That’s because 74 percent of U.S. employees say their benefits are important part of their financial stability, and 69 percent say their benefit package is a critical element in their job satisfaction. Not surprisingly, job seekers say health insurance benefits are among the top factors they take into account when considering a job offer.

As a small businesses owner, you may not be able to match the high salaries and big-ticket perks that large corporations can use to entice talent, but you can put together an innovative, cost-effective small business employee benefits package that reflects your core values and makes sure your employees know how much you value them.

Getting Started: How to Develop Your Small Business Employee Benefits Plan

The first step to crafting a benefits program is to establish a budget. You can expect to invest 30 percent of salary per employee in each comprehensive benefits package you offer. The most expensive component of your benefits offerings will be healthcare insurance, which is also the benefit most valued by employees. Other highly valued benefits include retirement savings programs such as 401(k) plans and paid time off (PTO).

Think of your compensation package as a single, per-employee expense divided among the following categories:

• Direct compensation: Salary, PTO, bonuses, and commissions
• Mandatory indirect compensation: Social Security and Medicare taxes paid on your employees’ behalf
• Optional indirect compensation: Benefits and perks that aren’t required by law, 401(k) matching, or health insurance premiums

One of the best ways to establish or update your small business employee benefits plan is to ask your current employees what benefits they wish they had. Once you’ve determined what you’re offering, consider investing in an automated payroll and benefits platform, or even contracting with a professional employer organization (PEO) that provides comprehensive HR solutions.

Basic Benefits: What’s Required by Law

Some employee benefits, such as unpaid family leave, are required by law. Under the Affordable Care Act, for example, employers with more than 50 employees are required to provide healthcare insurance. Healthcare will likely be the most costly benefit you offer, so you may want to band together with other small businesses in an association like the National Federation of Independent Businesses to access discounted rates.

Also under federal law, hourly workers are entitled to a higher hourly rate for any work that surpasses 40 hours in a single week. However, state laws differ on exactly which categories of workers are considered hourly wage earners and which are salaried and therefore exempt.

The degree to which you are responsible for contributing to disability insurance and unemployment or offering PTO can also differ by state and municipality. Other benefits that may be mandated by your state include life insurance, short and long-term disability insurance, worker’s compensation, unemployment, COBRA (continued healthcare coverage for employees who have been let go), and paid family and disability leave.

Check with resources like the U.S. Small Business Administration or Department of Labor, as well as state and municipal labor agencies, to make sure your small business employee benefits package is in compliance with all applicable regulations.

Competitive Compensation: Benefits Employees Expect

Beyond what is required by law, there are certain benefits that applicants are likely to expect. Health insurance and pre-tax benefits, such as 401(k) and health and childcare savings plans, that help lower employees’ taxable income are popular across all sectors. In some fields benefits like remote work and flexible scheduling are popular.

As you assemble your small business employee benefits, keep in mind which benefits are expected within your industry. Do you want to match or surpass those offerings?

One way to create an enticing benefits package is to focus on emerging benefit trends that are popular among today’s job seekers, such as mental health and wellness, skills training, and the option to carry over unused PTO.

You can keep benefits robust while still balancing costs by offering your employees choices.

For example, your employees with young children will likely be overjoyed if you offer childcare assistance, but those without children might feel left out. Offer employees a certain amount of annual assistance they can use toward childcare, tuition loan assistance, or 401(k). This way, not only will you be making every employee, no matter their stage of life, feel valued, but you will also make them feel empowered by their ability to make the financial choices that make the most sense for them.

Values-Based Small Business Employee Benefits

A growing number of employers are offering benefits that reflect their core values. For example, if you’re a local business with strong ties to your community, you might offer your employees paid volunteer hours for work at a local charity. If health is a core value, then you might offer employees reimbursement for fitness club memberships and free onsite healthy snacks and meals.

One way to communicate your commitment to your employees is to be flexible and generous when the unexpected happens, and to give your employees the opportunity to help each other as well.

In the wake of fires, natural disasters, or health crises, for example, you might allow your employees to donate their accumulated PTO to coworkers facing emergencies. It will cost you nothing, and though you might have provided the PTO to the employee in distress anyway, it is a wonderful way to build community and allow those receiving the help to feel empowered to play their coworkers’ generosity forward in the future.

These types of benefits tend to be used by only a few employees over the lifespan of your business, so the costs are minimal. But values-based benefits can go a long way toward helping your employees develop a positive connection with your company’s core values. They can be a useful recruitment tool for job seekers looking for a mission-driven work environment.

Creative Perks to Help You Stand Out

You may not be able to outbid your bigger competitors, but you can get creative with small perks that set you apart. You might offer employees a package of sessions with a life coach or “lunch and learn” sessions on personal investment options, time management, or even cooking.

If your systems can accommodate it, allow workers to use whatever tech they are most comfortable with—Apple or Windows-based devices, for instance. Join your local chamber of commerce and partner with other local businesses to offer discounted purchases on travel, tech, or dining. Or consider fostering a pet-friendly workplace, including pet health insurance.

Try to come up with low-cost benefits that reflect your business’s unique culture or mission.

The Know-How You Need to Attract the Right Candidates to Your Growing Small Business Staff

From small business employee benefits that can compete with larger employers to the best ways to stretch your recruitment budget, Monster has the expertise you need to grow your business. Sign up to learn about the latest hiring news, recruiting best practices, and HR tools to attract and keep top talent.

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The “reasonable care” standard is subjective. The judge must decide if the employer took the amount of precaution a “rational” person would take in the circumstances. Here’s how you can structure your hiring process to best protect your business from this type of employer negligence claim.

What is Negligent Hiring?

An employee or customer can file a negligence claim against a business owner if they have been harmed by an employee and believe the behavior could have been anticipated based on the employee’s background prior to their hiring. For example:

• An employee at a moving company steals from a customer. A background check would have revealed that the employee had multiple theft convictions.
• An employee sexually assaults another employee. The employee was hired even though a background check showed they had been convicted of sexual assault.
• A truck driver hurts another driver in a car crash. The employer hired the person without looking at their driver’s record which would have shown they had multiple convictions for driving under the influence (DUI).

