BUSINESS COMMENT
12 • May 2021
Coast River Business Journal
Stronger economy = adding staff ?
Decision checklist
By Kevin Leahy
Executive Director
Clatsop Economic Development Resources
Most small businesses start with one employee —
the owner. At some point, though, you will need to hire
additional people to assist you. Usually this point comes
when you begin to lose business simply because you
can’t keep up, or you are burning the candle at both ends,
or both!
With the economy coming back from the pandemic
in our region and the diffi culty in recruiting and retaining
strong talent, make sure you do your homework and due
diligence before hiring.
The right employees can be tremendous assets in
helping you achieve your goals; if managed and moti-
vated correctly, they can take your business far beyond
where you could take it by yourself. Good employees
can take over much of the responsibility for running the
business, leaving you free to pursue new income-pro-
ducing strategies or to take a much-needed vacation.
Whether it’s a counter clerk or a manager, adding
an employee adds a whole new dimension and level of
challenge to owning a small business. You will want to
consider some important issues before you make the
decision to hire.
Decision to add an employee
Here are some critical questions to help you deter-
mine whether your business is ready for its fi rst or next
employee.
Do you really need additional employees? Before
CLATSOP ECONOMIC
DEVELOPMET RESOURCES
ANNUAL BUSINESS AWARDS
CLATSOP COUNTY’S
OUTSTANDING BUSINESSES
MAY 20, 2021 - 5:30-6:30 PM
The Board of Directors and Staff of Clatsop
Economic Development Resources invites you to
attend the CEDR Awards event which will be held
virtually via ZOOM this year.
Help us honor leaders who stood above the
crowd within their individual business or were
visionary in supporting the business community
in actions and deeds. This is the only county-wide
business recognition event.
To RSVP: www.clatsopcc.edu/cedr
Pre-registration is required. The event will be at
no charge, thanks to our generous sponsors.
Questions? Email cedr@clatsopcc.edu or call 503-338-2402
The hiring process
you bring people on board, make sure that
you have specifi c job descriptions for them
Whether you decide to hire an
and can identify their key responsibilities.
employee or independent contrac-
Don’t hire someone with only the vague
tor, there are fi ve steps to the hiring
sense that you can use the help or would
process.
like the company, especially in this very
• Writing the job description
competitive job market.
• Publicizing the job opening
Do you have the skills to manage the
• Screening candidates
work of others? When you hire employ-
• Conducting interviews
ees you assume responsibility for supervis-
• Making the off er
Kevin Leahy
ing their work and encouraging and motivating
As an employer, you want to hire
them to achieve an expected standard of performance. and retain employees most qualifi ed for the positions
You will be both a manager and a coach and will want to within your company. To do this, you need to defi ne who
provide an environment that off ers employees the oppor- you are looking for and what’s expected of them once
tunity to grow professionally and fi nancially.
they are on board.
Are you ready for the fi nancial responsibility of
Each position within the company, including your
employees? When you add employees, you take on own, should have a job description that outlines respon-
signifi cant responsibility for other people’s fi nancial sibilities and duties and includes a list of the position’s
well-being. You will want to make sure that the business objectives with specifi c and measurable goals. Each
is on solid footing and will be able to pay the employees’ description should include reporting relationships. The
salaries and benefi ts for the foreseeable future.
job description provides you and the employee a clear
Are you willing to abide by regulations regard- road map for the expectations of the position, from the
ing employment practices? There are several fed- standpoint of both workload and expertise required to
eral and state laws regulating employment practices accomplish the job.
and labor relations. Many have severe penalties for
Job application forms (online or printed) for your
noncompliance.
company should be simple and focus on relevant
Do you have enough room and the right equip- employment history, including names of supervisors and
ment for employees? In order to be successful, your references you can contact. Provide space for the appli-
employees will need space and the proper equipment, cant to summarize career accomplishments.
including things such as offi ce furniture, telephones and
At the interview stage, you want to learn as much as
computers. Trying to share important equipment may possible about the person’s job skills, work ethic and per-
actually decrease total productivity rather than improve sonality. Ask specifi c questions that require more than a
it.
yes or no answer. The more dialogue, the more you learn
about the applicant. More information will help you to
Alternatives to hiring an employee
make an informed decision.
Independent contractors. Independent contractors
Always check references. Competent and friendly
are self-employed individuals who act as consultants to employees make a positive statement about your busi-
your business by contracting to handle certain responsi- ness to customers. An applicant who interviews well and
bilities or projects. Most independent contractors have an has a sterling resume may not be the ideal fi t for the job.
expertise in a particular area, such as accounting, mar- References will validate your impressions, and expand
keting or computer-systems management. They are paid on areas not covered in the interview. This is also a way
on an hourly, project or retainer basis and are completely to learn more about potential weaknesses as well. What
responsible for paying their own taxes and employee a reference says or does not say gives you clues as to
benefi ts.
the character and skill of your candidates. Take all of
If you plan to use independent contractors, you this information into account before you form your fi nal
need to be aware of the strict criteria used by the IRS opinion of a given candidate.
to distinguish between an independent contractor and an
In our Clatsop Community College Small Business
employee. This information is readily available by call- Development Center advising appointments, we fi nd
ing an accountant or the IRS.
too often not enough time and energy is spent in hiring,
Temporary agencies. Temporary agencies off er retaining and growing the right staff , and the results of
a wide array of talent, from clerical employees, ware- this are low morale, poor sales, high turnover, weak cus-
house and construction workers, to professionals such tomer service and customers that won’t come back into
as CPAs. Since you can obtain temporary employees on your business again.
short notice and dismiss them at will, an agency may be
Make the human resource function a top priority, and
an excellent solution when you require help immediately you will reap the rewards of a loyal staff , fun (but profes-
or need it only for brief periods of time— for example, sional!) work environment, increased sales and peace of
to assist with a seasonally heavy sales period. Although mind for you when you are not physically at your place
the cost per hour for a temporary employee is probably of business. The value of all that for you as the business
higher than what you would pay a traditional employee owner or manager is immeasurable.
for doing the same job, you don’t have to worry about
Kevin Leahy is the executive director of Clatsop Eco-
payroll or benefi ts; you simply pay the invoice submit- nomic Development Resources and Clatsop Community
ted by the agency.
College Small Business Development Center.