In Part One of our three-part series, “How to Hire an Assistant”, we discussed the initial stage of the hiring process, crafting an effective job description. In Part Two, we continued forward into the next part of the hiring process, the honing and selection of final candidates, with organizational tips for processing a large number of candidates and whittling them down to a manageable number, as well as strategic tips for interviewing the final candidates to determine which one is the best fit for your job. In Part Three of our series, we’ll now cover the last part of the process – how to craft an offer for your ideal candidate that serves as a win-win and the start of a great working relationship for both you and your new hire!

Deciding on Compensation

Deciding on compensation is more than just deciding on a salary. The real cost of the compensation should include every aspect of your employee’s benefits. This could include:

• Health Benefits
• 401k Benefits
• Tuition Reimbursement
• Bonuses (or other incentives)

While there is no right or wrong answer and every situation is different, here are some points to consider when deciding how much to offer your candidate.

Market Value

For any given position, there are many different considerations that affect the going rate for compensation. To make sure that your offer is competitive, conduct some research to find out what other companies are paying for similar positions, and also take into consideration the following:

• Location/Cost of Living
• Company Size
• Type of Business
• Candidate’s Education and Certifications
• Competition

Doing market value research, you will be able to align the compensation to match the employee’s sense of worth, education and experience. You will be able to provide a salary and benefits package that will put you in a position to attract a quality employee.

Here are some tools to help you research fair market values as well as competing rates:

• Salary.com
• SalaryExpert.com
• PayScale.com

Talent vs. Wages

While it’s natural to want to pay employees no more than necessary to get the job done, it’s important to consider the level of results you get as it relates to the amount of money you pay per hour. For example:

• Let’s say you pay someone $10/hour and give them a task. Let’s say it takes them 10 hours to complete the task – this costs you a total of $100.
• Give that same task to someone you pay $25/hour, and it takes them three hours to complete the task – this only costs you a total of $75.

In this scenario, you’re spending more on an employee that you’re paying a lower hourly wage. Keep in mind that performance is more of a necessity than cheap labor, and paying someone a higher wage can be worth it for efficiency and quality work.

Supervisory Costs

Depending on how large your team is and the supervision level needed for the employee, you may incur additional costs that should be measured when deciding on compensation. Things to consider include:

• Will the employee need supervision? If so, how many hours?
• Will the employee need MY supervision directly? How much?
• How long will it take for the employee to be trained in this role?

Asking yourself these questions can be very valuable in avoiding surprise costs when you bring on a new employee.

Remember, There Is No Right or Wrong Answer

Every hiring scenario is different, and every candidate has different needs and expectations for salary. It is important to do your research, but it’s also important to get a read on the candidate to determine how to best proceed with making an offer of compensation. Use your best judgment to decide what’s best for you.

Making an Offer

Once you’ve interviewed enough candidates and have selected the right person for the job, it’s time to make an offer. To ensure that you don’t miss out on the right person for the job, you should take the following steps:

• Move Quickly – try to contact the candidate the same day after their final interview.
• Always Call – never send an email or snail mail to make a job offer.
• Be Excited! – tell the candidate that you chose them over several other resumes and that you are really impressed with them and excited to work with them.
• Be Clear About Money – explain the pay and benefits thoroughly right away.
• Get a Commitment – some candidates may need to consider your offer, but ask them what they think about your offer and when they may be able to commit.

Once your offer is accepted and your employee is ready to start, you will need to make clear the characteristics of the job offer. Be clear about the hours and responsibilities you expect from your employee. This is especially critical for virtual employees. Explain the vacation and sick time the company offers (if applicable), health benefits (if applicable) and 401k benefits (if applicable). Discuss the salary and payment schedule. Explain the perks of the job, such as expenses or travel (if applicable), and do your best to give a general time that performance reviews will be scheduled. In addition to communicating these details verbally, it is best to put them in writing as well.

Once the candidate agrees to the stipulations of the job offer, have them sign an agreement. Keep the original and give them a copy for their files.

You’ve just hired an employee!

Communicating to Those Not Hired

Once you have selected and hired the best qualified candidate, it is common courtesy to communicate to all other applicants that they have not been selected. To do so, draft a polite, positive message thanking them for applying and encouraging them to continue to apply for future positions that they may be better suited for.

Hiring a new employee may seem like a giant undertaking and a lot of work. It doesn’t have to be that way, and there are many ways to make it an efficient process with little stress. If this is your first time hiring an employee, it will get easier with time.

Keep in mind that although it seems like a lot of work, finding the right person is priceless to your business success and your personal sanity. Putting in the time and effort to find the candidate who will improve both your business and quality of life will pay in dividends down the road. Remember that you can’t do everything yourself, and that the most successful people have a great team behind them. Conversely, rushing the hiring process and adding the wrong person to your team can be detrimental to your growth – especially if you have a team of motivated employees already. One bad apple can surely spoil the bunch, so it is extremely important that you take your time and choose the best fit for your company!

When you have a need for new talent to help you grow your business, a plan for seamlessly finding such talent is crucial! With the tips and strategies presented in this article, you will be able to put this type of plan in place, so that you can be on your way to creating a strong, solid team of employees and a business that works like a dream!