well as provide them necessary training and medical examinations. The OSHA poster, or its state-level equivalent, must be displayed in a prominent workplace location.

10. Establish any necessary employee benefits.

Small businesses with fewer than 50 full-time-equivalent (FTE) employees are exempt from the Affordable Care Act (ACA) mandate that requires larger businesses to carry health insurance for their employees or pay an annual penalty. That said, the federal government offers incentives for small employers who do offer insurance.

Employers with fewer than 50 FTE employees can get their employees insurance through the Small Business Health Options Program (SHOP) exchanges. Those with fewer than 25 FTE employees can qualify for tax credits worth up to 50% the cost of the health insurance premium.

Depending on your industry and market, offering health insurance to employees may be a smart, competitive move even if you’re not required by law to offer it. Several states are also in the process of enacting regulations that will require employers who don’t offer their employees a standard retirement plan—such as a 401(k) or pension—a state-sponsored retirement plan.

California, for example, is phasing in rules requiring employers with five or more employees to either automatically make IRA payroll deductions for each employee through its CalSavers Program or offer an employer-sponsored retirement plan.

Covering Your Bases

Though these are the main steps employers must take that are required by federal or state law, there are other smart things to do before you start employing people. These include writing an employee handbook, so there are no questions about your rules and protocols for employees (even your first hire), and creating a personnel file for every employee.

While keeping personnel files is not technically required by aw, it protects you if you ever get sued by an employee. It also makes it easy for you to quickly find any relevant information about an employee, including their basic information, work and performance history, and benefits enrollment information, and workplace injury history.

Medical records, any disciplinary actions taken against the employee, and I-9 forms should be kept outside the personnel file. (Nolo offers tips on what should—and shouldn’t—go into an employee’s personnel file.) Once you create personnel files, it’s important to have an organized and consistent system for maintaining those files. For example, you’ll need to limit who can access the files to just supervisors of the employee. States also have various rules for how much access employers must give employees to their personnel files, if requested.

Before you hire, it’s essential to thoroughly review all the required steps you need to ensure you’re not exposing yourself to legal problems. The payroll provider you choose to go with may be able to help you with several of the steps, depending on the level of service you choose.

Once you get the right processes and procedures in place, adding new employees should be much easier and faster. It’s just getting set up in the first place that takes time.

What Employers Must Know About Hiring Employees With a Criminal History

Hiring a convicted felon isn’t what most businesses set out to do. In fact, most companies would prefer to hire people who will be soon nominated for sainthood, which leaves candidates with a criminal record out. Employers need to keep in mind, though, that many saints have checkered pasts and so may some of your best employees. Here’s what you need to know about hiring employees with a criminal history.

What Is Ban the Box?

Most job applications have a box that applicants check off to say whether or not they have any felony or misdemeanor convictions. But, 25 states and several cities have passed “ban-the-box” laws. Some additional states have “fair chance” legislation, which means that you can’t ask the applicant about convictions on a job application.

Individual state laws vary, so double check your state or other governmental jurisdiction’s laws before you ask a person to fill out an application. As a general rule, ban the box means that you can’t ask about any convictions until you get to the job offer stage of the selection process.

The Purpose of Ban-the-Box Laws

What’s the purpose behind these laws? The state has a vested interest in getting people with a criminal history working—having a job reduces the chance of recidivism. If you want to lower crime, you want people working instead of returning to their bad ways.

But the other reason for ban-the-box laws is to stop discrimination against black men. However, research has shown that this may not be working as desired—since employers can’t ask about criminal history, they are less likely to interview black and Hispanic candidates.

Researchers looked at low-skilled men between the ages of 25 to 34 and determined that “in ban-the-box areas…   employers are less likely to interview young, low-skilled black men because those groups are more likely to include ex-offenders. They instead focus on hiring groups made up of men they believe are less likely to have gone to prison.”

So, while the laws may help actual convicts, they can adversely affect low-skilled black men who have no criminal history.

When Can You Ask About a Person’s Criminal History?

In all states, you can ask about felony convictions before you actually hire an employee. The ban-the-box legislation just prevents you from asking about criminal history before you’re ready to make an offer. When you’re ready to make an offer you can do a background check which involves asking about any convictions.

Can You Reject an Applicant Because of a Criminal History?

The answer to this question is sometimes. Some convictions prevent you from having certain types of jobs altogether. For instance, if you run a daycare, you absolutely can and must reject convicted child sexual abusers. That’s an easy decision. In other areas, the decision is not so cut and dried.

