The process of hiring a new employee might be different from organization to organization. Some of the most common hiring processes includes:
Identifying the need for hiring new employees
Preparing job description
Advertising vacancy in different platforms
Reviewing application and selecting a pool of qualified candidates
Assessment test and In-person interview
Job offers and Onboarding
When should I hire a new employee?
Hiring new employees requires careful planning. Inappropriate hiring might cost an increased expenditure and unnecessary burden to the organization. So before hiring any new employees you should consider these things:
Is there any new source of potential revenue streams that the current workforce is unable to handle?
Is your company financially stable to handle the cost incurred for new hiring?
Is your revenue growing over time, if so, you need to take the extra mile to increase your workforce in order to continue the pace of growth?
Is your employee being pressured with overtime and overworked?
What paperwork is required for a new employee?
Once the recruitment process is over, an employee is offered a Job Offer letter. After signing and agreeing to the terms and conditions mentioned in a job offer letter then a valid employment contract is given to the employees for final onboarding.
Why is an employment contract important?
An Employment Contract is a contract signed by both parties.ie; employee and the employer. It binds both parties to their duties and responsibilities and thus helps in minimizing disputes between an employee and employer in the future. Here are 3 basic reasons why it is important for both parties.
Job security for the employee and labor certainty for the employer
This is the most important purpose of an Employment Contract. An Employment Contract includes the time frame of how long an employee is contracted to stay with the company.
This ensures the job guarantee for employees whereas employers can be positive about staff dropping off jobs, as long as they do not violate the terms of the contract.
Another purpose of an Employment Contract is dispute resolution. A good Employment Contract reduces the disputes between two parties and minimizes the time and expense of a courtroom battle.
A better understanding of duties
An Employment Contract has a clear description of the duties of the employee. If an employee is consistently underperforming and not meeting the agreement set out in their contract, their employer will have reason to take action
Employers also have a responsibility to pay their employees, facilitated with different incentives, bonuses, or benefits. The pay rates, income, benefits, and bonus should be clearly mentioned in the contract and employers should follow accordingly.
How long does it take to hire a new employee?
It might take anywhere between a week to a month but that totally depends upon the business structure. If you have a large business, it might take a long time because the hiring process has to go through a lot of channels and departments. In case of small businesses and startups, the hiring process comparatively takes less time.
How much does it cost a company to hire a new employee?
It is very difficult to have an exact figure for the cost incurred in hiring a new employee. While hiring a new employee a company has to go through the training process, benefits, and remuneration. The actual cost may vary according to the nature of the company.
According to Glassdoor, the average company in the United States spends around $4000 to hire a new employee.
What to look for in hiring a new employee?
One of the main reasons for hiring a new employee is to improve the overall productivity and efficiency of an organization. These are the important traits that should be considered before hiring.
Posses required skills and open to learning a new one