What do the Courts Consider?

Negligent hiring laws are different in each state, so it’s important to check your state’s requirements. However, the courts frequently require plaintiffs to show:

• The employer did not use “reasonable care” during the hiring process.
• The employee was “unfit” or “incompetent” for the role for which they were hired.
• The risk would have been evident if the employer had used “reasonable care.”
• The plaintiff was injured because the employer neglected to use “reasonable care.”

The judge could require the employer to pay for the damages caused by the employee, such as medical expenses or the cost of the stolen property. Because these cases can be expensive and time-consuming to litigate, many are resolved through settlement agreements.

Some employers get Employment Practices Liability Insurance (EPLI) to cover negligent hiring and other claims like wrongful termination. EPLI policies generally protect companies from wrongful acts directed against employees, former employees, and job applicants.

How Can You Protect Your Business From Legal Claims?

It’s important that you document your hiring policies and the steps you took for each candidate, so you have a record if you need it as evidence. Additional actions you can take to help prevent this type of negligence claim include the following:

1. Check a Candidate’s Criminal Record

One of the best ways to prevent negligent hiring claims is to run a criminal record check. Keep in mind that many states and cities have “ban the box” laws that preclude covered employers from inquiring about a candidate’s criminal record on a job application. It varies from state to state, but some require covered employers to wait until the interview stage or a conditional offer is made before getting the candidate’s consent and running the check.

There are also federal laws and guidelines you should adhere to when you run a criminal record check. The U.S. Equal Employment Opportunity Commission (EEOC) enforces Title VII of the Civil Rights Act of 1964, which prevents companies from discriminating against applicants and employees “on the basis of race, color, religion, national origin, or sex.”

Based on case law, the EEOC has found that a company is liable for violating Title VII if the employment decision disproportionately screens out a protected group and the employer is unable to show that it is relevant to the position and a business necessity.

The EEOC published an enforcement guidance with guidelines for using criminal background checks as part of your hiring process. For example, the agency recommends:

• Eliminating policies that disqualify all candidates with certain criminal convictions.
• Only considering crimes that are relevant to the job and could affect job performance or put the company at risk.
• Implementing individualized screening procedures for candidates with criminal convictions.
• Notifying the candidate that they may be screened out because of their criminal record and giving them the opportunity to respond and correct any inaccuracies.

2. Do Extra Due Diligence for Certain Jobs

If you’re hiring for finance, education, healthcare, real estate, hospitality, and other service industries with a lot of customer or client contact, your legal team may recommend you do a more thorough background check to prevent negligent hiring claims.

Depending on the role, you may want to check a candidate’s motor vehicle record (MVR) or credit report. As with a criminal record check, the Federal Trade Commission (FTC) and most state Departments of Motor Vehicles (DMVs) require you to get a candidate’s permission first and give them a chance to refute any inaccuracies.

If you’re hiring for a job that requires a license or certification, it is best practice to contact the appropriate organization to ensure that the candidate has an active license or certification. Similarly, if the job requires an advanced degree, you may want to call the college or university to check that the candidate is a graduate.

3. Call a Candidate’s References

Another way to show you took “reasonable care” during the hiring process is to contact a candidate’s references and all past employers to ensure that they worked for the company. A candidate’s references may provide insights into their interpersonal skills, strengths, weaknesses, and what it’s like to work with them.

Before contacting references, check if there are any relevant state employment laws you must follow. Find out if you need permission, what you can ask, and what the employers are permitted to tell you. Even if it isn’t a state law, some employers have a policy of only verifying that the person worked there and their dates of employment.

Avoid Claims and Discover More HR Advice

These steps should help you protect your small business from negligent hiring claims. You’re responsible for making sure your team complies with employment laws and follows best practices. Monster can help you stay informed. You can sign up to get HR and recruiting advice, news, and data delivered straight to your inbox.

Legal Disclaimer: None of the information provided herein constitutes legal advice on behalf of Monster.

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If you don’t have an HR department or in-house counsel at your small business, it’s up to you to learn and follow employment laws and best practices. Here’s what you need to know about this type of employer negligence claim and how to avoid it.

When Could You Be Found Liable?

An employee or customer who is harmed by one of the company’s employees can sue for this type of negligence if they believe the company “knew or should have known” the employee was a threat. The complainant will likely have the strongest case if the employee harmed an employee or customer previously and was not fired. For example:

• An employee brings a weapon to work and isn’t fired. They later violently injure an employee.
• An employee sexually harasses an employee and isn’t fired. They later commit another act of sexual harassment.
• An employee threatens to hurt another employee and the business owner doesn’t discipline the employee. They later hurt an employee.

What Will the Courts Consider?

Each state sets its own negligence laws, so it’s crucial to check the negligent retention definition in your state. For example, courts in some states will only hear cases in which the plaintiff has been physically harmed. Generally, the plaintiff must show:

• The employee works for the company.
• The employee is incompetent.
• The employer “knew or should have known” the employee is incompetent.
• The employee harmed the plaintiff.
• The fact that the employer retained the employee is the “proximate cause” of the harm.

The court could require the business owner to pay the damages caused by the employee, such as paying for the complainant’s medical bills or stolen property. It can be expensive and time-consuming to litigate these cases, so another option is to resolve them through a settlement agreement.

Some business owners get Employment Practices Liability Insurance (EPLI) to cover employer negligence and other claims like discrimination and wrongful termination. EPLI policies generally protect businesses from wrongful acts directed against employees, former employees, and job applicants.

How Can You Protect Your Business From Negligent Retention Claims?