Rejecting people based on their criminal history may violate the Civil Rights Act of 1964’s Title VII. The Equal Employment Opportunity Commission says that there are two key points when considering how to treat convicted job candidates. They say:

  1. Title VII prohibits employers from treating people with similar criminal records differently because of their race, national origin, or another Title VII-protected characteristic (which includes color, sex, and religion).
  2. Title VII prohibits employers from using policies or practices that screen individuals based on criminal history information if:
    • They significantly disadvantage Title VII-protected individuals such as African Americans and Hispanics; AND
    • They do not help the employer accurately decide if the person is likely to be a responsible, reliable, or safe employee.

Ban-the-box legislation is an attempt to comply with the first part of this (although, it’s not working), but what about the second part? First, you can’t assume an arrest means a person committed a crime that would disqualify the person from the job.

If your candidate has a conviction, you can consider that they committed the crime of which they were convicted. If there is simply an arrest, you can use that to start an inquiry into whether or not the person should be disqualified.

How Do You Determine Whether to Hire a Candidate With a Criminal History?

But, how do you determine if the convicted person is “likely to be a responsible, reliable, or safe employee”? That’s going to vary based on state laws,  but here are some general guidelines.

  • Treat people of different races/genders the same. If you go ahead and hire a white man with a drug conviction because it was “just a youthful indiscretion” and then reject a black man with a similar conviction you’re violating the law.
  • How long has it been since the conviction? If the job candidate has a conviction for shoplifting from six months ago, you can make a strong argument that this is not a trustworthy individual. If that conviction occurred 20 years ago, however, and no repeat convictions have occurred—not so much.
  • How does the conviction relate to the job? You can reject a person who embezzled from a previous employer as your company’s comptroller, but probably not for a job as a landscaper with no access to funds.
  • Did you give the candidate a chance to explain himself? If a candidate has a conviction that you say disqualifies him for the position, the EEOC requires you to give the person a chance to “demonstrate that the exclusion should not be applied due to his particular circumstances.” This means that you’ll have to sit down and listen to what the candidate has to say and perhaps collect some additional information.

Always Consult With Your Attorney About Hiring Employees With a Criminal History

If you wish to reject a job candidate based on a conviction, before you do so, please consult with your employment law attorney. Because state and even local laws can vary considerably, you can’t make generalized judgments on what you think is best for your business. You need to ensure that you have followed the law precisely and that you aren’t violating Title VII in any way.

Many companies skip consulting with their attorney because that discussion costs money. But, it’s considerably cheaper to pay for an initial consultation than to have to pay for the resulting lawsuit. Remember, even lawsuits that you win are incredibly expensive to litigate.

For jobs with state licensing, use the licensing procedures as your guidelines. If the licensing agency allows the person to have a license with that particular conviction, you should most likely (consult with your attorney) not consider rejecting the candidate because of that conviction either.

When trying to decide how you want to shape your policy regarding convicted felons, consider the true nature of your business. Does your business require actual saints or are normal humans enough?

Disclaimer: Please note that the information provided, while authoritative, is not guaranteed for accuracy and legality. The site is read by a world-wide audience and employment laws and regulations vary from state to state and country to country. Please seek legal assistance, or assistance from State, Federal, or International governmental resources, to make certain your legal interpretation and decisions are correct for your location. This information is for guidance, ideas, and assistance.­­

HR Management Trends Continue

Business trends come and go, but they impact our daily work lives. When it comes to HR management, evolving technology and a shift in workforce needs will continue to shape the trends. 

As small business seek ways to operate more effectively, let’s examine four of the key trends the human capital management experts say will continue.

1. Flexible work schedules on the rise

“Flexible work arrangements” is a term you’ll continue to hear. One reason: Millennials now make up the largest generational share of the workforce, and work-life flexibility is a priority for this demographic.

More than half — 52% — of HR professionals say their companies currently offer flexible work arrangements to at least some employees, according to a Society for Human Resource Management (SHRM) survey. Even more interesting, SHRM members reported that retention improved when companies simply announced they were launching flexible work arrangements — that’s how much workers want this.

Some experts predict that employers who offer flexible work schedules will see gains in recruitment and morale, as well as a reduction in turnover.

Of course, not all companies are in a position to offer flexible work schedules. But for companies managing aggressive recruiting and retention goals, it’s certainly food for thought.

2. A growing remote workforce

Eighty to ninety percent of the American workforce would like to work remotely at least part time, according to a study by Global Workplace Analytics. No wonder telecommuting has increased by 115% in the last decade!

Employees who telecommute report higher morale, lower absenteeism and greater willingness to work overtime. It’s good for the environment, too — no commuting.

