The Step-by-Step Startup Recruiting Process
When recruiting for your startup, where do you start, and what tools do you use? The startup staffing and recruiting experts at USA Staffing Services have created this step-by-step recruiting guide for you.
1. Hire from the top
Fill in executive roles first and work your way down, resources permitting. These are the initial roles to fill:
- Chief Executive Officer (CEO) and Chief Operations Officer (COO)
- Product Manager
- Business Development Manager
- Sales Manager
- Customer Service Representative
An organizational chart is a handy tool you can use. Create it from the top down, listing job titles and responsibilities. Keep a long-term view - the chart should be relevant two years down the line and assist with proactive hiring.
You can outsource accounting, payroll, and most admin duties to a third party. It's best to partner with someone who can also provide startup staffing and recruiting experts to support you when you need to expand your team.
2. Create a comprehensive compensation and benefits package
Determine the compensation and benefits to offer, keeping in mind your budget and expected revenue. Consider direct and indirect compensation in your calculations. Direct compensation includes salary, hourly pay (in case of nonexempt employees), commission, and bonus pay. Indirect compensation includes vacation days or paid time off (PTO), child care expenses, relocation benefits, and company equipment, among others.
Explore ways to optimize labor costs. You could, for example, offer voluntary benefits that employees can opt in to and share in the cost via payroll deductions.
Your compensation policy should align with your policies for paid holidays, payroll administration, and healthcare benefits. Get buy-in from other leaders, and communicate your compensation plan to employees at the same time. Make time to answer their questions and ensure that everyone understands their compensation package.
3. Brush up on your legal requirements for hiring employees
A broad understanding of local and federal employment laws will help you create compliant hiring processes. Think about the risks of falling foul of laws and solve for them.
For example, job discrimination laws make it illegal for an employer to discriminate against a job applicant on the basis of race, color, religion, or sex. The repercussions of disregarding prohibited employment practices are grave, ranging from various damages (e.g. emotional distress, and lost wages and benefits) and statutory fees and penalties to investigations by state or federal anti-discriminatory agencies, and reputation loss.
Employment practices liability insurance (EPLI) can provide financial protection against discrimination, wrongful termination, workplace harassment, and other claims. For startups, it's just as important as general liability, directors and officers liability, and property insurance.
4. Create your hiring process
A startup hiring process consists of these steps:
a. Create a list of roles you need to fill
b. Craft job descriptions
c. Advertise jobs on job boards and social media sites. Alternatively, use startup staffing and recruiting experts to source talent
d. Review and screen candidates
e. Conduct interviews
f. Check references
g. Make an offer
h. Onboard new hires
5. Nurture a positive company culture
You've worked hard and spent money on building your first team. Keeping them satisfied should be a priority to encourage the highest levels of performance and gain a solid footing in your industry.
A great working environment is essential to retain employees. Effective startup leadership also has a bearing on employee morale and tenure. Managers should build a performance-driven culture while showcasing empathy and a genuine concern for employees' well-being.
An employee incentive program will also go a long way in boosting enthusiasm and healthy competition in the workplace. Explore more ways to keep employees happy and convert them into brand advocates.
Contact USA Staffing Services
We're startup staffing and recruiting experts who can step in when you're ready to grow your team. We're also a back office partner for startups, taking on payroll responsibilities and managing employee risk on clients' behalf. Contact us to understand the breadth of our services and the value we deliver.