There are multiple actions you can take to help you avoid this type of negligence claim. For example:

Launch a Thorough Investigation

If an employee or customer tells you or a member of your team that they have been harmed by one of your employees, it’s important to investigate. You are legally obligated to conduct a prompt investigation when someone reports workplace harassment, workplace violence, fraud, theft, discrimination, and additional incidents. If you can afford to, it can be beneficial to hire a firm to launch an independent investigation to remove the appearance of bias.

There are several other investigation best practices that employers should follow. For example, your legal counsel might recommend separating the complainant from the individual throughout the investigation by giving them a paid leave of absence, shifting their schedule, or having them temporarily transfer teams. (However, the complainant should agree to the plan because otherwise it could be viewed as retaliatory.)

It is also important to keep detailed records throughout the investigation process and to save evidence like emails or text messages. These records can be used in court or in mediation to show that you thoroughly investigated the incident before making a decision.

Take Action After an Investigation

When evaluating this type of negligence claim, a judge is likely to consider how you reacted when the investigation revealed that the employee harmed another employee or a customer. As with the investigation, document the action you took and keep it in the employee’s personnel file.

The best way to prevent a negligent retention claim would be to fire the employee. However, if that seems too severe for the incident, a judge will likely consider other actions. For example:

• Moving the employee to a different team.
• Reassigning the employee to a less customer-facing role.
• Heightening the supervision of the employee.
• Requiring the employee to complete additional anti-harassment, anti-discrimination, and ethics training.
• Issuing a formal warning.

Increase Supervision and Training

While it is especially helpful for avoiding negligent training and negligent supervision claims, increasing supervision and training (assuming both are done in accordance with best practices) can also help protect against negligent retention.

With increased supervision, you’re likely to identify problematic behavior sooner so you can act faster. You may also want to implement more anti-harassment, anti-discrimination, and ethics trainings for the entire company. Be sure to document your supervision and training processes and make sure the company’s anti-harassment, anti-discrimination, and ethics guidelines are stated clearly in the employee handbook.

Learn More HR Best Practices

These strategies should help you protect your small business against negligent retention claims. If you don’t have an HR department or in-house counsel, there is a bevy of best practices and employment laws to keep track of on top of your other responsibilities. You can sign up to receive HR advice, data, and news from Monster so you can spend more time on implementation than research.

Legal Disclaimer: None of the information provided herein constitutes legal advice on behalf of Monster.

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If you don’t have an HR department, it’s up to you to handle hiring and firing employees, and it’s crucial to make sure you follow employment laws and best practices. It’s a lot to keep track of but failing to do so could land you in legal jeopardy.

What is Wrongful Termination?

When you fire someone for an unlawful reason or contrary to one of your state’s at-will exceptions, you could expose your business to a lawsuit. The U.S. Equal Employment Opportunity Commission (EEOC) enforces federal laws that prohibit discrimination and retaliation.

While at-will exceptions vary from state to state, the most common are terminations that violate a stated public policy or employment agreement. If an employee thinks they were wrongfully terminated, they can file a claim with the appropriate federal or state agency and in some cases file a lawsuit. It can be expensive and time-consuming to litigate these cases and they are often resolved through a settlement agreement.

Discrimination and Retaliation

The EEOC enforces multiple federal employment anti-discrimination laws. It is illegal to fire an employee because of their:

• Race
• Color
• Religion
• Sex (including pregnancy, gender identity, and sexual orientation)
• National origin
• Age(40 or older)
• Disability
• Genetic information

The EEOC also prohibits companies from firing an employee as retaliation for, among other things, filing a job discrimination complaint or participating in a job discrimination lawsuit or investigation. Depending on your state and city, you might need to follow additional anti-discrimination laws.

At-Will Employment Exceptions

An employer may be found liable of wrongful termination if they’re done contrary to one of the exceptions recognized under state law. These are the four most common exceptions.

1. Public Policy

Employers generally cannot fire an employee for exercising a “protected legal right” under the state’s public policy. It differs from state to state, but some of the common “protected legal rights” include:

• Reporting a violation of legal rights in the workplace, such as harassment or discrimination.
• Notifying anyone about unpaid wages or unsafe working conditions.
• Discussing wage or workplace concerns with coworkers or attempting to form a union.
• Filing a complaint with a workplace rights agency.
• Suing, or participating in a lawsuit, against the company.
• Taking time off under the Family and Medical Leave Act.
• Filing a worker’s compensation claim.
• Participating in a public service, such as jury duty or voting.
• Refusing to do something illegal.

2. Employment Agreement Exception

Even though most states have at-will employment laws, companies can choose to set “for-cause” employment policies for the entire company or certain employees. For example, some companies have at-will employment agreements for executives or unionized employees. The employment agreement could, for instance, include exceptions for layoffs, job elimination, or restructuring.

Common reasons to fire an employee for-cause include:

• Purposeful wrongdoing.
• Fraudulent conduct.
• Stealing company property.
• Failure to perform job responsibilities.
• Intentional violation of company policies.

If you have a for-cause clause in an employment contract and fire someone for another reason, you could be found liable for wrongful termination.

3. Implied Contract Exception

Even if you don’t have a written for-cause clause in your employee agreement, some states will consider an “implied contract.” According to the U.S. Bureau of Labor Statistics (BLS), you could form an implied contract through:

• Verbal statements that sound like promises, like, “you can stay at our company for your entire career” or “as long as you perform well, you’ll always have a job here.”
• Written statements like set termination policies in your employee handbook.

To prevent being found liable for wrongful termination, the BLS recommends adding a disclaimer to written policies saying they can be changed at any time and don’t “create contractual rights.”

4. Covenant of Good Faith and Fair Dealing Exception

Some states recognize a “covenant of good faith and fair dealing.” According to the BLS, the courts have interpreted the covenant to mean that the employer must use “just cause” and that firing someone out of “bad faith” or “malice” is prohibited. For example, The Supreme Court of Nevada ruled in favor of a former employee who argued they were fired so the company wouldn’t have to pay retirement benefits.