And contrary to what you might think, multiple studies indicate that remote workers demonstrate greater productivity, while saving employers on office space. (For example, American Express reports saving $10 to $15 million per year in real estate costs because of its telecommuting program.)

However, many executives remain uncomfortable with the idea, and not all jobs or industries lend themselves to telecommuting. But the demand isn’t likely to go away. If talent acquisition is key to your company’s growth strategy, offering a remote work option — even part-time — could be a smart move.

3. Social recruiting on the move 

Eighty-five percent of companies use social media as a recruiting vehicle. It’s so pervasive, it even has its own name now: social recruiting. While LinkedIn, Twitter and Facebook remain the big three, where will it go from here?

We will see more companies leverage mobile recruiting platforms. According to Pew Research Center, 28% of all Americans (and 53% of 18 to 29-year-olds) use their smartphones for job hunting. Half of them have completed a job application using their phones. If your company’s hiring platform isn’t mobile friendly, you’re missing out.

In addition, employers may be turning to professional/association social networking sites to recruit this year. It’s a more targeted way to hone in on experienced applicants and reach passive job candidates. Why not give it a try?

4. Using technology for HR program management

We continue to see vast advances in HR technology in every area, from time and attendance systems and benefits administration to recruiting and performance management programs.

According to Sierra-Cedar’s 2017-2018 HR Systems Survey, 50% of companies have purchased a cloud-based HR application. The migration to the cloud continues.

In addition, you can expect to hear about:

  • The adoption of continuous performance management systems. For years, employers have been moving away from an annual review process and toward an ongoing performance management process. Look for human capital management systems that actively support such year-round activities.
  • Using granular analytics to refine HR processes. While companies have been demanding HR analytics for a while, many organizations are still figuring out how to best put them to use. From recruiting metrics that allow employers to shorten the hiring process to time and attendance data that pinpoints field management issues, employers will dig in to HR analytics in increasingly meaningful ways.
  • Increased use of mobile time tracking apps. According to the Sierra-Cedar study, there’s been a 50% increase in mobile time tracking over last year. This tracks with the other trends discussed above. Employees are using their phone for more job-related activities. Employers are becoming more flexible in terms of where and when employees work. It only makes sense that HR systems like time and attendance software are able to follow along.
Did you know that 85% of resumes contain lies?

It’s not surprising some job applicants feel the need to embellish their resumes to get a better shot at a job. But the exact number — now 85% — has risen dramatically over the past few years. 

Resume lies have become so common that a lot of dishonest applicants are going undetected. Whether this is due to increasing pressure to fill positions quickly or trusting HR pros, a survey by SimplyHired discovered that 46% of hiring managers fail to check references, and 65% don’t verify a candidate’s education.

Even more shockingly, 16% of those surveyed don’t have time to read the whole resume, and 34% just skim over the cover letter.

This means there’s a pretty good chance a lot of applicants have gotten away with a lie, so they’re going to keep trying.

Why candidates really lie

While any lie seems devious, it’s a misconception that every resume exaggerator is trying to con their way into a job they aren’t qualified for. Some candidates are resorting to fudging the truth out of frustration, and not necessarily intentional deception.

More and more applicants are aware that companies use screening software to automatically eliminate resumes that don’t contain certain keywords or don’t meet minimum requirements. This often results in candidates never hearing back about a position and not getting a real shot at a job.

To prevent themselves from being weeded out right from the get-go, candidates will tweak their resumes to better fit a position by including as many keywords or requirements as they can.

Tammy Cohen, founder of InfoMart, a company that specializes in screening job candidates, thinks some companies’ job descriptions can be the cause of applicants’ embellishments. Unsurprisingly, job postings are often written in a creative, eye-catching way to attract more applicants. To match this style, candidates often jazz up their own resumes to appear to be a good fit for the position.

While small exaggerations can be relatively harmless, some candidates blatantly lie about crucial aspects of the resume.

Here are the top things job seekers lie about, according to a survey by OfficeTeam:

  • job experience (76%)
  • job duties (55%)
  • education (33%), and
  • employment dates (26%).

What to look for

Obviously, big lies in these areas are ones HR pros definitely want to catch. And OfficeTeam has compiled a list of several red flags that can be indicators of dishonesty, along with how hiring managers can find out the truth.

