10 Tips for Hiring Employees for Your Home-Based Business

Some home-based employers may have problems with hiring an employee for their business. After all you’ll be making that person a part of your team and letting him into your home.

That said, Allbusiness.com offers a few recommendations for hiring employees for your home-based business.

Know what you’re getting yourself into

First and foremost, you have to know what you’re looking for. Will you be hiring part-time or full time employees or independent contractors? Of course, having employees entails dealing with payroll and benefit. You have to decide if you’ll be handling these tasks in-house or will you have an outside firm handle them?


Before placing a help wanted ad, ask friends, family members or former colleagues for referrals. You might also want to look for prospective employees at colleges and universities, organizations or trade associations, and chambers of commerce.

Do your homework

Before hiring anyone, know your states and employment laws and your town’s zoning laws.

Outline your compensation package

Determine what you can afford to pay your employee and what other benefits you can afford to offer. If you’re cost-cutting, offer alternative "benefits." These may include flexible working hours, telecommuting, etc.

Be diligent

Since you’ll be letting your employee into your home everyday, you have to carefully screen you candidates. Verify if he/she is legally allowed to work in the US. You should also do a background check and reference check.

Conduct the interview

Again, since that person will be working in your home, you should know as much about that person as possible. Apart submitting a resume, ask applicants to fill out an application form and to give you references. You might also like to have someone else with you during the interview. This is so you can compare you impression of the candidate to another person’s impressions.

Cover you assets

Make sure that worker’s compensation (as well as any other liability to which you may be open) is included in your business insurance policy. Consult with you agent or broker before your employee starts work.

Set boundaries

This basically means making sure your employee understands where the home office ends and where your home begins. Let them know which rooms are allowed to them and which aren’t, and what the business hours are.

Compile an employee handbook

Just the fact that you have one tells your employee know that you take your management duties seriously. Your handbook should cover everything from job titles and descriptions, office rules, and procedures for requesting vacation time or reporting an absence, to policies on sick days, hours, personal use of phones, and performance expectations.

Prepare your family

Your family members may resent having a stranger around the house. This is where the boundaries play a role. Assure your family that they will not intrude upon their personal space and that they are not obligated to entertain the employee or treat them as a guest.

Source: Allbusiness.com


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