However, as BLS notes, a “vast majority” of courts will not consider these cases because it would be too burdensome and time-consuming to constantly need to interpret an employer’s reasoning for firing an employee.

Learn More HR Advice

Now that you understand what wrongful termination is and how you can avoid it, you can focus on the more enjoyable HR responsibilities like building a strong company culture and helping your employees thrive. Sign up to receive hiring advice, news, and data from Monster so you stay on top of the best practices that will help you grow your small business.

Legal Disclaimer: None of the information provided herein constitutes legal advice on behalf of Monster.

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The number of tasks you need to address throughout your hiring process is extensive. Some are even legally required, and many should be completed well before you begin evaluating applicants. A detailed hiring checklist can help make sure you are in compliance with local, state, and federal employment law, and ensure that your next hire helps keep your business moving forward.

Before You Begin the Hiring Process

As much as you may want to hire more help, you may not yet be able to afford it. You will need to do some assessment—and some math—before you proceed to the next items in your hiring checklist. To determine whether it’s time to hire or look for other solutions, you’ll need to pay attention to two key factors: your company’s growth indicators and the workload you and your current employees are shouldering.

If your employees’ workloads are increasing and overtime costs are steadily increasing, it’s time to hire. Consider the following questions:

• Have you secured the needed budgeting for this position, including benefits?
• Have you budgeted enough for recruitment, search, and onboarding processes?
• Are your current employees’ workloads increasing, along with overtime costs?

If the answer to all these questions is yes, then you’re ready to start the hiring process. If not, you may need to make do with help from a consultant or labor-saving software until your profit margin increases enough to afford additional staffing.

Determine Who Will Make Your Hire

Your hiring checklist should include the important task of assembling your recruitment team—your human resources department (if you have one), a hiring manager, or a recruiting agency. If you have been, up to now, a sole proprietor, and you have no past recruiting experience, think about collaborating with a trusted consultant or local recruitment agency.

A small, community-based recruiter might even offer a discount on your first search as an incentive to work with you in the future as your business and hiring needs grow.

Make Sure to Comply with Employment Law

Your hiring process checklist should include all the paperwork and legal obligations you will need to have in place before you bring on a new employee. If this is your first hire, or you haven’t made a hire in a while, there are a few actions you may need to take to make sure that you are in compliance with local, state, and federal laws guiding employment practices, including the following:

• Make sure you have an employer ID number.
• Register to pay state and federal payroll taxes and determine any registration and tax requirements of the municipality where your business is located.
• If your state requires it, purchase worker’s compensation insurance. If you’re not sure whether your state requires this, you can check with the National Federation of Independent Businesses.
• Check with the U.S. Department of Labor to learn which federal labor regulation posters you are required to display at your place of business.
• Finally, make sure you’ve calculated accurate withholding for state unemployment taxes into your payroll process.

Craft the Perfect Job Description

Ideally, the hiring manager and HR team should work together to determine what needs the new hire will fulfill. At smaller companies, the owner may be the one making all new hires. In this case, ask someone you trust who understands your business to help you draft and edit your job description.

Your job description is a critical step in your job search process, so it’s advisable to dedicate a section of your hiring checklist to drafting a strong job posting.

• Begin with a short paragraph or a set of bullet points that describes why your business is a great place to work.
• List the job’s responsibilities and the preferred skills, experience, and educational background of your ideal candidate.
• Use a salary tool that calculates for job title and location to determine a salary range, along with a description of benefits.
• End with a call to action that encourages candidates to send a resume or fill out an application.

Consider browsing through postings for similar jobs for inspiration. Once you’ve finalized the wording, make your job listing easy to find and your application process simple and clear.

Interview Hiring Checklist

Once you start hearing back from candidates, select which applicants you want to interview. Notify candidates you are eliminating from consideration at each step of the process, so you don’t gain a bad reputation among the wider applicant community.

If you don’t get enough replies to your job ad, consider lowering your experience and educational requirements or increasing your salary range. Ask employees for recommendations or reach out to local colleges, tech schools, and business associations.

As you prepare for your candidate interviews, make sure you work with someone else—another employee, a trusted consultant, or an outside recruitment agency—to craft a variety of questions to help you get to know each candidate. Even if you are a sole proprietor looking to hire your first staff position, you may want to have someone else sit in on the interviews for added feedback.

Your questions should:

• Build rapport. Put your candidate at ease at the beginning of the interview by asking them things they are likely to know. For example, why they are interested in the job, or why they are in their chosen field.
• Explore past experiences. Ask about what experiences from their past jobs relate to the current position, about successes they’ve had, or challenges they’ve overcome.
• Test knowledge. Find out what technical skills the candidate has and how they would use these skills to solve problems.

Compile All Necessary Documents

One of the most essential aspects of your hiring checklist will be ticking off every box next to the legal documents that you should have prepared to be filled out by your new employee, well before their first day. Begin compiling this paperwork before you have selected your final candidate.

These include:

• Offer letter
• Employment agreement
• Employee eligibility verification (I-9)
• Federal income tax withholding form (W-4)
• Health insurance enrollment forms

Select the Ideal Candidate

Now that everything is in order, talk with everyone who met your finalists and compare notes on what impressed you and what concerned you about each candidate.

• Consider their soft skills: Which applicant seemed to have the strongest customer focus, interpersonal, and communication skills?
• Whose experience and background are the best fit for the job in question?

Once you’re ready to make your offer to your preferred candidate, give them time to think about your offer and be prepared to adjust your salary range.

Check Off More Boxes on Your Hiring Checklist with Expert Advice and News for Employers

The hiring process is anything but simple, which is why employers of all sizes can use a little help from time to time. From expert advice to the latest recruitment trends, Monster’s hiring newsletter provides news, tips, and more designed to help you grow your business.

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Let’s look at what makes hiring unique with microbusinesses and how to set yourself up for success as you go about hiring the best employees for your company.

