Tip one:
Make sure that you know what you are getting yourself into. Hiring the right employees is going to take some time and preparation. You want to know ahead of time what you want so you know if you need to hire a part-time or full-time employee or possibly an independent contractor. You will also need to look into payroll and benefits for your employees; will you do it or will you have it outsourced?

Tip two:
Ask around for some referrals on employees. Before you even place a help wanted ad talk to other people about anybody that they know who is looking for a job. However, if asking for referrals make sure that you are specific in what you are looking for, you don't want to hire somebody that is lazy and unorganized, and you want to ask for referrals for people who are trustworthy and hard working. You can also look for and recruit employees from local universities and community colleges, organizations or trade associations, and chambers of commerce.

Tip three:
Do your homework before you start hiring people. What this means is that before you actually hire anybody you need to make yourself familiar with your state's employment laws and with your town's zoning laws. The town zoning laws will tell you if you are allowed to have employees working for you in a home business, some towns do not allow it or restrict it to only family members.

Tip four:
Define your compensation package ahead of time. Plan how much you can afford to pay your employees and what kinds of benefits you are going to be able to afford to offer them. If you are trying to cut costs, you should think outside the box on what you can offer your employees. Instead of offering paid vacation offer them flexible hours or the chance to telecommute, these are both huge advantages for prospective employees.

Tip five:
Make sure that you are diligent when it comes to screening your potential employees; this is done before you even start interviewing them in person. You are going to want to carefully screen your employees before you decide on hiring them, mainly because this person is going to be coming into your home every day. You are going to want to make sure that you verify that they are legally permitted to work in the United States, perform a background check, and check any and all references that they provide.

Tip six:
Conduct an interview with the potential employees that have made it through your screening process. In the interview, you want to get as much information from them as possible. In addition to them submitting a resume, you are going to want to have them fill out an application, and you will need to ask for more references. If possible have another person with in for the interview because that will enable you to get somebody else's opinion of each person that your interview. During the interview, you are going to want to ask job-specific questions and try to create scenarios that would test how they would handle specific situations.

Tip seven:
Make sure that all of your assets are covered. You will need to check with your business insurance policy holder to see if it includes worker's compensation, if it does not you will need to add it if you are adding employees. You also need to check on any other liabilities that you might be open to if you hire employees, which is best done through consulting your insurance agent or broker before your employee begins work.