Many times we think the hard part is finding the perfect new hire to join our team and fill that open position, but really, the work starts once that person is identified. What do you do then? What SHOULD you do then?
- Draft a formal offer letter.
You’ve likely already made a verbal offer to your candidate and discussed job title, job duties, salary, benefits, other compensation, and start date. That discussion should be formalized in an offer letter that both the employer and new employee sign. There are many templates and examples that can be customized for your organization’s specific needs.
- Consider a formal employment agreement that includes confidentiality and non-disclosure clauses.
You’re bringing this new person into your organization because you believe that he or she can make valuable contributions to your success. No business owner wants to believe that an employee could potentially damage that success. For roles with access to confidential and/or proprietary information, it’s strongly recommended to have an employment agreement that stresses confidentiality of employee, company, and client data along with non-disclosure language preventing employees from releasing that confidential or proprietary information.
- Consider running a background check, with the employee’s authorization.
Background checks are more commonplace today, though there are very specific guidelines that dictate what can and cannot be obtained and what potentially negative results must be revealed to an applicant. We’ll get into this deeper in a future blog, but the best practice is to let the applicant know that a background check will be performed and get their written authorization to do so. Use an agency that specializes in background checks and the associated regulations; they should also be able to customize the check specific to your organization’s industry and needs and the employee’s job function.
- Deliver all necessary new hire paperwork that should be completed prior to the employee’s first day.
New hire paperwork hasn’t changed much over the years, though there have been improvements to the process. We used to have paper copies printed and handed to an employee on day one, and it would take them significant time completing everything by hand. Today, everything can be delivered electronically and completed digitally, especially if your organization is using a consolidated Human Resources Information System (HRIS) that allows for paperless onboarding. (We’ll get into that in a future blog!) In a perfect world, this info would be returned prior to day one so the employee’s set up is complete before he/she arrives on the first day.
- New hire paperwork should include the most up to date version of the following forms:
a. Federal I-9 for employment eligibility
b. Federal W4 for federal income tax
c. State Income Tax form for those state with income tax requirements
-Some cities / counties have local taxes that must be accounted for on that state form.
-Be sure that the form is completed in full for all appropriate tax types.
d. Direct Deposit Form to electronically deliver net wages and eliminate paper checks
e. Benefits Enrollment Forms specific to your organization’s available benefits
SmartBooks can help streamline your new hire process and ensure compliance and proper completion of all forms. If this is an area you struggle with, we’d love to help!