What Is a Microbusiness?

Microbusiness is a subcategory of small business, and usually refers to companies with around 10 employees or less. The category typically includes businesses such as:

• Startups
• Small family-owned businesses
• Solopreneur businesses with only one employee, such as freelancers, consultants, and independent contractors

These types of businesses have been on the rise in recent years, especially as working from home and gig work have become more common, leading to an increase in solopreneur businesses. They often, but not always, have smaller operations and revenue and require less than $50,000 to start up.

They typically don’t use traditional business loans or have investors other than the owner. In the past they might have been lumped into the larger “small businesses” category or referred to by terms such as “sole proprietorship” or “mom and pop business.” Examples include freelance operations, food stands, and small home-based businesses.

How to Know When to Hire Your First (Or Next) Employee

When deciding whether it’s time to hire an employee, be sure you have a clear idea of what problems you’re trying to solve with the additional staff. From there you can determine if you need full-time, part-time, or contract employees.

For example, if business is booming and you need help with the bookkeeping, customer service, fulfilling orders, and managing your sales pipeline, you may or may not have enough work for a full-time employee in all four areas. So, it’s important to look at your situation and ask, how much work is there for each role? Is it enough for full-time, part-time, or less than part-time? Is the workload consistent or does it fluctuate?

The advantage of hiring contractors is that you can:

• Hire them on an hourly or per-project basis, paying only for what you need when you need it.
• Easily scale their workload up or down as your business needs change, without having to hire or lay off anyone.
• Test out working with someone before you commit to a full-time hire.

The advantages of hiring people full-time or part-time include the following:

• Their time is dedicated to you instead of juggling multiple clients.
• You have greater control over how and when they perform the work.
• They become more ingrained in your culture and operations.

Hiring Best Practices for Microbusinesses

Before you post a job listing, begin by preparing a few critical elements in advance. Getting your ducks in a row ahead of time will help ensure that you are attracting quality candidates and ready to close the deal when you find the right person.

1. Know How to Describe Your Company and Culture

Gather a few key facts about your microbusiness that you can share with candidates. Is your company fast paced? Obsessed with quality? People-focused? The goal is to quickly provide an idea of the kind of company it is and what it might be like to work there.

Also be ready to talk about why you’re hiring and what your growth trajectory looks like. Are you anticipating moderate but steady growth and planning to stay small? Are you growing rapidly and looking to put together a nimble team that will help take the company to the next level?

Being up front with this information will help candidates determine if it’s the kind of company culture they’ll thrive in. And getting the cultural fit right makes it far more likely that an employee will stick around for the long term and be more enjoyable to work with.

2. Write a Clear Job Description

Crafting a clear job description will save you precious time and energy during the hiring process. It’s important to communicate requirements like:

• The tasks you need them to do, and what skills will these require.
• The soft skills or personality traits they need to be successful in the role.
• Any certifications, degrees, or specific experience that is absolutely required.

It’s a good idea to distinguish between must-haves and nice-to-haves so that you don’t eliminate good candidates who just need a little more training to meet your needs. Most of the time, hiring someone with the necessary personality traits is more important than their experience doing the same job elsewhere (although ideally, they will have both).

3. Determine Compensation

Use salary research and calculator tools to find out the fair market pay for the role you’re hiring for. Be sure to factor in the cost of benefits, and all applicable federal, state, and local payroll taxes. Do your best to offer competitive salaries to attract quality candidates. Hiring a smart, capable person who doesn’t require constant oversight will save you money and headaches in the long run.

As a microbusiness owner, it may be particularly difficult to offer a competitive salary. But, even if you can’t pay quite as much as large businesses, be sure to point out any lifestyle benefits such as flexible work hours, work-from-home options, time off for volunteering and family activities, etc.

4. Plan to Evaluate the Must-Have Skills

Anyone can say they’re good at a job, but the proof is in their work. While the interview process can be highly subjective and depend on a candidate’s soft skills, it’s a best practice to evaluate hard skills. Some ways you can test out their expertise is by:

• Asking for samples of their work (for jobs like design, writing, etc.).
• Having candidates take an online test (for things like typing speed, subject matter knowledge, etc.).
• Giving them a small assignment (an exercise that takes less than 2 hours to complete).
• Role playing (for positions in sales, customer service, etc.).

5. Complete the Appropriate Human Resources Paperwork and Processes

If this is your first hire, there are a lot of human resources and compliance logistics to cover, including:

• Getting an Employer Identification Number (EIN) from the IRS.
• Verifying eligibility for employment.
• Setting up a payroll system.
• Maintaining tax documents (collect W4s, send out W2s, etc.).
• Compiling benefits packages and disclosing employee rights.

While this may seem overwhelming, there are ways to lighten the load for your microbusiness. If this is all new to you and something you don’t have time to become an expert in, hiring a payroll or HR company that works with small businesses can remove the guesswork and ensure that you don’t skip any important steps. Your bookkeeper or accountant may be able to refer you to someone.

Make the Right Hire for Your Microbusiness

When hiring, pay attention to red flags, listen to your instincts, and hire for the best possible fit—you can always train for skills. A dedicated, enthusiastic, professional worker is worth investing in training if they bring a can-do attitude that benefits your customers, employees, and the business in general. When you’re ready to get started, post your microbusiness job opening on Monster for free.

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The same applies to the job market. When looking for employment, more than half of jobseekers like to apply to companies that were recommended by others and associated with happy employees and candidates. As such, small business owners and hiring managers in search of top talent must consider word of mouth recruitment and foster relationships that build the framework for it.

Attracting and retaining top talent can be tough, especially in a tight labor market. To meet your company’s hiring goals, the more tools you have at your disposal, the better. Five actions you can take to incorporate word of mouth into your hiring strategy include:

1. Soliciting candidate reviews
2. Collecting candidate testimonials
3. Encouraging employee advocacy
4. Creating a company culture that emphasizes trust
5. Running a referral bonus program

Below are more specific steps for each of these actions that will help bolster your word of mouth recruitment efforts.

