What's the first thing you should consider when hiring employees for your small business?
Your hiring options, that's what! There are three main types of employees: interns, freelancers/independent contractors (these are often vendors or paid via 1099, so they're not technically employees, but team members), and W2 employees.
Luckily, I've written multiple articles about hiring employees for your small business. In this article, you'll see a brief overview of 3 main options for hiring employees and how they can fit in your plans for business growth.
Interns
Ahh, the wonderful idea of getting a sharp, motivated college kid to do the work you don’t want to do, for little or no pay at all… It sounds dreamy, right? Alas, as in most areas of life, you get what you pay for as well as what you put into it. This can be a great option if you're a seasoned manager who has clear systems and processes and are willing to spend the time and energy needed to set an intern up to succeed.
The reality is – most entrepreneurs aren’t clear enough on what they need to have done, and how to train someone to do it for internships to be successful.
Freelancer / Independent Contractor
Freelancers and Independent contractors are changing the face of employment. These individuals are usually experienced and ready to go. Some of them have a full-time job and do this on the side, and others treat this as their job or business.
I use freelancers for a large number of my projects and ongoing support. I have found that the ability to ramp up and wind down based on my business needs helps me run a lean and profitable business. This is a powerful opportunity for leaders that are looking for high performers at a price they can afford when considering hiring options for their small business.
W2 Employees (The Traditional Hiring Option For Small Businesses)
This is the traditional employer/employee relationship. When you make the leap to employer, you’re taking on a variety of responsibilities including a lot of paperwork. One of those is getting a completed W4 to new employees. The W4 is the employer side of the W2 employees get for taxes at the end of each year.
Becoming the Employer of Record is not something that should be taken on lightly. It involves a tremendous amount of paperwork and configuration.
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