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How to choose an employee for your home business

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Choosing the right person for your home business is an important decision. Here are the qualities to look for in a potential employee to help you choose the right person.

How to choose an employee for your home business

As an owner of a home office, you may find that hiring an employee is a daunting task. The search is almost like finding a perfect roommate, making it all the more important to recruit and hire the right person for the job.

Find and hire the right employee using these tips.

Know what you are getting yourself into 

Preparation is crucial when it comes to hiring a new employee. Decide whether you will hire full-time employees, part-time employees, or independent contractors. Having employees in your company means you will need to deal with the payroll and benefits. In this case, you will have to decide whether you will handle these functions in-house or outsource them.

Ask for references 

You should ask around for referrals before you place a help-wanted advertisement. Consult former coworkers and friends to find trustworthy, hardworking individuals. Aside from local universities and community colleges, you may also search for and recruit employees at business associations and trade associations.

Do your research first 

Learn about employment laws in your state and zoning laws in your town before you hire anyone for your home business. You should also get in touch with and find employment tribunal support. Make sure you are allowed to have employees in your home.  It might change the use of your home to business in some parts.

Define a compensation package

Calculate the salary and the benefits you can offer the employee in order to determine what your budget allows. In a tight budget situation, think outside the box for ways to reduce costs. It is important for employers to be able to offer their prospective employees flexible working hours and to allow them to telecommute if necessary.

Conduct interviews 

Please do not hesitate to ask the candidate as many questions as you can. Ask your references to submit a reference letter and even ask them to complete an application along with your resume. During the interview, you should have someone else present as well. This will allow you to not only get someone else's opinion about the candidate but also get both yours as well. Try to create scenario questions and questions that pertain to the specific job a prospective employee is applying for, in order to test how they will respond to typical situations. Identify how comfortable they are with the idea of working in an office surrounded by family members and even pets.

Cover your assets and set boundaries

As well as having worker's compensation coverage, make sure your business insurance policy also covers liability coverage, if that is a risk that you are exposed to. It would be a good idea to consult your insurance agent or broker prior to hiring anyone.

If your employee works from home, make sure you communicate your expectations. Describe which rooms are available to them and what hours the business is open. Despite being at your house, it's important you specify that they are there to assist you with your business.

Prepare a manual for employees

Employees will immediately see that your management duties are serious. Policies on sick time, phone usage, and performance expectations should be included in your handbook. Additionally, positions should be described, office rules, and procedures for reporting absences or requesting vacation time should be included.