1. Ask for Candidate Reviews

Candidate reviews are important as they give other prospective applicants confidence that it’s worth applying to a company. Be sure to take advantage of any platform that allows for reviews, such as Google My Business, Yelp, and Facebook. Also, remember to monitor reviews and reply to them regularly.

When creating your business’s profile on these platforms, you can post the best reviews on your social media accounts and highlight them on your website. By sending links to the review page, you make it easy for happy candidates to submit their feedback and increase your chances of gathering five-star reviews.

2. Collect Candidate Testimonials

Another option for increasing word of mouth recruitment is to reach out to candidates that had a positive experience with your company and ask them to leave testimonials. Take quotes and comments from these testimonials and turn them into eye-catching content in the form of images, illustrations, graphs, or animated videos and share them on whichever social media platforms you use.

Make it a habit to save testimonials in a spreadsheet that you or your hiring manager can easily access to repurpose at any time for your social media accounts. Sharing candidate testimonials provides two benefits: potential customers get to read about your company’s unique selling points while potential candidates see your company from the perspective of someone who has been in their shoes.

3. Encourage Employee Advocacy

Having a great company culture helps foster a positive work atmosphere which in turn ensures employees are happy working at your company. It’s also an excellent way to encourage word of mouth recruitment.

Companies with an employee advocacy strategy are 60 percent more likely to attract high-quality applicants and 20 percent more likely to retain them. Encourage your employees to share about the business publicly, both online and offline, and watch their praise go a long way in promoting your company.

When implementing an employee advocacy program, make sure it is:

• Strategic: Clear goals should be defined and metrics should be specified to measure progress toward those goals.
• Sustainable: With support from management and a plan for keeping enthusiasm up, the program will be designed to last long-term.
• Organic: Don’t mandate advocacy, instead encourage it. Participation should be voluntary and out of genuine interest.

4. Start a Referral Program

Referral programs are a triple-win solution for you, the referrer, and the candidate: you get high-quality candidates, the referrer gets incentivized by a referral fee, and the referred candidate has a leg-up over other applicants. By motivating employees through incentives like cash, extra vacation time, or other perks, they’re more likely to be proactive and go out of their way to recommend your company and find you good candidates.

5. Create a Company Culture That Emphasizes Trust

A company culture where employees feel respected and heard translates into one with a foundation of trust. These companies are also more likely to attract high-quality candidates through word of mouth. You can create an environment of trust by:

• Keeping your word—never over promise to avoid under delivering
• Demonstrating integrity
• Implementing a strong company culture and enforcing policies that everyone follows
• Creating a company-wide social media policy that ensures everyone on your social media channels behaves
• Encouraging feedback from employees to continually learn and improve

Word of Caution

To stay within the realms of legality, avoid relying solely on word of mouth recruitment. If, for example, a position opens at a small company of 10 white, male employees in their 30s and you ask them to provide candidate referrals, chances are they will refer peers that are also white, male, and in their 30s.

When asked for referrals, women tend to reach out to other women in their networks, and men do likewise. Make sure that your recruitment strategy doesn’t contribute to job segregation. In the scenario above, it’s important to use word-of-mouth recruiting as part of a broader recruitment strategy—not your only tool—that also integrates diversity recruiting strategies to ensure you reach a diverse pool of candidates.

Stay Informed About the Best Hiring Strategies

Word of mouth recruitment is an excellent way to both promote your company and find qualified candidates. Investing more of your resources toward encouraging word of mouth is a win-win for your hiring strategy and your company’s reputation. Keep up with other top hiring recruitment strategies by getting tips and insights delivered right to your inbox from Monster.

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Your small business needs to aim for a year-over-year growth rate of at least 15 percent just to stay safely ahead of inflation and have enough revenue to invest back into your company each year. Getting to that 15 percent growth rate might be as simple as raising your prices or looking for less expensive suppliers, but for most small business owners the math won’t be that simple.

Small business growth requires a multi-tiered game plan that employs several tactics simultaneously. The five strategies below can help you hit your growth targets and ensure that your small business remains robust and thriving for years to come.

1. Create a Growth Plan for Your Small Business

Before you do anything else, you need to have a plan. Your local small business development center can provide expert assistance on how to map out your plan, including helping you find funding if you suspect you might need to raise investment capital to make your plan work.

Follow these steps to put together your growth plan:

• Collect data on your current sales, distribution streams, profit margins, pricing, and costs.
• Do research on expected price increases that might affect your costs.
• Calculate how much growth you’ll need over the next year, or even the next 3-5 years, for your small business to remain viable.
• Evaluate your products and services. Which are selling well, and which are languishing?

Include a strategy for how you will compete against other businesses in your niche. This could mean underpricing your competitors, building a reputation for superior quality and service, or refining your sales, marketing, and product design to appeal to an untapped market segment.

Make sure you perform cost-benefit analysis for each investment you make to achieve growth. Set goals on how much revenue you hope to bring in, along with strategies on how to meet each goal. As you move forward, measure your progress and adjust your plan accordingly.

2. Tend to Your Current Customers

There are two avenues for growing market share: horizontal growth aims to increase your reach to new customers, while vertical growth aims to increase sales from your current customer base. Don’t make the mistake of focusing solely on expanding sales channels and taking your current customers for granted, as small business growth is not limited to new markets or customers.

Instead, focus on providing excellent customer service with your current clients. Traditional brick-and-mortar small businesses are in an excellent position to create and maintain customer loyalty. They get to know their customers’ names and favorite orders. What they often neglect to do is track their regular customers using metrics.

By offering your current customers discounts in exchange for feedback, you can learn what problems they solve by buying your products. Not only can you use this information to reach new customers, but you can also use it to upsell to your regulars. Customer loyalty programs are a great way to develop brand loyalty and identification, and have been shown to increase customer purchases by as much as 300 percent.

