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Also in Stage Two:
Set Marketing StrategyIdentify Technology UsesDefine Personnel NeedsChoose EquipmentEstablish Quality ControlDetermine InventoryChoose Advisors & Services

Stage 2: Strategies

Stage 3: Law & Taxes

Stage 4: Facilities & Insurance

Stage 5: Calculating Costs

Stage 6: Financing

Related Resources:
WEB: U.S. Department of Labor

WEB:
American Express Small Business Exchange: Know Who You Want to Hire

WEB:
American Express Small Business Exchange: Hiring

WEB:
American Express Small Business Exchange: Little-known Hiring Resources

WEB: www.shrm.org

WEB: www.astd.com

WEB: www.entrepreneur.com

WEB: www.morebusiness.com
Stage 2: Strategies

Step 7: Define Personnel Needs

The Concept:
No matter how well you utilize technology, people are still the key to the success of your business. Make sure your employees have the skills, experience, and training they need, and pay them competitively.
 
What you need to know:
Talent and dedication will take you far but once day-to-day requirements expand beyond what you can do by yourself you'll need to hire employees. Proper planning will allow you to efficiently navigate the hiring process while minimizing obstacles and wrong turns in the highly demanding atmosphere of a young business. A competitive job market can limit your choices whether you're hiring highly skilled employees or teenagers just entering the workforce. Avoid the lure of an overly simple hiring decision done in the interest of time. Conduct in-depth interviews and interview more than one candidate. Reference checks are a must. Contact a candidate’s previous employers. Background checks will reflect driving records, criminal records and citizenship. There are organizations that conduct background checks for a fee.

These steps are vitally important especially when you consider that a key employee will need to know “key information,” such as bank account numbers or the combination to the office safe.

Before placing a “Help Wanted” ad, carefully consider how many employees are needed. Define a position with an overview of requirements and duties. Write a job description. This helps clarify what you need and serves as a guideline for a new employee. What education and skills are required? What training might be needed, who will provide it and at what cost? The need for personnel will change as the company grows and changes. Consider whether you require help on a permanent basis or if a contractor, consultant or temp can assist during a busy time.

Assuming you find the right people for the job, you'll have the dual role of wage provider—offering competitive salary and benefits—and mentor—addressing each employee's need for a sense of accomplishment and being appreciated. You'll have to do well on both counts if you hope to hang onto good people and, by extension, everything you've worked so hard for up to this point.

Personnel Policies need to be developed in order to protect you and your company, and at the same time protect and promote a positive, productive environment for your employees. Employees should be given copies of the company’s policies, preferably along with a training manual. Employees should read and sign these policies. Should any policy issues come up during employment, the signatures can confirm that employees were informed.

In consultation with a business or labor attorney, draft a personnel manual that addresses some or all of the following areas: attendance, conflict of interest, non-compete issues, employee benefits, holidays, open door policy, performance reviews, sick days, termination, vacation, and sexual harassment. Consider employment agreements with key employees. Again in consultation with your attorney, draft and execute agreements that detail responsibilities for key employees or executives.

Points to consider:
What level of wages and benefits must you provide to be competitive in your industry?
What costs connected with hiring, benefits, training, workstations, etc. should you expect?
Who will assist with the safekeeping of your important documents?

Are human resources of the appropriate education, skills and experience available to meet your business needs?
Should your business be restructured to address a personnel shortage?
Have you consulted a business or labor attorney and instituted personnel policies that protect your business from legal action or damage?
Will these policies promote a positive, productive work environment?