  1. Their skills have vague descriptions. When a candidate is trying to stretch out their list of skills, they may start listing items with phrases like “familiar with” or “involved with.” If someone is “familiar with HTML,” that could mean they took one class in high school and can barely remember anything. If a candidate was “involved with compiling sales reports,” they very well could’ve watched as others on their team did the heavy lifting. Also, watch out for any duties or titles that don’t really make sense — does it seem like a candidate is using more creative words to describe simple tasks?
    The Fix: To make sure candidates have the concrete skills they claim, skills tests can be used as part of the hiring process. To get an even better idea if their skills are up to snuff, you can give the candidate a job audition or hire them on a temporary basis.
  2. Their employment dates are questionable or missing. When a candidate has previous job dates listed by the year instead of month, it can be an attempt to lengthen stints and hide periods of unemployment.
    The Fix: Directly asking candidates what the months of their employment were can help clear this up if they answer truthfully. This can also give them a chance to explain any long gaps in their resumes, too. But if you still sense an applicant isn’t being honest with you, calling references to confirm employment dates is crucial.
  3. Their body language is off during the interview. If a candidate isn’t making eye contact or keeps fidgeting in their chair, this could be an indication of dishonesty. Be careful with this one, though. These could simply be signs of an anxious applicant, not an untruthful one.
    The Fix: If the person is particularly fidgety while discussing a certain part of their resume, keep asking about it. If they can’t seem to answer your questions, they probably exaggerated their skills or experience. It’s also a good idea to ask others who met the candidate if they felt anything was off about the person’s behavior.

A long-term fix

While these tips from OfficeTeam can help you catch resume fibs as you go, there may be something you can do to reduce the amount of candidates who feel the need to lie.

If you use screening software to eliminate applicants who don’t meet certain requirements, examine those keywords and criteria. Are they so essential to the position that anyone without them should be immediately out of the running? Ask yourself if it’s possible a good candidate could be missing a skill or two. If the answer is yes, change those settings.

And as time-consuming as it would be to screen applicants without software, consider it. Candidates would be much more willing to tell the truth from the beginning if they knew a computer wouldn’t automatically weed them out.

Not all lies are created equal

So once you’ve caught a candidate in a lie … what do you do?

Obviously, some resume fibs are more serious than others. It’s up to you to decide what to do.

We suggest focusing on what you really need out of the candidate. If they embellished on an unimportant aspect of the resume, but have the qualifications where it counts, it could be worth overlooking the lie.

Some lies should take the candidate out of the running immediately. Big things, like applicants lying about their education or positions they’ve had, clearly show they’re not trustworthy.

4 Hiring Challenges Facing Small Business Owners

Hiring professional talent in today’s market can be extremely difficult. Find out why it can be so tough for companies, while also learning how to deal with the stress of finding the right candidates.

For many small business owners, the last few years have been the best of times. As the economy has grown, their businesses have grown. New clients have appeared, and existing clients have increased orders. Growth is exciting.

As companies grow, however, they often need to hire new people for positions that did not previously exist. Suddenly, a function needs to be professionalized. Ten years ago a company could promote a warehouse worker to a shipping supervisor role, but after years of expansion, the business needs a supply chain manager to handle the more complex relationships that stem from a growing company. A decade ago, an office manager could double as a personnel manager at a 25-employee company. With 120 staff members today, that same firm needs at least a professional HR manager, if not a director.

Unless properly managed, these hiring projects could lead to the worst of times. For a business owner, hiring professional talent in today’s market can be problematic. Here are a few reasons why hiring can cause a headache for small businesses, and how to help your business stand out in the hiring process.

It’s a tight market

With a 4 percent unemployment rate, there is a limited pool of unemployed job candidates. Your ideal hire might be working somewhere else and needs a reason to quit their job and work for you. When a promising talent is not looking for work, they need to be identified and attracted to your company.

Employers have built stronger cultures

Since the last recession, most companies, large and small, have improved their culture and business. In 2008, a candidate might have been eager to escape a horrible boss or bad culture. Thankfully, there are fewer of both now, but relying on another company to be worse than yours is a bad strategy.

The skills you want reside in larger firms

In the past, small companies could attract talent from larger firms by emphasizing work flexibility and a family atmosphere. Over the years, most large companies have invested a fortune in work-life balance alternatives, as well as other bells and whistles. Don’t expect a candidate to take a pay cut to work at a smaller firm just because you won’t make them use a vacation day for a child’s doctor visit. Realistically, is that worth $10,000 less in salary and a cut in a 401(k) match?

Candidates have options

The traditional mindset is that a candidate applies for a job – basically asking an employer to consider them. In reality, the balance of power has now shifted. Employers ask the candidate to join them. Many small companies let their egos get in the way of this newfound practice. They think the candidate needs to show they want the job and make some type of sacrifice. This is a self-defeating philosophy, especially when a candidate is considering multiple employers. The choice is not between a candidate’s existing employer and your company. It is between the existing employer and any of two, three or five companies that will appear over the next few months. In a good economy, everyone grows. Other companies have grown and need the same skilled candidates as you.