Finally, ask your satisfied customers to provide testimonials for your web site and other marketing channels.

3. Focus on Marketing to New Customers

Relying on current customers to increase demand for your products will only get you so far. You’ll also need to develop a customer acquisition strategy to attract new ones. The best way to develop new sales channels is to develop a marketing strategy that generates sales leads and increases brand awareness.

Use digital marketing channels, starting with your web site, to talk about your products, offer discounts, and provide useful information to users, thereby increasing their trust in your brand. Your small business growth plan should include annual marketing goals that increase your reach. For example, if you already use social media, make it a goal to add a newsletter as well. If you already have an online storefront, add a learning center or blog.

Offer discounts for first-time purchases that keep customers coming back to your virtual or physical retail space. For example, you might offer users a redeemable online coupon if they sign up for your newsletter.

Another way to expand sales channels is to develop partnerships with other businesses and organizations. For example, co-sponsor a fundraiser for a local charity with a neighboring retail store or join your local chamber of commerce. Also, consider cross-promoting with other businesses that complement your own, but that are not direct competitors.

4. Optimize Tech and Automation

Evidence indicates that small businesses that invest in tech weather tough times and economic downturns better than those that don’t. Technology can be a cost-effective way to increase productivity, cut costs, and free up time, all of which is especially important for small businesses with limited staff.

Applications and software platforms can aid with inventory tracking, cost estimates, bookkeeping, pricing, purchasing, employee scheduling, payroll, and more. But figuring out which tech solutions you need can be daunting. You’ll want to build out a tech strategy just as you would any other aspect of your small business growth strategy.

Begin by making a list of the biggest demands on your time: Do you lose days to tracking inventory and dealing with vendors? Or is your biggest headache keeping track of sales and billing? Once you’ve listed your top two or three most onerous responsibilities, you can begin researching technical solutions to address them. And If you don’t yet have a digital storefront, web site, or social media marketing presence, work to develop them.

5. Hire Customer-Focused Employees

At a certain point in your small business growth trajectory, you need to stop trying to do everything yourself. Even a bare-bones staff won’t be enough to keep your growth rate on an uptick forever. For maximum growth you will need to implement a hiring strategy that attracts diligent, curious, hard-working employees who are as enthusiastic about your products as you are.

Focus on hiring with an eye toward digital marketing skills, customer service, and tech. If you can’t yet afford to hire full- or part-time staff, consider contracting for help with core functions that can be outsourced, such as marketing, bookkeeping and finance, and inventory and fulfillment. Investing revenue back into your business by hiring good staff will free you up to focus on what you do best –coming up with new product offerings and building long-lasting customer relationships.

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You know the basics of how to plan and implement a strategy, but an entrepreneur’s work is never really done. Could you benefit from additional, expert insights into recruitment and management? Sign up to learn more about small business hiring tips and other avenues to success.

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As a small business owner or manager, you have a lot of responsibilities to handle. It takes time to research government contracts and the hiring regulations you must follow as a government contractor. We’ve consolidated the most important information you need to know so you have more time to focus on building your business.

How to Get Small Business Government Contracts

Government agencies are required to list their available contracts so companies can submit bids. The U.S. Small Business Administration (SBA) sets the eligibility requirements for each contract based on the team size, revenue, and industry.

Some small business contracts are reserved for companies with owners that meet certain demographic requirements. For example, there are contracts specifically for businesses primarily owned by women, service-disabled veterans, and “socially and economically disadvantaged” people.

According to the SBA, you can increase the likelihood of winning small business contracts by selling products and services at a competitive rate, consistently delivering high-quality products and services on time and on budget, and having a strong reputation in your industry.

Federal Employment Anti-Discrimination Laws

Executive Order 11246 requires any company that receives more than $10,000 a year in federal government contracts to adhere to federal employment anti-discrimination laws and to implement affirmative action throughout the hiring process. You must comply with the following laws (state and local laws and regulations also may apply):

• Title VII of the Civil Rights Act of 1964: This law prohibits companies from discriminating against applicants and employees “on the basis of race, color, religion, national origin, or sex.” It is illegal to retaliate against applicants or employees who file a discrimination complaint or participate in an investigation. Additionally, companies need to provide reasonable accommodations for religious beliefs. The act was amended to include The Pregnancy Discrimination Act.
• The Age Discrimination in Employment Act of 1967 (ADEA): This law prohibits discriminating against applicants and employees who are 40 years old or older and prevents retaliation.
• Title I of the Americans with Disabilities Act of 1990 (ADA): Under this law, it’s illegal to discriminate against applicants and employees with eligible disabilities. It also requires employees to provide reasonable accommodations for applicants and employees with disabilities.
• The Genetic Information Nondiscrimination Act of 2008 (GINA): This law prohibits discriminating against applicants or employees because of genetic information, including genetic test results and family medical backgrounds.

Job Posting Regulations

The U.S. Department of Labor’s (DOL) Office of Federal Contract Compliance Programs (OFCCP) mandates job posting and notice regulations. Depending on the size of your small business government contracts and the role, you may be required to notify the American Job Center or your state workforce agency. Government contractors must specify that they’re an equal opportunity employer by posting required signage in the office and including a statement in all job posts.

There are different job posting language requirements based on the type of company, but there are two commonly used “taglines.” You can simply say you are “an Equal Opportunity Employer, including disability/vets” or say, “All qualified applicants will receive consideration for employment without regard to race, color, religion, sex, sexual orientation, gender identity, national origin, disability, or status as a protected veteran.”

Affirmative Action Programs

Depending on the size of your small business and contract, you may be required to develop a written affirmative action program. The theory is that workplaces that don’t discriminate should have a diverse team if they have a diverse candidate pool.

