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Getting the Best For Your Bucks

Author: Paul Cantelli

Hiring on a shoestring budget can be challenging, especially if you want to get the best talent available. While you may not have the cash to recruit based on a high salary alone, you can still attract top talent if you play your cards right.

Use the following tips to get qualified applicants when hiring on a shoestring budget:

• Learn how to hire the right people. Hiring the wrong person can be very expensive, both financially and in terms of time lost. Create a clear job description with detailed criteria for the type of employee you are looking for so you can better select the candidate that will best match the job and the company culture. Be patient through the hiring process and only hire the person who you truly believe is the right fit for the job.
• Keep the hiring process inexpensive. While it's important to cast a wide net, multiple job postings can get expensive. Ask your employees if they have any referrals and consider offering them a bonus if you hire a person they recommended. Use free websites, social media and industry contacts to spread the word about your vacancies. The more you can save on posting a position, the more you can pay your new employee.
• Focus on the intangible perks. If you can't offer a big salary, perhaps you can offer other meaningful incentives. Allow employees to work on flex time or to telecommute on some days. Keep the office kitchen fully stocked or offer discounts at a local gym. Small investments that benefit all employees are as important as payroll.
• Offer profit sharing or other future incentives. If you are a start-up or small business that expects to grow, offer shares in the company as partial compensation, bonuses based on profits or other incentives that will help motivate and attract top talent.

How to Maximize the Hiring Process

Author: Evelyn Keaton

If you need to find good employee candidates without going through the time-consuming and expensive process of using traditional career ads or paying the exorbitant fees that many recruiters and headhunters charge, follow a simple rule: Go with what you know. Hiring on a shoestring is much easier when you are able to get targeted candidate leads from people that you trust and that understand your business. Here are three techniques that can help you:

• Talk to your network. People in your professional network, whether they are business associates, vendors or clients all know people that are looking for positions. By talking to the people that you know and trust you can get real-world recommendations that you can count on. Many of them can also bring you passive candidates that may not respond to one of your ads.

• Work your online network. Between Facebook, Twitter, LinkedIn and other networking sites, you should have no problem finding great candidates that you either already know or that people you know can vouch for. While many sites offer paid job ads, doing things like updating your status to let the world know that you are looking and reaching out to people in your network that are looking for a job are extremely effective ways of hiring on a shoestring.

• Reach out to your educational network. While you can always start with the college of which you are an alumnus or alumna, consider also reaching out to schools that you accept. If you are looking for entry-level workers,  most schools will let you post a job ad in their career services office for free. If you are hiring on a shoestring for a more senior position, reach out to the alumni office since many schools now help their alumni find jobs as well as helping new graduates.

The professional staff at The Tax Office, Inc. has worked with many small businesses that have hired people on a shoestring budget. They can share tips with you, as well as help you prepare to bring a new employee on staff. Contact us to get started.

Who is More Cost Effective? The Contractor or Employee?

Author: Evelyn Keaton

Hiring on a shoestring budget means you have to make smart decisions about who you hire, how much you pay them and what type of worker they are. Contractor and employees have different costs associated with them, and it's important to know the difference before you make a decision.

Financial benefits of hiring a contractor

Contractors typically must supply their own equipment, which means you don't have to invest as much in computers, phones and other office supplies. Because they are not employees, your worker's compensation does not increase when you hire a contractor. Contractors are also responsible for their own income taxes and benefits, saving you on payroll taxes, unemployment insurance, medical benefits and retirement programs. You also have more flexibility to hire and fire a contractor; if the work runs out, it's much easier for you to complete the contract and end your financial obligation.

Financial benefits of hiring an employee

Because contractors supply their own equipment, provide their own benefits and pay a higher self-employment tax rate, their pay rates tend to be higher. You can often hire an employee at a lower hourly wage or annual salary, but you have to factor in all the other associated costs to make a fair comparison. You also have more control when you hire an employee because you can more directly supervise them and influence how they spend their working time.

If you're hiring on a shoestring budget and you decide that a contractor is the most cost-effective way to supplement your staff, make sure you follow all state and federal employment regulations. If you mistakenly classify a contractor, you could be subject to tax penalties later if it's determined that they were actually an employee. If this happens, you'll be liable for unpaid taxes and fines.

If you're hiring on a shoestring budget and need advice from an expert, contact The Tax Office, Inc. We can help you evaluate the costs of hiring an employee versus a contractor so you can make a smart financial decision for your business. Contact us today to schedule a consultation.

Traditional Hiring Practices May Not Generate Ideal Workforce

Author: Evelyn Keaton

Traditional recruiting takes a skills-based path toward filling positions. The candidate that could ace the computer test, define the right words or operate specialized machinery automatically earned points. In a technology-based world where many can perform most basic computer skills, organizations are finding that traditional hiring practices are not the best way to filter though candidates.

Many business experts recommend gearing hiring practices toward attitude. In a pool of candidates with equal skill sets, those with the best attitude will be more likely to perform well in the long run. How do you quantify something as ethereal as a "good attitude"?

Social Media In Hiring

Recent controversial news stories about employers requiring Facebook passwords aside, a quick social media search is a great way to get a feel for candidates. Sites geared toward professional networking like LinkedIn allow employers to see what a person is capable of and browse historical activity. Reviewing this information can answer questions about an applicant's long-term interest, sustainability and overall level of professionalism.

Broaden the Interview Dynamic

Someone who truly understands their industry should be able to determine whether a candidate can perform a job with a few questions. After that, broaden the scope of the interview. Instead of asking what the candidate can do, ask questions about the applicant's views and understanding of work relationship dynamics, the industry as a whole and specific job duties. By opening the discussion to topics and questions that are not included in every book on acing interviews, you can prompt the applicant to answer freely and personally. This gives you a window to their true attitude and helps you determine if they will be a long-term fit for your team.

Hiring Contractors

When outsourcing work, choose a company that can deliver necessary services but will also fit well with your values and dynamic. Check out their webpage and social media to get a feel for their practices and approach to business.

For an accounting team with a great attitude, contact The Tax Office, Inc. today. We offer a range of cloud-based accounting services to meet your financial needs.