The solution

The first thing you need to do is create a clear message for attracting talented candidates. If your team can’t answer the question, “Why should I quit my job and work for you?” then you need to revisit your message and, potentially, your team members. The answer can’t be “because we are nice people.” It needs to be a clearly defined message.

The second step is determining the type of person you want to hire. Attributes like experience level, current job and the type of company or industry someone is currently working in should all be analyzed and considered. Select and define the factors most important to your business. Identify your market, and then figure out a way to get that message to your market. Ads, recruitment firms and aggressive referral programs are all useful tools.

Lastly, have an employment process that is candidate friendly. Don’t make a candidate leave work in the middle of the day for a half-hour screening interview. Don’t have an interviewer who thinks it is their job to ask questions but not answer them. Engage with the candidate. If you don’t do that with them now, they will project that behavior onto themselves as a potential employee and stop the hiring process before it ever really gets started.

How to Create a Talent Management Process

If you want to get the best out of your employees and attract new talent, you must implement an efficient talent management process.

Employees are the most important part of an organization, offering passion, personality, hard work and unique assets from all angles. This is the mentality you should have when developing your team – and your talent management process.

Some employers act on the notion that workers can be replaced, viewing them not as humans but as machines that simply get the job done. Instead, you should recognize and build on superior talent within your organization, focusing on their personal strengths and interests, and how they fit into your business.

Such a strategy is known as a talent management process, which seeks to recruit, develop and retain top talent.

Today’s employees want to know that they have been selected for positions because they have the ability to succeed in those positions and that the organization is going to continue to develop them into top performers. They are looking for companies with strong talent management systems that will recognize their individual efforts, reward their performance, and give them opportunities for growth and development.

Your talent management process exists to support your employees without trying to change them. It’s a crucial addition to every business. To get the best out of your employees and continue to attract new talent, you’ll want to implement an efficient talent management process. Here’s how.

Creating a talent management process

The first step is to ensure that there are channels and pathways for expectation setting, training, two-way feedback, and coaching to enable a continuous cycle of talent management and performance.

Transparency is key. Employees search for more than monetary rewards and a glamorous office. Sure, those incentives are attractive and beneficial, but workers want to know that they share the vision and values of their potential company. That’s why it’s crucial to identify your organization’s mission from the get-go.

The organization must have a solid idea of what they are about, what they want to accomplish and who they want to be as they journey there. This may take the form of a mission statement, organization goal and/or a list of no-compromise values.

Given how tight the labor market is today, it’s critical that you’re able to differentiate the experience your company or team will provide for a potential candidate and, eventually, employee. Part of how this is accomplished is by sharing company values and telling their story – things that must be proved out once someone is hired. It can’t just be lip service.

Your vision and values as a company will influence every part of your talent management process, from recruitment and hiring to retention and employee development. For instance, an applicant might be a talented individual with tons of experience, but if their objectives don’t match yours, they won’t serve your organization the way you need. Or, if a current employee isn’t progressing in a way that suits your mission, you’ll better know how to approach the issue for both parties.

Areas of focus

There are many issues to address in your talent management process:

  • Organizational and job design: Which skills, abilities and performance are needed to meet goals and objectives?
  • Workforce planning: What is your strategy or plan for developing teams with the necessary skills and capabilities? Which skills are critical to hire, and which can be built through training and coaching?
  • Talent acquisition: How will you source, screen and hire talent with the right skills, abilities and characteristics?
  • Onboarding and orientation: What are your pre-arrival and arrival logistics? What will your new-hire orientation entail? How will you ensure effective expectation setting, team integration, and cultural alignment and assimilation?
  • Learning and development: How will you customize training for each worker in line with company goals and objectives? How will you integrate this development into day-to-day performance, management, feedback and coaching?
  • Performance management: How will you provide continuous opportunities for performance review, appraisal, feedback and planning? How will you ensure clarity of expectations and nurture a culture of coaching and performance?
  • Leadership development: How will you review employee performance and potential? How will you develop and prepare individuals for possible leadership roles?
  • Employee engagement: How will you continuously gauge employee engagement levels? How will you align their work with the company’s vision, objectives, beliefs, roles and values?

As a small business looking to make initial inroads around effective talent management, it is important to focus on the components and levers that are most impactful for your team or organization.

 

Your HR Partner

Contact Us

Social

Newsletter

Enter your email address here always to be updated. We promise not to spam!