Staff Your Business

Staff Your Business

Vocabulary Words You Need to Know

• wages

• salary

• bonus

• profit sharing

• commission

• benefits

The Hiring Process

• Hiring the best people available and retaining them is important for the success of your business. 

• Four steps involved in the hiring process:

• (1) screening candidates, (2) reviewing and verifying information on job applications, (3) interviewing the best candidates, and (4) making a job offers

1st Step: Screen Candidates

• Eliminate people who are not right for the job

• You need to match the job candidate’s experience and skills with the job description

• You cannot screen on protected classes, which are characteristics of a person that cannot be targeted for discrimination.

• Protected classes include such things as race, gender, religion, ethnicity, national origin, and marital status.

2nd Step Review and Verify Information on Job Applications

• Potential candidates complete a job application.

• The application allows you to gather information that might not be included on a resume.

• Once you have applications and resumes from candidates, you may need to narrow the pool down even further.

• Check the candidate’s credit score and criminal record. Contact any references and/or past employers that are listed

3rd Step Interview the Best Candidates

• The job interview provides you with the opportunity to determine whether a prospective employee would improve your ability to meet customer needs

• Share your values and plans for the business. 

• Explain the atmosphere in which the candidate would work.

4th Step Make a Job Offer

• Contact person by phone

• Be sure to emphasize how much you would like the applicant to join your company

• Clearly state the starting salary, benefits, and terms of employment.

• Once a candidate accepts your offer, contact the remaining candidates. Thank them for interviewing with your business and politely let them know that you have given the job to another applicant.

Open Ended

Why is it important to contact the references and/or past employers provided by a job applicant?

Compensation Package

Types of Pay

• Wages are payments for labor or services that are made on an hourly, daily, or per-unit basis

• A salary is an amount paid for a job position stated on an annual basis.

• Wages and salaries can be paid weekly, biweekly, or monthly.

• Employees may also receive a bonus, which is a financial reward made in addition to a regular wage or salary.

• Profit sharing is another compensation arrangement in which employees are paid a portion of the company’s profits.

Commission

• Percentage of a sale paid to a salesperson

• Commission-only plans are good for employers because commissions are paid only when sales are made

• A combination plan includes a base salary plus commission.

Benefits

• Benefits are rewards, other than cash, given to employees. They may include paid time off, insurance, and a retirement plan.

• Almost all employers offer paid time off to their employees. (include paid vacation, paid holidays, sick leave, and personal days)

• Health insurance is often viewed as the most important part of a benefits package

• Some businesses help employees save for retirement by offering 401(k) plans.

• Employees who participate in 401(k) plans have a percentage of their earned income withheld by the employer to be deposited into a professionally managed investment account.

Multiple Choice

What are payments for labor or services that are made on an hourly, daily, or pre unit basis?

• Wages

• Salary

• None

Regulations That Protect Employees

• National Labor Relations Act (NLRA) of 1935

• Fair Labor Standards Act (FLSA) of 1938

• Civil Rights Act of 1964

• Age Discrimination in Employment Act of 1967

• Occupational Safety and Health Act (OSH Act) of 1970

• Americans with Disabilities Act (ADA) of 1990

• Family and Medical Leave Act (FMLA) of 1993