Companies that receive small business government contracts must compare their workforce data to the candidate pool and document and implement actionable policies and procedures for increasing diversity. For example, companies could make the hiring process more equitable by writing inclusive job descriptions, using blind applications, requiring hiring managers to complete anti-bias trainings, standardizing the interview process, and avoiding illegal interview questions.

Recordkeeping Requirements

It is mandatory to keep certain employment records, including application forms, resumes, interview notes, and applicant demographic data-for one year. One solution for making this process easier is to use an applicant tracking system (ATS) to collect and save necessary hiring data.

Also, depending on the size of the contract and your company, you may be required to send an EEO-1 Report to the DOL and the United States Equal Employment Opportunity Commission (EEOC) annually. The agencies collect demographic information, such as the sex and race or ethnicity of all employees and their job categories and pay. Even if you are not required to fill out the report, it’s helpful to complete an independent audit. The data can be used to identify pay discrimination so your leadership team can make necessary adjustments.

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A Gartner survey of 127 industry leaders shows that 82 percent of employers plan some remote employment options. This includes hiring remote team members to access quality talent outside of their geographic location.

Below are a few best practices for hiring remote workers to help small business owners and hiring managers like you ensure your remote hiring practices yield the same results as you’d expect from a traditional interview and hiring process.

Virtually Introduce Yourself

One of the most effective best practices is incorporating video content throughout the recruiting process. Consider adding a link to an introductory video to your job listing or send the link to candidates once their interview is scheduled. Yes, they can perform an online search, but this is your opportunity to make a powerful first impression, which is even more important since you won’t be interviewing face-to-face.

The video can include a preview of your remote operations as well as the type of project management and communication software you use to keep your team connected. If not a video, consider including a link to a virtual team member page that speaks to how you keep everyone engaged.

Clearly Outline Remote Obligations

Effective communication takes on added importance when managing the interview process for remote workers. Expectations regarding work styles, availability, and team interactions may get lost in translation. To avoid such mishaps, best practices suggest clearly outlining processes, expectations, and obligations prior to and throughout the process. Answer questions such as:

• What time zone will you expect employees to be available?
• How flexible are the work hours (scheduled work hours vs. deadline-driven hours)?
• How often will the team meet virtually?
• When and where will the employee be required to attend in-office meetings?
• How far away can the employee live from your office or headquarters?
• Who will pay for transportation to and from the office if a flight or long drive is required?
• Is the position permanently remote?

Extend the Interview Process

Best practices for hiring remote workers also includes extending the interview process. Since neither of you will get an in-person feel for one another, this can provide the extra exposure to the other’s personality, helping you pick up on nuances that are more readily discernible in person. You can also use activities like administering a pre-interview assessment, starting with a phone interview, providing a virtual tour of your company and operations, or even just conducting three interviews instead of two.

Three interviews may sound like a lot, but many candidates are more nervous to interview virtually than they are in person. While nerves are always a factor, adding an additional interview or two can help candidates get more comfortable speaking to you on camera.

Don’t Lose Sight of Your Company Culture

You may have already learned this the hard way, but just because a candidate won’t be working with you or your team in person does not mean a good fit with your company culture is any less important.

Company culture is the collection of beliefs and behaviors that determine how a company’s employees and management interact. Culture can be shaped intentionally or grown organically and impact every aspect of business—even if you’re hiring remote workers. As a small business owner, you may be able to emphasize your company culture as a selling point for employees who’ve grown weary from working at large firms where there’s less opportunity to make a big impact.

Beyond their skill set, candidates must have the personality, passion, innovation, communication style, and level of professionalism that will complement your current team members. Or, if your company culture needs improvement, they must possess the traits you are working towards achieving.

Culture is important to candidates, too. In the U.S., 35 percent of job seekers said they wouldn’t accept a job that was a perfect match if the corporate culture clashed. Implementing best practices for hiring remote workers requires that your company culture be more than a mission statement. It must shine through to the candidates during the hiring and onboarding process.

Get Your Team Involved in Hiring Remote Workers

Getting your team involved supports a variety of the best practices on this list, including ensuring candidates are a good match for your company culture. There is a variety of ways to get your team involved in the hiring process, such as:

• Asking your team to refer quality candidates
• Offering a referral bonus
• Inviting team members to narrow down the candidates
• Mixing up who you invite to interview depending on the job opening
• Having at least one interview with a small panel of employees

Prepare Virtual Interview Questions

In addition to your job-specific go-to questions, prepare a few virtual interview questions to determine if working remotely is the right fit for your candidate. The objective is to identify if they have the communication skills required to collaborate from afar, as well as the organizational skills, self-discipline, and time management skills to work from home.

Questions can include:

• Do you thrive working independently?
• Have you worked remotely before?
• If so, what did you like most about working remotely?
• What are the greatest challenges to working remotely?
• What project management and communication software have you used?
• What did you like most about the software?
• What did you like least about the software?
• Do you feel like part of a team when working remotely?

While you may provide some of the remote technology they need, be sure to ask a few questions that address what technology candidates are responsible for providing. This shouldn’t come as a surprise, as it should be included in your job description. For example, a computer or laptop, solid internet connection, and a backup co-working space they can work from if the internet is down.

Ensure You’re Tech-Ready

Your virtual first impression is just as powerful as your in-person first impression. Here are a few tips to put your best foot forward when hiring remotely:

• Ensure you send an interview link in advance, and maybe an automated reminder.
• Use a quiet and distraction-free room to log into the online interview
• Skip the virtual backgrounds unless your company has created a branded background.
• Login to the interview at least 5 minutes early so you don’t leave the candidate waiting.
• Wear a headset or earbuds and test your audio and video before you go live.

Also, consider providing the candidate with a virtual interview checklist, including what software they may need to download to access your interview link.

Use Best Practices to Build Your Remote Team

There are a quite a few unique considerations when hiring remote workers. Use these tips to get you started. Be sure to stay abreast of other trends and best practices by signing up to receive Monster’s expert insights, delivered free to your inbox.

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